Texas

Between the size of the state and the amount of sports influence present, Texas could possess one of the biggest sports betting scenes in the country. Unfortunately, sports betting will remain illegal in the state until at least 2025, as the Lone Star State remains unable to get a bill over the finish line.

There are two main options Texas residents have when it comes to gambling or sports-related contests. The first of which is daily fantasy sports apps, which are available to download and use in the state. While they are unregulated, these apps are the closest residents of Texas will get to “having action” on a specific player or game. Some available operators include Prize Picks and Underdog Fantasy.

Outside of DFS apps, the only other gambling-related activity residents can take part in is betting on horse racing. There are a few racetracks throughout the state, some of which offer a simulcast, which in turn allows residents to bet on horse racing year-round.

Online sports betting in The Lone Star State

There are a little over 29 million people who live in Texas, and none of them have the option to download a licensed sports betting app. Despite being one of the biggest states in the country in terms of population, the Lone Star State has been unable to pass a sports betting bill.

This is not to say lawmakers haven’t tried. In fact, since the overturning of PASPA in 2018, there have been close to ten sports betting bills that have been proposed during the state's legislative sessions. One of the toughest aspects when it comes to getting a bill of this magnitude passed in Texas is that they only have legislative sessions every other year, which means bills have only been able to be proposed in 2019, 2021, and most recently in 2023.

In 2023, one bill and resolution surrounding sports betting were proposed during the state’s legislative session. Many professional sports teams in the state supported HB 1942, as multiple teams have already partnered with brand-name sportsbook operators as sponsors. Outside of that bill, lawmakers also introduced HJR 102, which would have put the sports betting issue on the ballot for voters in November 2023.

This bill and resolution were greatly supported by the House, but like usual, these proposals ran into problems with the Senate. No matter how much support these bills have, as long as conservative lawmakers in the state oppose sports betting, it will continue to be an uphill battle.

Residents of Texas will have to wait until 2025 for the matter to be discussed again. With deals already being made between pro teams and operators without any legislation in place, it’s safe to assume that whenever sports betting is legalized in The Lone Star State, online operators will rush to obtain a license.

Sports betting & gambling legislation in TX

As much as it would be nice to tell Texas residents to remain optimistic, it is difficult to do so with such strong opposition against sports betting and a few other gambling markets. Two of the biggest driving forces in keeping sports betting out of the Lone Star State are Rep. Greg Abbott and Lt. Gov. Patrick, who were both reelected into their positions in 2022.

In 2023, Lt. Gov. Patrick stopped HJR 102 from reaching a vote in the Senate, using his power as the Senate president to do so. Patrick also did not allow HB 1942 to reach the Senate floor. As long as Rep. Abbott and Lt. Gov. Patrick, or at least like-minded individuals, hold power in the Senate, it will not only be difficult for sports betting to see the light of day but other gambling markets as well, like iGaming or online poker.

Most recent updates from the TX sports betting & gambling scene

• May 16, 2024: Texas Longhorns quarterback Quinn Ewers is one of three athletes who will be on the cover of NCAA Football '24. The gunslinger is currently (+900) to win the Heisman.

• May 5, 2024: With a game seven victory over the Vegas Golden Knights, the Dallas Stars have secured their ticket to the second round of the Stanley Cup Playoffs. The Stars are currently (+500) to win the Stanley Cup.

• April 30, 2024: A familiar face will be back with the Cowboys, as Ezekiel Elliot has signed a one-year contract to return to the team. The Cowboys are currently (+1500) to win the upcoming Super Bowl.

• April 25, 2024: The Dallas Cowboys have selected former Oklahoma tackle Tyler Guyton in the first round of the 2024 NFL Draft.

• February 21, 2024: The Dallas Stars have officially partnered with PrizePicks, as the team becomes the fast-growing fantasy app's first NHL partner. 

• November 30, 2023: Dallas Mavericks owner Mark Cuban sells a majority stake in the team to the Adelson family, well-known in the casino industry through Las Vegas Sands. Given the Adelson family's connection to the casino business, this move has sparked speculation about the future of legalized gambling and sports betting in Texas.

• November 3, 2023: Mark Cuban continues to advocate for legalized casino gambling in Texas. He believes resort-style gambling could attract more visitors with amenities and a Vegas-style atmosphere.

In-person sports betting sites and locations

Not only is sports betting illegal in Texas, but so is commercial casino gambling. This makes the lone gambling options tribal casinos, and currently, there are two tribal facilities in the state. The Kickapoo Traditional Tribe operates the lone full-scale casino in the state, but the location is about as far south in the state as one can go without crossing the border over to Mexico.

The only other gambling facility in the state is an electronic bingo parlor. This facility is run by the Alabama-Coushatta Tribe. More tribal communities have been pushing for an opportunity to run their own legal gambling facility, but that issue remains a battle with the state’s government.

Sports betting in neighboring states

Of the four surrounding states that Texas has, Oklahoma is the only one that does not have an active sports betting bill. Both Louisiana and Arkansas feature strong sports betting markets, and while New Mexico only has sports betting in tribal casinos, it is still more than what Texas has to offer.

We have full breakdowns of all of these states and what they do and don’t have to offer, and those can easily be accessed by clicking on their name in the box down below.

What’s next for TX betting apps?

A decision to legalize sports betting in Texas certainly won’t magically happen, and there is no chance of it happening in 2024 due to how the state’s legislative process works. However, the slight positive is that it gives lawmakers more time to solidify a sports betting bill proposal and garner more big supporters to back the bill.

The closest Texas ever got to getting a bill passed was in 2023, which should lend some optimism for when 2025 rolls around.

Potential sports betting revenue impact on Texas’ economy

No revenue-based statistics for sports betting are available for the Lone Star State. It shouldn’t be a surprise, but the longer Texas has to wait to get a sports betting bill passed, the more potential revenue it is losing. According to a study by Eilers & Krejcik Gaming, Texas is losing out on nearly $300 million in tax revenue annually, assuming the tax rate would be 10%.

Additionally, another study showed that residents of Texas gamble an average of $5 billion a year in either Las Vegas or surrounding states with legalized sports betting. Numbers like this alone stand as key arguments for sports betting supporters in the state. Texas is clearly losing significant amounts of money to neighboring states with sports betting legislation.

Texas is truly sitting on a gold mine, and they refuse to explore it. Based on population alone, Texas would be the largest state with legalized sports betting if it decided to legalize it. Currently, New York is the biggest state in the country with a full sports betting scene, and since legalizing sports betting, they have made over $41 billion in handle and $3.6 billion in revenue.