Introduction
Texas, the second most populous state in the U.S., remains one of the few large states without legalized sports betting. Despite growing public support and financial Texas sports betting, legislative barriers have consistently prevented the legalization of sports wagering. This article explores the current legal status of sports betting in Texas, ongoing legislative efforts, arguments for and against legalization, and what the future might hold.
Key Points
- Sports betting is currently illegal in Texas, except for limited pari-mutuel wagering on horse and greyhound racing.
- Legislative efforts to legalize sports betting have intensified, particularly in 2023 and 2025.
- Public support for legalization is increasing, especially among younger and urban populations.
- Opposition remains strong from religious groups, some conservative lawmakers, and anti-gambling coalitions.
- Texas could generate hundreds of millions in annual tax revenue if sports betting were legalized.
Legal Status of Sports Betting in Texas
As of now, Texas law does not permit sports betting. The state has some of the strictest anti-gambling laws in the U.S. Residents are prohibited from placing bets on sports through online platforms or at retail locations within Texas borders.
Permitted Gambling Activities:
| Type | Legal Status | Notes |
|---|---|---|
| Sports Betting | Illegal | No online or in-person sports betting allowed |
| Daily Fantasy Sports | Grey Area | Operated under skill-based game argument |
| Horse/Greyhound Racing | Legal | Limited to licensed racetracks |
| Casino Gambling | Illegal | Tribal casinos operate under federal agreements |
| Online Casinos | Illegal | Accessing offshore sites is technically unlawful |
Recent Legislative Activity
The Texas Legislature meets every two years, making the legislative process slower than in many other states. In both 2023 and 2025, several bills were introduced to legalize sports betting, but none have yet passed both chambers.
Key Legislative Attempts:
- 2023 – House Joint Resolution 102: Passed in the House but failed in the Senate due to lack of support from conservative lawmakers.
- 2025 – House Joint Resolution 134: Introduced to allow voters to decide via a statewide referendum. Still pending.
- 2025 – Senate Joint Resolution 16: Proposed a broader gaming expansion, including sports betting and land-based casinos.
Despite bipartisan support from some lawmakers and major sports franchises, the bills have consistently faced opposition in the Texas Senate.
Arguments in Favor of Legalization
Supporters of legal sports betting in Texas point to a number of potential benefits:
- Economic Growth: Legalized sports betting could generate hundreds of millions in revenue annually for the state through taxes and licensing fees.
- Job Creation: The industry could create thousands of jobs in customer support, IT, marketing, and venue operations.
- Consumer Protection: Regulation would protect Texans from fraudulent offshore betting sites.
- Public Support: Surveys show that a majority of Texans, particularly younger voters, support legalization.
- Support from Major Sports Teams: Franchises like the Dallas Cowboys and Houston Astros have expressed support for legal betting partnerships.
Arguments Against Legalization
Opponents cite various concerns, ranging from social and moral to economic and regulatory:
- Addiction Risks: Legal sports betting may increase gambling addiction, especially among vulnerable groups.
- Moral Opposition: Many conservative and religious groups oppose gambling on moral grounds.
- Regulatory Burden: Creating a new regulatory agency or expanding existing frameworks would require significant investment.
- Revenue Overestimation: Some argue that projected revenues are overstated and won’t match expectations.
- Political Resistance: Leadership in the Senate, particularly the lieutenant governor, has consistently opposed gambling expansion.
Economic Potential of Sports Betting in Texas
If Texas were to legalize sports betting, it could join states like New York and New Jersey, which earn hundreds of millions in annual revenue. Estimates suggest Texas could generate up to $500 million per year in taxes from a regulated market.
Estimated Annual Revenue from Sports Betting (Hypothetical):
| State | Population (Approx.) | Revenue Estimate |
|---|---|---|
| New York | 20 million | $700 million |
| New Jersey | 9 million | $500 million |
| Texas | 30 million | $500–600 million |
This potential has attracted the attention of national betting operators and casino groups, eager to enter the Texas market once it opens.
Timeline of Legislative Efforts
| Year | Bill | Description | Status |
|---|---|---|---|
| 2021 | HJR 133 | Initial attempt to legalize sports betting | Failed |
| 2023 | HJR 102 | Passed in House, blocked in Senate | Failed |
| 2025 | HJR 134 | Seeks referendum for voter approval | Pending |
| 2025 | SJR 16 | Includes sports betting and casino legalization | Pending |
| 2027 | — | Next potential legislative session | Awaiting new proposals |
What’s Next for Texas?
While 2025 represents a significant opportunity, the road to legalization remains uncertain. If current proposals pass both the House and Senate, Texans could vote on a constitutional amendment in November 2025. If not, the issue may be delayed until the next legislative session in 2027.
Challenges Ahead:
- Securing Senate approval remains the biggest hurdle.
- Political leadership has shown little interest in advancing the issue.
- A public referendum would still need to pass with majority support.
Conclusion
Texas sports betting is at a critical crossroads. While public sentiment and economic opportunity point toward legalization, political and moral resistance continues to delay progress. The upcoming legislative decisions in 2025 could determine whether Texans finally gain access to regulated sports wagering—or whether the debate continues for years to come.