Current Status of Sports Betting in Texas
Texas remains one of the largest states in the U.S. without legalized online sports betting. Despite the growing popularity of sports betting nationwide, Texas has yet to join the 39 states that have legalized some form of it. The state’s restrictive gaming laws make it challenging for proponents to push through legislation. However, the potential market size makes Texas a significant target for sports betting companies. Online sports betting is still illegal, but many Texans engage in it through illegal means like offshore websites.
Efforts to Legalize Sports Betting
Casino and sports betting companies are actively campaigning to change the laws in Texas. Las Vegas Sands is leading the charge by employing lobbyists to persuade the Republican-controlled Legislature to authorize “destination resorts” with casino gambling in major cities. The Texas Sports Betting Alliance, which includes pro sports teams and platforms like FanDuel and DraftKings, is also lobbying for legalized online sports betting. A proposal narrowly passed the Texas House in 2023 but failed in the Senate.
Political Challenges and Opposition
Lt. Gov. Dan Patrick has consistently opposed expanding gambling, citing minimal support among Senate Republicans. His opposition remains a significant barrier as he holds office until January 2027. The Texas Republican Party, advocacy groups like Texans Against Gambling, and the Kickapoo Traditional Tribe of Texas also oppose gambling expansion. Critics argue that casinos could lead to negative social impacts, such as increased human trafficking and gambling addiction, without spurring long-term economic growth.
Public Support and Economic Potential
Despite political challenges, there is substantial public support for legalized sports betting in Texas. Recent polls show 60% support for sports betting and 73% for resort casinos. Legalizing mobile sports wagering could generate $32 billion in handle and $3.68 billion in gross gaming revenue for Texas. With a proposed tax rate of 15%, legalization could create approximately 8,000 jobs and result in about $360 million in direct tax revenue annually. The economic potential makes it an attractive proposition for many stakeholders.
Governor’s Stance and Legislative Efforts
Governor Greg Abbott has shown cautious support for sports betting legalization. He acknowledged that some Texans likely already engage in online sports betting. However, not enough legislative action has been taken yet. The only filed gambling legislation this session comes from Sen. Carol Alvarado, proposing a tax on casino revenue to fund public services. The bill faces challenges due to Senate opposition led by Patrick. Changes to Texas’ gaming laws require amending the state constitution with two-thirds approval from both legislative chambers and majority voter support statewide.
Future Prospects and National Context
The Texas legislature meets only every other year, making it more challenging to pass sports betting legislation. The next session begins on January 14, 2025. The earliest possible vote on a bill legalizing sports gambling could be November 2025, with implementation potentially occurring late in 2026 or as late as 2028 if delayed further. Texas is not alone in its efforts; states like Georgia and Minnesota are also expected to consider sports betting legislation in 2025. Missouri recently passed a sports betting measure, set to go live in 2025.
Conclusion
The push for online sports betting legalization in Texas is a complex issue involving political, economic, and social factors. While there is significant public support and economic potential, political opposition remains a formidable barrier. As the state navigates these challenges, the outcome will have a substantial impact on the national sports betting landscape. With Texas being a large market with multiple NBA and NFL franchises and popular college fan bases, its legalization could significantly impact the U.S. market once live.