Election Results Not Kind to Texas Sports Betting Hopes

Posted on: November 22, 2024, 05:01h. 

Last updated on: November 22, 2024, 05:01h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

The big sports betting headline coming out of Election Day was Missouri voters approving that form of wagering, but upon closer examination, there were some important developments in other states such as Texas.

The Texas capitol building in Austin. Sports betting is unlikely to come up for a vote in the State Senate in 2025. (Image: Getty Images)

In the previous legislative session, there was more momentum than ever before for legalizing sports betting in the second-largest state, but a bill that advanced out of the State House ultimately died in the Senate. That could be the fate of similar efforts in 2025 because Lt. Gov. Dan Patrick (R) is still in office and Republicans gained a seat in the Texas State Senate, meaning they control 20 of 31 seats in that chamber, up from 19 when a sports betting initiative died in 2023.

Republicans now comprise nearly all of the 21 Senate votes needed, and may be dissuaded from supporting legalization given the Party’s latest platform, which explicitly opposes all gambling expansion,” according to Eilers & Krejcik Gaming (EKG).

The next legislative session in Texas commences on Jan. 14 and as things stand today, it appears sports betting isn’t a priority for Senate Republicans.

Political Climate Not Favorable to Texas Sports Betting

Sports betting requires amending the Texas constitution, meaning the issue must be approved by two-thirds majorities of the House and Senate before it can be put to voters in the form of a ballot question.

Achieving that majority is doable in the Republican-controlled House, but the Senate is a different ballgame. Patrick sets the agenda in that chamber and his party is just one vote shy of a two-thirds majority, leaving Democrats with limited options for advancing sports betting legislation.

“The alternative path, in which Democrats supply up to 11 votes and thus need fewer Republicans, is also unlikely because Senate President Dan Patrick reportedly will not permit Democrats to help pass a bill in any significant way,” added EKG.

Prior to Election Day, there was some chatter about Patrick potentially being named to a post in the new Trump Administration. As of yet, that hasn’t happened, but even if it does, it doesn’t necessarily shorten the odds of sports betting coming to life in Texas  over the near-term because the politicians viewed as his most credible successors hold similar stances on gaming expansion.

Texas Sports Betting Sting Somewhat Muted

By not permitting mobile sports betting, Texas is missing out on potentially more than $1 billion in fresh tax revenue and the creation of an estimated 8,000 new jobs, the impact of 2024 Election Day was somewhat muted for sports wagering supporters in the state.

First, consensus among state political observers and the gaming industry held that 2025 was likely a nonstarter for sports betting in Texas. Since the 2023 failure, the hope has been passage of the constitutional amendment in 2027, putting the ballot question to voters in November of that year, and getting sports wagering up and running in advance of the 2028 football season.

Second, the 2024 political climate was conducive to Republicans making gains in already red Texas and that’s what happened with President-elect Trump wining the state by a margin well in excess of his 2016 and 2020 campaigns.