Online gambling and sports betting are among the most debated topics in Texas, a state historically known for its conservative stance on gambling.
While most forms of online gambling, including casinos and poker, remain illegal, recent discussions in the Texas Legislature suggest a shift may be on the horizon.
With neighboring states reaping significant revenue from legal gambling, Texas faces mounting pressure to reconsider its laws.
Here’s everything you need to know about sports gambling in the Lone Star State.
Is Sports Betting Legal in Texas?
Sports betting and most other forms of gambling remain illegal in Texas. Despite the 2018 U.S. Supreme Court decision that allowed states to legalize sports betting, Texas has yet to pass such legislation. Efforts to legalize sports betting have been made, but none have been successful to date.
However, it’s worth noting that Daily Fantasy Sports (DFS) platforms, such as DraftKings and FanDuel, continue to operate in the state.
Beyond sports betting, the state’s gambling laws are highly restrictive. Casino gambling is largely banned, with only a few Native American casinos operating under federal law.
Poker rooms operate in legal gray zones, and the state permits parimutuel wagering, a state lottery, and charitable bingo.
Texas remains one of the largest untapped markets for sports betting, making it a key state to watch in ongoing legislative discussions.
| Category | Status in Texas |
| Online Sports Betting | ❌ Illegal |
| Retail Sportsbooks | ❌ Illegal |
| Daily Fantasy Sports (DFS) | ✅ Legal (Gray Area) |
| Horse Racing Betting | ✅ Legal |
| Neighboring States with Legal Betting | ✅ Louisiana, Arkansas, Oklahoma |
The History of Sports Betting Laws in Texas
PASPA Repeal and Federal Developments
The 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA) marked a turning point for sports betting in the U.S., allowing states to legalize and regulate sports wagering.
While over 30 states have embraced legal sports betting since then, Texas has remained resistant due to its conservative political landscape.
State Legislative Efforts
Efforts to legalize sports betting in Texas gained momentum in 2021, with proposals for a constitutional amendment that would allow regulated wagering.
The initiative was backed by major players, including Jerry Jones, owner of the Dallas Cowboys, and Tilman Fertitta, owner of the Houston Rockets, who argued that legalization could boost fan engagement and state revenue.
In 2023, new bills were introduced to establish a legal framework for mobile sports betting and allow limited casino-style gambling.
Despite bipartisan support and heavy lobbying efforts, the bills failed to gain traction in the Senate, largely due to opposition from conservative lawmakers and influential anti-gambling advocacy groups.
Neighboring States and Market Potential for Online Gambling in Texas
Texas’s neighboring states have embraced legal gambling, creating competitive markets that draw Texans across state lines.
Louisiana, for instance, has become a hub for sports betting, with its online sportsbooks generating over $250 million in revenue in 2023. This highlights the immense market potential for regulated gambling.
In Oklahoma, tribal casinos continue to report steady growth. Under tribal compacts, they offer a mix of gaming options, including limited sports wagering.
According to the American Gaming Association, the absence of legal sports betting in Texas leaves an untapped market estimated at $6 billion annually in unregulated wagers.
A report by Eilers & Krejcik estimates Texas could generate over $360 million in direct tax revenue annually from legalized sports betting while adding $2.6 billion in economic output and over 8,000 jobs.
Proponents like Texas Rangers co-owner Neil Leibman highlight that this revenue could be directed toward education, infrastructure, or reducing property taxes.
As neighboring states capitalize on legal sports betting, many Texans are traveling across state lines to participate, further highlighting the economic loss for Texas.
GeoComply data highlights the significant demand for legal sports betting in Texas, with over 1.48 million geolocation checks (location verifications to comply with betting laws) recorded during the NFL regular season from September 5, 2024, to January 5, 2025.
This figure reflects Texans attempting to access legal sportsbooks despite the state’s lack of regulation.
As Texans flock to Louisiana and Oklahoma to gamble legally, the pressure mounts on Texas lawmakers to capitalize on this revenue and prevent further economic loss to its neighbors.
Who’s Influencing Online Gambling Laws in Texas?
The push to legalize sports betting in Texas involves a wide range of stakeholders, each with their own interests and strategies:
Professional Sports Teams:
- Teams like the Dallas Cowboys, Houston Texans, and San Antonio Spurs are vocal proponents.
- They argue that legal sports betting could enhance fan engagement and generate new revenue streams.
Major Casino Operators:
- Companies such as Las Vegas Sands have poured millions into lobbying efforts.
- Their focus includes advocating for integrated casino resorts that feature sports betting as a key attraction.
Major Sportsbooks:
- DraftKings and FanDuel see Texas as a crown jewel in the U.S. sports betting market.
- Their initiatives include educational campaigns to persuade lawmakers and the public about the benefits of regulation.
Conservative Lawmakers and Advocacy Groups:
- Many remain opposed, citing moral concerns and the potential for social harm.
- Their steadfast resistance has left the path to legalization uncertain.
Each of these groups continues to shape the conversation, making the future of sports betting in Texas a complex and highly debated issue.
Responsible Gambling
While sports betting remains illegal in Texas, responsible gaming practices are essential for those engaging in gambling activities elsewhere or anticipating future legalization.
Gambling addiction is a significant concern, with risks including financial losses and strained personal relationships.
Organizations like the Texas Council on Problem Gambling and the National Council on Problem Gambling (1-800-522-4700) provide resources to help individuals manage their gambling habits.
What’s Next for Sports Betting in TX?
The future of sports betting in Texas hinges on legislative action. While recent proposals failed to pass, growing public interest and significant revenue potential suggest the issue will resurface in the 2025 legislative session.
Key stakeholders, including professional sports teams and casino operators, will likely intensify their efforts to sway lawmakers.
Through new legislative proposals or voter initiatives, Texas bettors may eventually be able to join the growing trend of legal sports betting in other states.
For now, the Lone Star State remains a closely watched battleground in the national gambling debate.
