Jerry Jones: Without Sports Betting, Texas Missing Out On Big Revenue

Posted on: August 30, 2024, 04:45h. 

Last updated on: August 30, 2024, 04:45h.

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

Dallas Cowboys owner Jerry Jones has long supported bringing regulated sports betting to Texas and he recently reiterated that view, noting that the state is missing out on substantial tax revenue by failing to legalize that mobile sports wagering.

Jerry Jones
Dallas Cowboys owner Jerry Jones at an NFL awards show. He says Texas is missing out on big tax revenue by not legalizing sports betting. (Image: Blogging the Boys)

In a media session earlier this week following a Cowboys practice, Jones said he thinks the Lone Star state will eventually have sports betting, but until then, Texas is missing out on an opportunity to generate significant tax receipts.

I think ultimately you’ll have sports betting in the state of Texas. Until that time, the state does lose an opportunity for huge amounts of revenue,” the Cowboys boss said.

Jones didn’t speculate as to when the state could approve mobile sports betting, but it appears that is highly unlikely to happen prior to the 2027 legislative session. If it happens then and the matter is approved by voters later that year, it’s possible Texas would have mobile sports wagering in advance of the 2028 football season.

Jones Wants Transparency in Texas Sports Betting

Jones and other owners of professional teams located in Texas have been vocal supporters of regulated sports wagering coming to the state because it’d be a money-maker not only for the state, but for their franchises as well.

Former Gov. Rick Perry (R-TX) previously said a regulated sports betting market could generate $250 million for the state, based on an estimated black market handle of $8.7 billion. However, some analysts and industry observers debate the extent to which Texas will financially benefit from sports betting, with some taking issue with the $8.7 billion figure. Beyond the financial implications, Jones wants Texas to execute sports betting in such a way that it’s fair and transparent.

“I think that properly, properly supervised, by the people that play the games and people that have the teams that play the games and the individual athletes — you’ve got to make sure that the perception is and the reality is that there’s just no compromising on it all being very competitive and up-and-up,” he told the press. “I think that takes some time in some places more than it does others.”

Jones has some gaming investments, including ties to an Arkansas casino plan. Along with several other professional team owners, he was an early investor in DraftKings (NASDAQ: DKNG).

Texas Sports Betting Outlook

In 2023, both casino gaming and sports wagering made more progress than the issues previously had in Texas, but both ultimately perished because there wasn’t momentum in the state Senate to take up the related bills.

Lt. Gov. Dan Patrick (R) controls what bills are heard in the Senate and his opposition to gaming expansion is well-documented.

Due to this being an election year, the Texas legislature had a brief schedule, making it difficult to consider gaming issues. The legislature is scheduled to reconvene in January, but the prevailing wisdom in sports betting circles is that politicians there won’t prioritize sports wagering.