Is Sports Betting Legal In Texas?

Sports Betting in Texas: What You Need to Know

• Currently, sports betting in Texas is not legal, with strict gambling laws rooted in the State’s founding constitution.

• However, there have been several strong pushes to legalize sports betting in the Lonestar State, with attempts to pass legislation in 2019, 2021, and 2023.

• The Sports Betting Alliance, supported by some of the richest players and biggest names for sports teams such as the Dallas Cowboys and Houston Astros, has been lobbying aggressively for legalizations.

• One of the primary issues blocking legalization of sports betting in Texas is the need for a public referendum to ratify a bill, even if its clears the House and Senate. This means the next opportunity for legalization will be in 2025.

Texas sports betting is not yet legal, but that hasn’t stopped big names in the state from pushing hard for change.

Major players, including the Dallas Cowboys and Houston Astros, are leading the charge to legalize online and retail betting. The Sports Betting Alliance, backed by pro sports teams and sportsbook operators, has been lobbying aggressively.

Attempts to pass legislation have been made in 2019, 2021, and again in 2023, but Texas’ strict stance on gambling, rooted in its constitution, has made it difficult.

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Even if a sports betting bill clears the House and Senate, a public referendum is still required to legalize it fully. Since the Texas Legislature meets every two years, the next shot for legalization won’t come until 2025.

If Texas were to legalize sports betting, the state could see one of the most lucrative markets in the US, with online sportsbooks likely being the primary focus.

Retail sports betting could also become a reality, with several major league franchises signing partnerships with sportsbooks that could see retail sportsbooks open within stadiums upon legalization.

In this guide, we’ll break down the current legal landscape, past legislative efforts, and what to expect for Texas sports betting in the future.

History of Sports Betting in Texas

Texas has made several attempts to legalize sports betting since the 2018 overturning of PASPA (the Professional and Amateur Sports Protection Act). Lawmakers introduced various bills, but opposition from key figures like Lieutenant Governor Dan Patrick has consistently blocked progress.

Despite bipartisan support and backing from major sports teams, efforts to legalize sports betting have stalled in the state legislature.

As influential figures like Mark Cuban and sports organizations continue to push for change, the future of Texas sports betting remains uncertain but highly anticipated. Below, we’ve compiled a history of attempts to legalize TX sports betting.

2019 to 2020

• May 14, 2018: The US Supreme Court overturns the Professional and Amateur Sports Protection Act (PASPA), legislation banning sports betting in all but six US states. The decision allows states, including Texas, to pass sports betting legislation.
• January 25, 2019: Representative Eddie Lucio III (D-38th District) introduces HJR 61 and HB 1275, the first sports betting bills in Texas after the PASPA decision. HJR 61 proposes a constitutional amendment to legalize betting, and HB 1275 outlines regulations. Neither bill makes it to a vote.
• November 10, 2020: Representative Joe Deshotel (D-22nd District) proposes HB 477, allowing retail gambling at nine locations in the Lone Star State, including sports betting. The Texas Lottery Commission would deliver oversight.
• December 9, 2020: Sheldon Adelson, Las Vegas Sands Corporation owner, announces a lobbying campaign to bring casino-style gaming to Texas, supporting HB 477.

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2021

• January 16, 2021: Representative Harold Dutton (D-142nd District) introduces HB 1121, a sports betting bill including a 6.25% tax rate, application fees of $250,000 and renewal fees of $200,000, a legal betting age of 18, and a ban of local collegiate sports betting.
• February 7, 2021: Senator Juan Hinojosa (D-20th District) introduces SB 736, a third sports betting bill, to the Texas Senate.
• February 8, 2021: Five Texas sports franchises, the NFL’s Dallas Cowboys, the NBA’s Dallas Mavericks, the NHL’s Dallas Stars, MLB’s Texas Rangers, and MLS’ FC Dallas, and major sports betting operators, including FanDuel, DraftKings, and BetMGM, form the Sports Betting Alliance to support the legalization of sports wagering in TX. 
• February 9, 2021: Texas Lieutenant Governor Dan Patrick tells a local radio station that the State does not support sports betting legalization.
• February 23, 2021: Representative Dan Huberty (R-127th District) introduces HB 2070, another sports betting bill. The bill is supported by the Sports Betting Alliance.
• May 31, 2021: The Texas legislative session ends without any progress on sports betting. All three bills fail to receive a vote.

