Texas Sports Betting – Is Sports Betting Legal In Texas?

Despite efforts from lawmakers and lobbyists, sports betting is not legal in Texas.

Legalizing the practice in Texas requires an amendment to the state constitution, which needs two-thirds approval in both chambers of the state legislature. It would then be presented to voters to decide on a constitutional referendum.

Some momentum has grown in recent years for the passage of sports gambling legislation, backed by lawmakers in both parties and a coalition of professional teams and lobbyists throughout the state.

Still, opposition from key legislative leaders has halted progress on sports betting in Texas.

Since the United States Supreme Court overturned the federal ban on sports betting in 2018, some Texas lawmakers have been active in efforts to enact gambling legislation.

Over that timeframe, lawmakers have introduced nearly a dozen bills to legalize sports betting.

None have gotten closer to becoming a reality than the two introduced in early 2023: House Joint Resolution 102 and House Bill 1942.

The measures would have paved the way for legalized sports betting and presented a constitutional amendment to voters on a November ballot.

More specifically, HJR 102 supported the proposal of the amendment, while HB 1942 laid out an early framework for the legislation governing legal sports betting if such an amendment was passed.

If enacted, HB 1942 would have provided sports betting licenses to 16 sports teams and facilities while taxing operators at a 15% rate on sports betting revenue, up from 10% in an earlier bill version.

It also allowed sportsbooks to deduct promotional costs during their first year of operation.

In May 2023, the Texas House of Representatives made history: HJR 102 survived four rounds of voting before passing with a 101-42 margin on the fifth vote, narrowly clearing the two-thirds approval needed for a constitutional amendment.

HB 1942, which only required a simple majority, passed easily with a final tally of 82-51.

It marked the first time that a sports betting measure had successfully passed either chamber in the Texas Legislature, and both measures advanced to the Senate.

Two days later, Lieutenant Governor Dan Patrick – a staunch opponent of legalizing gambling – announced that he wouldn’t refer HB 1942 or HJR 102 to the Senate without “overwhelming GOP support,” effectively killing any chance sports betting legislation would be enacted in the legislative session.

Neither bill was brought to the floor before the Senate adjourned in late May.

Despite failed efforts to enact sports gambling legislation in Texas, there remains plenty of support for sports betting among lawmakers.

While Patrick looms as a key opposition figure, politicians from both sides of the aisle have voiced their support of sports betting.

HJR 102 was sponsored by three Republicans and two Democrats and received 101 of 150 possible votes from a chamber with a roughly 55-45 split in favor of Republicans.

Rep. Jeff Leach (R-Plano), who filed HJR 102 in the House, argued that the legislation is less about expanding gambling and more about regulating the practice.

Leach has said one million Texans already bet on sports each year through illegal or unregulated channels.

Former Governor Rick Perry (R) has also become a powerful proponent of legalized sports gambling.

While he once fought against measures to legalize gambling in his state, Perry has argued such legislation would help combat billions of dollars in illegal wagers – a figure scrutinized by experts but one that speaks to revenue potential for Texas if it enacts legislation.

Texas Sports Betting Alliance

Perry also serves as the spokesperson for the Texas Sports Betting Alliance, a coalition of sportsbooks and professional sports organizations that have lobbied the state to legalize sports betting since the group was founded in 2021.

The alliance boasts partnerships with 12 major professional sports franchises in the state (along with five sportsbooks, the PGA Tour and Texas Motor Speedway) and has played a key role in supporting pro-gambling legislation over recent years.

Many of those franchises have already embraced sports betting with open arms.

The Houston Astros announced an exclusive partnership with BetMGM in 2022, while the Houston Dynamo (Fubo Sportsbook) and Frisco Fighters (BetRivers) have signed similar partnership deals.

Dallas Mavericks owner Mark Cuban has proven noncommittal about sports betting measures but has publicly declared interest in partnering with a casino if the state legalizes gambling.

Voters also appear in favor of legalizing sports betting in Texas.

In January 2023, a poll showed support from 75% of Texans for a proposed constitutional amendment that would legalize sports betting and gaming at casino resorts in each of the state’s four major metro areas.

Another poll from 2023 – three months after the passage of HJR 102 and HB 1942 – saw more than two-thirds of registered voters favor sports betting legalization if on the ballot in 2025.

Since the Professional and Amateur Sports Protection Act (PASPA) was repealed in 2018, the majority of states across the U.S. have legalized sports betting.

Texas remains a notable exception as one of a minority of states with no sports betting legislation.

It’s even more notable considering that Texas has the nation’s second-largest population (30 million) and has a team in each of the “Big Four” professional leagues (NFL, NBA, MLB, NHL).

Three of the four states bordering Texas have also started taking bets in recent years. Louisiana and Arkansas launched full online sports betting in early 2022, while New Mexico’s tribal casinos have been accepting in-person wagers since October 2018.

Oklahoma, among the states yet to legalize sports betting, sponsored legislation in early 2023 with growing support from lawmakers. The state boasts dozens of casinos and has seen major expansions to casino facilities along its southern border, putting pressure on Texas to rein in millions in potential gaming revenue lost to its neighbors.

Casino gambling is also illegal in Texas, though the state’s two tribal casinos in Eagle Pass and Livingston (regulated by the federal government) are responsible for an economic impact of nearly a half-billion dollars annually, according to the American Gaming Association. The casinos generated $50 million in tax revenue and supported over 3,000 jobs in 2022, per the AGA.

Despite efforts in the House to pass gambling legislation in 2023, Patrick failed to bring the measures to the Senate floor before the session adjourned in May.

Because the Texas Legislature meets every two years, lawmakers must wait until reconvening for their next session in 2025 to introduce new legislation. That appears to be the earliest Texans can expect further legislative efforts for legal sports betting.

Even that won’t be easy.

Patrick has been vocal about his opposition to amend the state’s constitution to allow sports wagering, even as his allies – including Cowboys owner Jerry Jones and Rockets owner Tilman Fertitta – campaign for legislation.

Patrick remains in office through 2026 and has pledged to run for reelection after his current four-year term expires.

That means bettors could wait until 2027 (or later) before placing a legal wager in the Lone Star State.