In the heart of America, Texas stands among the 11 states that have yet to legalize sports betting. Yet, beneath the surface, a powerful tide of support is swelling, threatening to reshape the landscape forever.
With professional sports teams voicing their approval and many Texans already seeking ways to place bets, the momentum suggests that sports betting in Texas could become a reality sooner than anticipated.
The recent surge in support for legalization is noticeable and it might be just enough influence to get a bill passed this year.
Sports Betting Legislation in Texas
Last session (2023), the Texas legislature fell short of legalizing sports betting in the state, after a historic House vote passed a bipartisan bill, but the Senate declined to take up.
Why? The Texas Senate is led by Lt. Gov. Dan Patrick, who has long stood in the way of expanding gambling in Texas. He did not even let the Senate consider it.
In an interview with CBS News Texas last month, Patrick said there was no outcry from the voting public after both Texas sports betting and casino legislation failed to pass. “When the session was over, there was not a cry from voters calling their senators or House members, gosh, we didn’t pass, I needed this bill,” Patrick said. He also says there is not enough support in the Senate.
But a new initiative has already been set in motion as State Sen. Carol Alvarado recently filed Senate Joint Resolution 16, which would legalize sports betting in Texas. This effort represents a key component of the broader movement to authorize sports betting across the Lone Star State.
“Go to (casino parking lots in) Louisiana and Oklahoma and a lot of the license plates are from Texas. So we know that it’s something that Texans enjoy and spend money on. And I think we ought to take that robust passion that Texans have, and do it here and benefit our economy,” Sen. Alvarado said.
There are others who are urging the Texas Legislature to take action later this month to allow sports betting.
Texas Could Gain $363M by Legalizing Sports Betting
A study by the research firm Eilers & Krejcik backs Alvarado’s economic benefit claim.
It’s titled “Legal Online Sports Betting In Texas: Revenue Forecast And Economic Impact Analysis,” and shows that legalizing online sports betting in Texas could earn the state as much as $363 million each year in tax revenue and generate over $2.6 billion in economic output.
It could also create as many as 8,000 jobs, providing Texans with nearly $580 million in wages annually.
Lauren Clay from the Texas Sports Betting Alliance says that legalizing sports betting in Texas would also protect consumers from risky, illegal markets.
Sports Betting Advocate Thinks It’s Close
The Texas Sports Betting Alliance is made up of several stakeholders that are publicly calling on the legislature to legalize sports wagering.
Its partners include almost every major sports team in Texas, from the Dallas Cowboys and the Houston Astros to Austin FC and the Texas Motor Speedway.
Despite the failure of the past, sports betting advocates say the upcoming session in the Texas state legislature may prove better.
"I would be willing to put a dollar on it," John Scott, a spokesperson for the Texas Sports Betting Alliance, told CBS Austin.
Scott served as Texas Secretary of State for more than a year, was deputy Attorney General under Greg Abbott, and was named interim Attorney General during Ken Paxton's impeachment trial.
Scott told CBS Austin that although he hasn’t spoken to Patrick recently, he thinks the Lieutenant Governor is more receptive to the idea than ever before, “He has always made clear that if there is a groundswell within the Senate that they want this, that he’s open to it.”
Texans Already Trying To Bet
GeoComply is a company used by sports betting operators to identify a user's location and determine if bets can be placed in that specific state.
GeoComply data shows that in November alone, an estimated 1.5 million attempts to bet on sports were made in Texas.
Advocates argue that Texans are already participating in sports betting through illegal channels or by traveling to other states.
According to a 2022 report by the American Gaming Association Texans spend an estimated $6 billion on illegal, unregulated sports wagering each year.
“For me, it’s not really a revenue issue, it’s a freedom and liberty issue,” State Rep. Jeff Leach told the Austin American-Statesman. “Thirty-nine states have passed some form of legalized sports betting. Our data shows that this is rampant now in the state of Texas. A million sports bets were placed per year, totaling over $2 billion. And all of it is unregulated. It’s unsafe and extremely risky for everyone involved.”
The Future of Sports Betting in Texas is Now
As neighboring states and others across the nation (Missouri just legalized sports betting on election day) reap the benefits of legalized sports betting, pressure is mounting on Texas lawmakers to reconsider their position.
Will the Lone Star State embrace change, or maintain its resistance to a trend sweeping the nation? The future teeters on the brink, as forces gather on either side, preparing for a showdown that could redefine an era.
