Sports Betting Legal In Texas
With the exception of fantasy sports, no sports betting is permitted inside the state of Texas. Online sports betting is illegal under state law. However, a recent pair of Texas House bills do include a provision for online wagering. So, were they to pass in their current form, online sports betting would be legal in Texas. Considering the difficulty of legalizing fantasy sports in Texas, we can only imagine how hard it will be to get the politicians on board with legal sports betting. What makes things a bit confusing is that Ken Paxton, Texas’ Attorney General, was supporting legalized sports betting in the Supreme Court.
The great state of Texas has finally put a bill forward to legalize sports betting by the end of 2021. Per The Athletic’s Daniel Wallach – Texas Republican Dan Huberty has filed HB 2070 & HJR 97 that would put Texas sports betting to a November 2021 vote. Texas sports betting had appeared unlikely in the past so this news is rather surprising.
Texas Pro-Teams Could Operate Sportsbooks
Adding to the surprises of this news is that sports teams would be license holders – rather than casinos. This would be an interesting development to see how sports leagues would work with this type of format. In most states, online sports betting apps often need to partner with local casinos or operators in order to gain access to the market. For example, in Michigan, FanDuel operates in partnership with MotorCity Casino in Detroit.
Furthermore, this could have rippling effects on the teams’ value as well as how sports betting is legalized and licensed. In order for companies like Penn National, DraftKings, and FanDuel to gain access – they must work with the teams first. According to Roundhill Investments, the bill is backed by the Sports Betting Alliance. The Alliance includes teams such as the Cowboys, Mavericks, Rockets, Rangers, and more.
Cowboys Owner Jerry Jones has long been an advocate for legalized sports betting. Jerry Jones was one of the first investors in DraftKings. This relationship could make it easy for DraftKings Sportsbook to work a deal with America’s Football Team.
What Texas Teams Would Get A Sports Betting License?
Sports betting licensees are very expensive in most states. For instance, in New Jersey, a sports wagering license costs a $100,000 renewal fee every five years. This is not including the application fees, initial fee to get the license, and other permits which total around $1 million.
Once all of these fees are paid, sports teams can then partner with sportsbooks for a fee. At this point, sports teams and sportsbooks will work together to bring the product to the state. It is unclear what kind of role these sports teams would play in the day-to-day activities of operating a sportsbook app in Texas.
Below you will see a list of the major sports teams that could vie for a Texas sports betting license.
- Dallas Cowboys
- Houston Rockets
- Dallas Mavericks
- Houston Texans
- Texas Rangers
- San Antonio Spurs
- Houston Astros
- FC Dallas
- Texas Longhorns???
College Football Betting In Texas
It is unclear where college football would fit into such an arrangement. It is unquestionable that the Texas Longhorns are one of the most popular entities in the entire state. College sports have been a difficult question across the country in the way of sports betting. Most states place some sort of restrictions on college betting. Some states, including New Jersey and Virginia, place significant restrictions on college betting, particularly on betting on in-state teams.
It is unclear at this point what sort of restrictions Texas could place on college betting or whether the Longhorns could operate their own sportsbook. This is unheard of elsewhere in the country, but sometimes in Texas, anything goes.
Expect more clarity to come on the impending bill in the state of Texas. Any Texas sports betting launch would be huge for gambling companies, even if licenses are owned by local Texas teams.
Gambling options are minimal in the Lone Star State.
The Professional and Amateur Sports Protection Act (PASPA) was overturned on May 14, 2018. Courts voted to allow each state to propose and create their own laws and regulations for sports betting. However, Texas had outlawed most gambling many decades before PASPA.
So while Texas is free to legislate legal sports betting, they have been slow to do so.
Gambling in Texas is limited to the state lottery, horse and greyhound racing, bingo, and various charitable games. Gambling on tribal lands is exempt from state law. As such, tribes can offer all your traditional casino-style games like slots, cards, and table games. However, there are only two such tribal casinos in the entire state. And their locations, one on the Mexican border and the other in Livingston, make them nearly unreachable for most of the population.
The one exception is private poker clubs; 18 are fully operational in Texas. Private poker clubs found a loophole and have taken advantage of a legal technicality. Lawmakers frown upon the gaming, but no legal action has been taken to stop them from happening.
When it comes to daily fantasy, lawmakers deemed the activity illegal in 2016. However, there’s been nearly no action taken by any state in the US against DFS players where these games are deemed illegal. So playing these games in Texas falls into a grey area.
Until Texas legalizes sports betting, neighboring states of New Mexico and Arkansas do offer legal sports betting.
When Will Sports Betting Be Legal in Texas?
In 2019, there were some positive developments for sports betting and gambling in the state. Two bills were created to legalize sports betting in House Joint Resolution 61 and House Bill 1275. Another, House Bill 3043, was put forth to build 12 casinos in counties that voted in favor of doing so were introduced. Unfortunately, none of the bills gained any traction.
No current bills are being discussed in 2020. Should a future bill be introduced, it would need to gain a two-thirds majority vote in both the House and Senate and then be put to a referendum vote to amend the state constitution in a later election. With Texas being a historically conservative state, the move to accept legal sports betting may not be in the cards anytime soon.
Should sports betting continue to expand in the US, the potential market may be too big to ignore. Texas is the second-most populous state in the country and is home to numerous high-profile major sports teams.
Texas is home to the Texas Rangers, Dallas Cowboys, Dallas Mavericks, Dallas Stars, FC Dallas, Houston Astros, Houston Dynamo, Houston Rockets, and soon to be MLS expansion side Austin FC. Additionally, Texas is a hotbed for college and high school sports and ranching and rodeos, with sports heavily ingrained in the state’s culture.
According to Dallas News, estimates say Texans spend approximately $2.5 billion a year at border casinos in other states, an astonishing amount for lawmakers to allow to continue to be spent elsewhere.
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Texas Sports Betting FAQs
Is sports betting legal in Texas?
Currently, sports betting is not legal in Texas, whether that be in-person or through mobile wagering. However, horse racing and pari-mutuel betting are legal in the state, and there are tracks throughout where gamblers can make wagers.
Are there any casinos in Texas?
In the entire state, only two tribal casinos operate to serve gamblers in Texas. One is in Livingston, and the other is in Eagle Pass.
Are Sports Betting Apps Legal In Texas
What are the professional sports teams in Texas?
Is Sports Betting Legal In Texas
Texas is home to a ton of pro sports teams. The Dallas Mavericks, Houston Rockets, and San Antonio Spurs of the NBA, Houston Texans and Dallas Cowboys of the NFL, Houston Astros and Texas Rangers of the MLB, FC Dallas and Houston Dynamo of MLS, the NHL’s Dallas Stars, and the WNBA’s Dallas Wings all call Texas home.