2022

• April 22, 2022: Democratic nominee for Texas Governor, Beto O’Rourke, publically voices his support for legalized casino gambling and sports betting.
• November 11, 2022: Senator Carol Alvarado (D-6th District) pre-files SJR 17, a proposal to amend the constitution to allow casino gambling. The resolution also aims to create a Texas Gaming Commission, signaling lawmakers’ intent to introduce sports betting bills in the upcoming 2023 session.

2023

• February 6, 2023: HB 1942, a sports betting bill, is introduced with support from major Texas sports teams. It aims to put sports betting on the ballot for public vote.
• March 28, 2023: Lt. Governor Patrick makes another appearance on radio, reaffirming his opposition to gambling legalization.
• April 3, 2023: A pair of sports betting bills, HJR 102 and its enabling legislation, HB 1942, and HJR 155 and its enabling legislation, HB 2843, pass the committee stage and are brought before the House.
• May 11, 2023: HJR 102, a resolution proposing a constitutional amendment to legalize sports betting, passes the Texas House but is blocked in the Senate by Lieutenant Governor Dan Patrick.
• November 3, 2023: Billionaire Mark Cuban tells the Dallas News that he supports casino gambling in Texas.
• November 22, 2023: Mark Cuban and the Adelson and Dumont families, who own Las Vegas Sands, announce a deal for the two families to buy Cuban’s shares in the NBA’s Dallas Mavericks.

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Legality of Sports Betting in Texas

Texas currently prohibits both retail and online sports betting, but recent movements show growing support for legalization. Major sports teams, legislative efforts, and partnerships with sportsbooks indicate a shift in momentum.

As neighboring states profit from legal betting, Texans are eager for changes that could expand their gambling options.

Retail Sports Betting

Sports betting is currently illegal in Texas, with no retail or online options available. However, pressure is mounting to change that. Major teams like the Houston Astros, Houston Dynamo, and Austin FC are advocating for new laws to allow sportsbooks at stadiums.

They’ve partnered with big names like BetMGM and PointsBet to push for retail betting.

Texas shares borders with Louisiana, New Mexico, and Arkansas, all of which allow sports betting. Texas residents often cross state lines to place bets legally. Efforts to legalize sports betting in Texas have faced resistance, but momentum is building as neighboring states profit.

In-person horse racing betting is legal at Texas racetracks, such as Lone Star Park and Sam Houston Race Park.

If the push for sports betting at stadiums succeeds, these locations could become the first legal retail betting options in the state. Until then, Texans must continue seeking alternatives out of state.

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Online Sports Betting

Online sports betting remains illegal in Texas, though there has been a recent movement toward legalization. In 2023, sports betting bill HB 1942, backed by major sports teams like the Dallas Cowboys and Texas Rangers, was introduced in the state legislature.

While it passed in the House, Lt. Gov. Dan Patrick blocked it in the Senate, citing a lack of GOP support.

Despite bipartisan efforts, strong conservative opposition continues to stall any major progress. Texas Republicans, including Gov. Greg Abbott, have historically opposed legal sports betting.

However, pressure from neighboring states where sports betting is legal and increasing public support may eventually force change.

In the meantime, Texans can play daily fantasy sports on platforms like DraftKings and FanDuel, which have accepted contest entries for TX players since 2018.

Numerous social betting sites also accept registrations from players in the Lone Star State, although these do not offer wagers for real money.

Additionally, professional teams in Texas have begun partnering with sportsbooks in preparation for potential legalization, like FC Austin, who partnered with Fubo Sportsbook, and the Houston Astros, who partnered with BetMGM in May 2022.

While legal sports betting remains out of reach in Texas for now, growing momentum and shifting public opinion suggest the landscape could change soon.

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Future of Texas Sports Betting

The future of sports betting in Texas hinges on the growing momentum for legalization. Major players like the Dallas Cowboys and Houston Astros aggressively advocate for change.

Despite previous legislative efforts faltering, optimism remains as public support for sports betting increases.

With surrounding states like Louisiana and New Mexico reaping the benefits of legal sports betting, Texas faces pressure to follow suit.

The upcoming 2025 legislative session presents the next significant opportunity for lawmakers to push for a sports betting bill. Key proposals, like HB 1942, aim to put the issue on the ballot for a public vote.

If Texas legalizes sports betting, it could unlock one of the largest markets that US online sportsbooks would likely dominate, creating immense revenue potential. Retail betting, while limited, could emerge in stadiums and select venues.

As influential figures like Mark Cuban voice support for legalization, the path to a thriving sports betting industry in Texas appears increasingly possible. Advocates must continue rallying support among lawmakers and the public, signaling a pivotal shift in the state’s gambling landscape.

Texans remain eager for change, ready to embrace a vibrant sports betting market when the time comes.

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