Sports betting in the United States has rapidly expanded since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018. Since then, more than 30 states have legalized sports betting, generating billions in revenue and creating a new wave of engagement for sports fans. However, despite its massive population, rich sports culture, and thriving economy, Texas has yet to legalize sports betting.
With professional teams in every major sport, a dedicated fan base, and significant interest from gambling operators, Texas is considered one of the most lucrative untapped markets for sports betting. Yet, the state’s historically conservative stance on gambling, legal restrictions, and political resistance have made legalization a challenging process.
This article explores the current legal status of Texas Sports Betting the challenges preventing its legalization, the potential economic benefits, and the future outlook for the industry.
Current Legal Status of Sports Betting in Texas
Is Sports Betting Legal in Texas?
As of 2025, sports betting remains illegal in Texas. The state has some of the strictest gambling laws in the country, allowing only a few forms of betting:
- The Texas Lottery, established in 1991.
- Pari-mutuel betting on horse and greyhound racing.
- Limited tribal gaming at select Native American casinos.
Despite these exceptions, Texas law explicitly prohibits sports betting, whether online or in-person.
What About Daily Fantasy Sports?
Daily Fantasy Sports (DFS) platforms like DraftKings and FanDuel operate in Texas but exist in a legal gray area. While these platforms argue that DFS is a game of skill (rather than gambling), Texas Attorney General Ken Paxton ruled in 2016 that DFS contests constitute illegal gambling under state law. However, enforcement has been minimal, allowing platforms to continue operations.
Efforts to Legalize Sports Betting
Over the years, lawmakers have attempted to introduce sports betting legislation in Texas, but efforts have failed due to strong opposition from conservative lawmakers and political leaders.
- 2021: A bill proposing sports betting, backed by Texas professional sports teams, was introduced but failed.
- 2023: Another set of sports betting bills gained traction but did not make it through the legislative process.
- 2025: New proposals are expected, but the outcome remains uncertain.
One of the biggest hurdles is that Texas requires a constitutional amendment to legalize gambling expansion. This means that even if the Legislature approves sports betting, voters would need to approve the change in a statewide referendum.
Challenges Preventing Sports Betting Legalization in Texas
1. Political Opposition
Texas has historically been a conservative state when it comes to gambling laws. Many elected officials, including Lt. Governor Dan Patrick, have openly opposed sports betting, arguing that it could lead to increased problem gambling and other social issues.
2. Religious and Moral Concerns
Religious and family-values groups have also played a significant role in keeping sports betting illegal. These groups argue that gambling leads to addiction, financial hardships, and other negative social consequences. Their influence in Texas politics makes it difficult for pro-gambling legislation to gain traction.
3. Constitutional Restrictions
Unlike some states where lawmakers can legalize sports betting through a simple vote, Texas law requires a constitutional amendment. This means that:
- A bill must pass with a two-thirds majority in both the House and Senate.
- It must then be approved by a majority of Texas voters in a public referendum.
This high barrier makes legalizing sports betting a difficult task.
4. Opposition from Competing Gambling Interests
Texas has three federally recognized Native American tribes, each operating limited gaming facilities. If sports betting were legalized, these tribes might push for exclusive rights to operate sportsbooks. Additionally, casinos in neighboring states (such as Louisiana and Oklahoma) benefit from Texas residents crossing state lines to gamble and may lobby against legalization.
Potential Economic Benefits of Legalizing Sports Betting in Texas
Despite the challenges, the economic benefits of a regulated sports betting market in Texas are too significant to ignore. If legalized, Texas could become one of the largest sports betting markets in the U.S., with billions in potential revenue.
1. Increased Tax Revenue
- Experts estimate that legal sports betting could generate over $500 million annually in tax revenue for Texas.
- This revenue could be used to fund education, infrastructure, and public services, similar to how other states allocate gambling tax revenues.
2. Job Creation and Economic Growth
Legal sports betting would create thousands of jobs in various industries, including:
- Retail sportsbook operations at casinos, racetracks, and stadiums.
- Tech and software development for online betting platforms.
- Customer service and marketing roles for sportsbook operators.
3. Consumer Protection
Currently, many Texans use offshore sportsbooks or travel to neighboring states to place legal bets. These offshore operators are unregulated and lack consumer protections, leading to issues like unfair odds and difficulty withdrawing winnings.
Legalizing sports betting would allow Texas to regulate the industry properly, ensuring consumer protection and fair play.
How Texas Could Implement Sports Betting
If Texas legalizes sports betting, lawmakers would need to determine the best regulatory model. There are three main options:
1. Online and Mobile Sports Betting
- Would allow Texans to place bets through apps like DraftKings, FanDuel, BetMGM, and Caesars.
- Mobile betting accounts for 80%+ of wagers in states like New York and New Jersey.
- Would provide maximum accessibility for Texas bettors.
2. Retail Sportsbooks at Casinos and Racetracks
- Would require bettors to visit a physical location to place bets.
- Could be located at horse racing tracks, tribal casinos, or new casino developments.
- Would generate local jobs and boost tourism.
3. A Hybrid Model (Most Likely)
- Would allow both online betting and retail sportsbooks.
- This model has been successful in states like Pennsylvania, Michigan, and Illinois.
- Would maximize both revenue and convenience.
The Future of Texas Sports Betting
Will Texas Legalize Sports Betting?
While challenges remain, the momentum for legalizing sports betting in Texas is growing. Several key factors indicate that legalization could happen in the near future:
- Public Support: Polls show that a majority of Texans support legal sports betting.
- Pressure from Professional Sports Teams: Texas teams like the Dallas Cowboys, Houston Texans, and San Antonio Spurs are actively lobbying for legalization.
- Economic Incentives: As neighboring states legalize sports betting, Texas risks losing millions in potential tax revenue.
Potential Timeline for Legalization
- 2025 Legislative Session: New sports betting bills could be introduced.
- 2026 Ballot Measure: If a bill passes, Texas voters could decide on legalization in a statewide referendum.
- 2027 and Beyond: If approved, Texas could launch sports betting within 1–2 years.
Conclusion
Texas remains one of the biggest untapped sports betting markets in the United States. While strong political and moral opposition have prevented legalization, the economic benefits, public support, and influence of professional sports teams make it increasingly likely that Texas will eventually legalize sports betting.
With hundreds of millions in potential tax revenue, job creation, and safer betting options for consumers, sports betting could be a game-changer for Texas. The key question now is not if Texas will legalize sports betting, but when and how it will be implemented.