The Future of Texas Sports Betting: What’s Next for the Lone Star State?
Texas, known for its deep-rooted sports culture and love for all things big, remains one of the largest untapped markets for legal sports betting in the United States. With the rise of sports betting across the nation following the Supreme Court’s 2018 decision to overturn the federal ban, many have wondered when—or if—the Lone Star State will join the ranks of states that have embraced this booming industry.
Despite resistance from lawmakers, the potential economic benefits and changing public sentiment could soon push Texas to reconsider its stance on sports betting. In this blog post, we’ll explore the current legal landscape, the challenges and opportunities of legalizing sports betting in Texas, and what the future holds for the state.
The Current Status of Sports Betting in Texas
As of now, sports betting remains illegal in Texas. The state’s gambling laws are among the strictest in the country, with only limited forms of gambling permitted, including:
The Texas Lottery: A state-operated lottery introduced in 1992.
Charitable Bingo and Raffles: Strictly regulated games for nonprofit organizations.
Horse and Greyhound Racing: Pari-mutuel wagering is allowed but heavily controlled.
Traditional casino gaming is also illegal, except for a few tribal gaming operations under federal oversight. Sports betting, whether online or in-person, is currently prohibited under state law.
Past Efforts to Legalize Sports Betting
Over the past few years, there have been attempts to bring sports betting to Texas, though none have succeeded so far. Key milestones include:
2021 Legislation:
Representative Dan Huberty introduced House Bill 2070, which aimed to legalize sports betting and create a regulatory framework. Despite support from professional sports teams like the Dallas Cowboys and Texas Rangers, the bill failed to gain traction in the conservative legislature.
2023 Push for Legalization:
In 2023, Senator Carol Alvarado introduced a bill proposing a constitutional amendment to allow casino gaming and sports betting. This effort included support from sports franchises and industry giants like DraftKings and FanDuel but faced strong opposition from influential anti-gambling groups.
Professional Teams as Advocates:
Texas’ professional sports teams, including the Dallas Cowboys, Houston Texans, and San Antonio Spurs, have emerged as vocal supporters of legal sports betting. These organizations see the potential for increased fan engagement and revenue through partnerships with sportsbooks.
While these efforts have laid the groundwork, Texas lawmakers have remained reluctant to embrace gambling expansion, citing moral and cultural opposition as well as concerns about addiction and crime.
Challenges Facing Legalization
Legalizing sports betting in Texas is no easy task. The state faces several significant hurdles:
1. Political Resistance
The Texas Legislature is dominated by conservative lawmakers who have historically opposed gambling. Religious groups and anti-gambling organizations wield significant influence and often argue that gambling could lead to addiction, financial ruin, and social harm.
2. Constitutional Amendment
Legalizing sports betting in Texas would likely require an amendment to the state constitution. This means lawmakers would first need to approve the measure by a two-thirds majority in both chambers, and then voters would have the final say in a statewide referendum.
3. Competing Interests
Texas has a diverse array of stakeholders with differing opinions on how sports betting should be implemented. Tribal casinos, professional sports teams, racetracks, and out-of-state operators all want a piece of the pie, making it difficult to reach a consensus on regulatory frameworks and revenue sharing.
The Economic Case for Legal Sports Betting
Despite the challenges, the potential economic benefits of sports betting could be too big to ignore. Here’s what Texas stands to gain:
1. Tax Revenue
States like New York and New Jersey have generated hundreds of millions of dollars in tax revenue from sports betting. With its massive population, Texas could easily become one of the top revenue-generating states for sports betting, funding key public services like education and infrastructure.
2. Job Creation
Legal sports betting would create jobs in tech, marketing, customer service, and compliance. Additionally, new casinos or sportsbooks could boost local economies by attracting tourists.
3. Preventing Revenue Loss
Currently, Texas residents who want to bet on sports often travel to neighboring states like Louisiana or Arkansas, or they use unregulated offshore sportsbooks. Legalizing sports betting would keep that money within the state.
Public Sentiment: A Changing Tide?
Public opinion on sports betting in Texas appears to be shifting. A 2023 poll by the University of Houston found that nearly 58% of Texans support legalizing sports betting. This growing acceptance, combined with the increasing visibility of sports betting through advertisements and sponsorships, could put pressure on lawmakers to revisit the issue.
What’s Next for Texas Sports Betting?
The future of sports betting in Texas largely depends on three key factors:
Legislative Momentum: Efforts to legalize sports betting will likely continue in future legislative sessions. Success may hinge on crafting a bill that satisfies the state’s conservative base while addressing concerns about addiction and regulation.
Support from Major Players: Sports teams, casino operators, and sportsbook companies will likely continue lobbying for legalization. Their involvement could help sway public opinion and lawmakers.
Voter Influence: If lawmakers approve a constitutional amendment, the issue will go directly to Texas voters. A successful campaign to highlight the economic benefits and responsible gambling measures could tip the scales in favor of legalization.
The Potential Timeline
While predicting an exact timeline is difficult, experts believe Texas is still a few years away from legalizing sports betting. The next opportunity for significant legislative action will come in 2025, as the Texas Legislature meets biennially. Even if progress is made, a statewide vote may not happen until later in the decade.
