The debate around online gambling and casino gaming in Texas continues to heat up, with the Lone Star State maintaining its traditionally conservative stance on gambling.
While brick-and-mortar casinos are largely prohibited, and online casinos remain firmly illegal, ongoing discussions in the Texas Legislature and public interest suggest change could be on the horizon.
With neighboring states generating billions in revenue from legal gambling, the pressure for Texas to reconsider its restrictive laws is growing.
Here’s everything you need to know about the current state of online casinos and gambling in Texas.
Is Online Casino Gambling Legal in Texas?
Online gambling, including online casinos, remains illegal in Texas. The state’s stringent gambling laws reflect its long-standing conservative approach to wagering activities.
Currently, there are no legal online casino platforms or poker sites operating within Texas, as the state has yet to create a regulatory framework for these forms of gambling.
Sports betting is also prohibited, although Daily Fantasy Sports (DFS) platforms such as DraftKings and FanDuel continue to operate in a legal gray area.
While these platforms classify themselves as games of skill rather than gambling, their legal status has been debated in Texas courts.
When it comes to land-based gambling, options are limited. Texas only permits gambling at a handful of tribal casinos operating under federal law.
Other gambling activities, such as charitable bingo, the state lottery, and parimutuel wagering on horse and greyhound races, are allowed but tightly regulated.
Despite growing public interest and high revenue potential, Texas lawmakers have not yet approved any legislation to legalize online gambling.
| Gambling Type | Legal Status |
| Online Casinos | ❌ Illegal |
| Online Poker | ❌ Illegal |
| Retail Casinos | ❌ Illegal |
| Tribal Casinos | ✅ Legal |
| State Lottery | ✅ Legal |
The History of Online Gambling Laws in TX
Conservative values and limited legal frameworks shape Texas’s history with online gambling and casinos. Below is an overview of notable milestones that have defined the state’s approach to gambling laws.
Native American Gaming Compacts
Under the Indian Gaming Regulatory Act, federally recognized tribes in TX, such as the Kickapoo Traditional Tribe of Texas, operate casinos on tribal lands.
However, these facilities are limited to Class II gaming, such as bingo and electronic bingo machines, as the state has not negotiated compacts to allow Class III games like slot machines and table games. This limitation has kept tribal gaming revenue relatively low compared to other states.
State Lottery and Parimutuel Betting
Texas legalized its state lottery in 1991, and parimutuel wagering on horse and greyhound races was approved around the same time. These measures were considered compromises to generate state revenue without fully embracing casino-style gambling.
Recent Legislative Efforts
In recent years, bills proposing the legalization of online casinos and sports betting have been introduced but have failed to pass. Opposition from conservative lawmakers and advocacy groups and limited bipartisan support have hampered progress.
Meanwhile, major casino operators and professional sports teams continue lobbying for legislative reform, citing significant revenue potential and economic benefits.
Neighboring States and Market Potential for Online Casinos in TX
Texas’s neighboring states have leveraged legal gambling, including casinos, to drive significant economic growth, further emphasizing the untapped potential in the Lone Star State.
- Louisiana: Offers an impressive gambling landscape with land-based and riverboat casinos and legalized online sports betting since 2021. Casino gaming generated over $2.7 billion in revenue in 2023.
- Arkansas: In November 2018, Arkansas voters approved a constitutional amendment allowing casinos to operate in specific counties. The state is now home to three major casinos, which collectively reported a record total gaming win of approximately $686.6 million in 2023.
- Oklahoma: Hosts over 100 tribal casinos under gaming compacts, making it one of the largest casino markets in the U.S.
Market Potential for Texas Casinos
- Revenue Projections: Legalizing casinos and sports betting in Texas could generate over $6 billion annually in combined gambling revenue. Online sports betting alone is projected to produce a handle of $32.1 billion annually, yielding $3.68 billion in gross gaming revenue.
- Economic Impact: Building and operating resort-style casinos in Texas could create approximately 185,000 construction jobs and 70,000 permanent jobs. Legalized casinos are expected to generate between $2.5 billion and $3 billion in annual tax revenue, while sports betting could add an extra $344 million in state tax revenue, providing substantial support for public services.
- Curbing Revenue Loss to Neighboring States: Many Texans currently travel to Louisiana and Oklahoma to gamble, funneling revenue out of state. Legalizing gambling in Texas would help retain this money, boost local economies, and capture lost revenue.
Who’s Influencing Online Gambling Laws in TX?
Lieutenant Governor Dan Patrick has consistently dismissed the urgency of legalizing casino gambling in Texas. In a November 2024 interview, he remarked, “When we finished this last session, no one called and said, oh, you didn’t pass the casino bill. It’s not on anyone’s top 20 list.”
However, several polls suggest growing public support for gambling expansion. A March survey by The Dallas Morning News and the University of Texas at Tyler revealed that 57% of Texans support casino gambling, while 43% favor legalizing sports betting. This demonstrates significant momentum among voters, contradicting Patrick’s claims.
Stakeholders like Las Vegas Sands and major sportsbooks such as FanDuel are leveraging this public backing, with Sands’ Andy Abboud declaring, “We’re not leaving. We’re staying until it’s done. It’s inevitable.”
Meanwhile, opposition remains strong from conservative groups and lawmakers wary of potential social impacts, keeping the debate at a stalemate.
Responsible Gambling
While online casinos remain illegal in Texas, it’s crucial to recognize the risks associated with gambling activities, whether in neighboring states or potentially legalized markets.
Resources are available to support responsible gambling practices:
- Texas Council on Problem Gambling offers education and support for individuals facing addiction.
- National Council on Problem Gambling (1-800-522-4700) provides 24/7 assistance and self-help tools.
- Self-exclusion programs and financial limit options are commonly offered in legal gambling states to help individuals maintain control.
What’s Next for Online Gambling in TX?
The future of online gambling in Texas remains uncertain but is far from stagnant. With growing advocacy from stakeholders, including casino operators and sports teams, new legislative proposals will likely surface in upcoming sessions.
Public interest and significant economic potential make legalization a recurring topic of debate. Lawmakers may introduce voter initiatives or constitutional amendments to allow regulated online casinos.
As discussions continue, Texas’s path to legal online gambling will depend on the balance of public support, legislative priorities, and stakeholder influence.
For now, Texans await the next steps in this highly anticipated industry shift.
