Despite a totally massive sports culture, sports betting isn’t legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gambling in virtually all types and though there are signs of a change, Texans shouldn’t hold their breath awaiting lawful sports betting to arrive anytime soon.
However, there are a couple exceptions. While standard sports betting isn’t allowed, sites providing daily dream sports, for example DraftKings and FanDuel are allowed to function in the nation.
Early in 2019 a state lawmaker filed a brand new Texas sports betting bill to permit in-person and cellular sports betting and whether it looks awesome on paper, it confronts a few big challenges. More importantly in another section.
In this guide we will take a deep dip into Texas sports gambling laws to reply:
When will you be able to bet on sports lawfully in Texas?
What’s the new Texas sports gambling bill H 1275 all about?
How will people in Texas have the ability to wager on sports when it will become legal?
We’ll also delve into the questions of whether it is legal to bet on daily dream sports (DFS) at Texas and how the state’s enormous professional and college sports culture will play into the legal sports gambling industry we may one day see grow in the Lone Star State.
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Texas Sports Betting Bill Filed Feb 1, 2019 (H 1275)
On February 1, 2019, Rep. Eddie Lucio III registered H 1275, the first sports betting bill in Texas because the US Supreme Court overturned the decades-old national ban online sports betting called PASPA.
We’ll lay out the bill’s main points in a minute but first let’s discuss the main reasons this bill may have a hard time passing.
First of all, it was released by a Democrat and Texas is a staunchly Republican country. Secondly, for the bill to pass, a referendum to amend the state constitution to include sports betting has to be held. The settlement will have to pass with a two-thirds majority in the House and Senate and be approved in a voter referendum. The oldest that can occur is November, 2019.
Here are the bill’s main attributes:
Online and mobile sports gambling in Texas will be lawful.
A maximum of five permits will be marketed. Each permit will permit two online gaming website skins.
Gamblers will cover a 6.25% tax, similar to a revenue tax, on all money payable.
If the bill and resolution to amend the constitution both pass, sports gambling will be lawful in Texas on January 1, 2020.
The Current Sports Betting Situation in Texas
Estimates indicate countless dollars of tax revenue could be generated from sports gambling legalization which Texas would be the second-biggest sports betting state in the nation.
Even without online and mobile gambling, it’s estimated that Texans will wager $9 billion on sports annually. A 6.25% tax on those sales would equal more than $500 million.
The desire to get that potential earnings is butting up against a largely conservative, anti-gambling institution which will make for an interesting dynamic if this bill goes forward.
A prevailing anti-gambling attitude is not the only hurdle this invoice is going to have to clear. As you’ll read below, even if the state wanted to legalize sports betting it’d still need to amend its constitution to permit for gambling on sports.
All types of gambling, with the exception of the state lottery and horse and dog racing, is illegal in Texas.
There’s only one tribal casino in the whole country and it’s not allowed to offer casino table games, just slots.
The gambling laws are incredibly rigid from the Lone Star State and bookmaking is a Class A misdemeanor.
Despite sports betting being prohibited in Texas, the state’s biggest sports team, the Dallas Cowboys, have agreed to a sponsorship arrangement with WinStar World Casino.
With the deal, the Cowboys became the first NFL team to partner with a casino.
This does not mean legalization is coming soon to Texas, no matter how the state’s flagship sports company inking a major deal with a casino company is just another portion of the puzzle that is coming together.
Another big factor is that Texas’s neighbors including New Mexico, Louisiana, and Oklahoma either have fully fledged legalized sports gambling or have invoices in motion to legalize it. Meaning Texans will have considerable chance to take their billions of dollars and wager it out of state.
Texas Betting Laws Summary
Sports gambling is illegal in Texas.
A sports gambling bill was introduced in February of 2019 that could take effect on January 1, 2020.
While sports betting is illegal, dog and horse racing are lawful. The state lottery has been in existence since 1991.
There’s one tribal casino in Texas, the Kickapoo Lucky Eagle Casino in Eagle Pass to the Mexico border.
Daily dream sports gambling is lawful and DraftKings, FanDuel, and Yahoo! all accept players from Texas.
The History of Online Sports Betting in Texas
There’s no real sports betting history in Texas. The state has enforced among the country’s strictest group of anti-gambling laws and it goes way back. Dog and horse racing are lawful in Texas, nevertheless gamblers can only place in-person wagers. OTB gambling is not permitted.
To give the current situation some context, let’s look at the most pivotal moments in Texas’s gaming history:
1933 — Texas implements its very first Pari-Mutuel horse race gambling.
1937 — Four years to the country’s foray into legal horse racing that the tracks are shut down and gambling on the races is banned.
1971 — Charity gaming is exempted from anti-gambling laws. Two years later this ruling is overturned after more making it illegal again.
1982 — Licenses for charitable gambling are legally sanctioned. This required an amendment to the state constitution in 1980.
1987 — Pari-mutuel horse track betting return as a result of some favorable effect in a state referendum. Simulcast betting from external racetracks is released in 1991.
1988 — Casino Cruises are offered which sanction legal gaming so long as they’re in international waters. Vessels depart from the Texas coast. Operations lasted for 20 years before shutting down.
1992 — A referendum passes permitting for a state lottery which includes draws and scratch-off games.
1996 — 2002: Tribal/state compacts come to a mind as bingo halls and casinos on tribal lands are closed and reopened several times. Just one tribal casino remains to date which is owned by the Kickapoo tribe just south of San Antonio near Mexico.
2013 — Lots of bills are introduced to expand gaming in the country but do not see the light of day. Plans comprised offering video lottery terminals at racetracks and eight state-licensed casinos.
Which Online Betting Sites Are Legal in Texas?
As of now, no internet sports betting sites are legal. Taking a look at the current sports betting bill, nevertheless, it’s apparent that the future of authorized Texas sports betting will incorporate online and mobile betting choices.
The Lone Star state is exceptional in that it only has a single tribal casino, and it is situated near the Texas/Mexico border. It is a good bet that this organization will try to get involved using a land-based sportsbook and an online gaming program.
Other physical infrastructure as far as casinos is infrequent so we anticipate nearly all the action to occur online.
Like we mentioned previously, the WinStar World Casino made an official deal with the Dallas Cowboys which can be an indicator that it is considering entering the marketplace.
In addition, we expect based online sports betting sites which are already operating in different states to apply for licenses. This includes brands like BetStars, 888sport and a lot more.
If legalization will happen, check this page for expert reviews on all the best online sportsbooks in Texas.
Which Sports Can You Bet on Online in Texas?
Texas is among the most sports crazy states in the entire country, with just two NFL teams, three NBA teams, two MLB teams, two MLS teams, and also an NHL team.
And that doesn’t even tap into their huge collegiate match footprint, together with high rated teams coming from colleges such as Texas, Texas Tech, SMU, Vanderbilt, and Texas A&M.
When and if legal sports betting comes to Texas, gamblers will be able to bet on popular North American sport and nearly anything else located anywhere on the planet.
A typical menu of sport Texans will Have the Ability to wager on includes:
NFL Football
NCAA Football
NBA Basketball
NCAA Basketball
NHL Hockey
NCAA Hockey
MLB Baseball
NCAA Baseball
Australian Rules
Boxing
Cricket
Formula 1
Golf
MMA
Nascar
Rugby
Football (MLS, Premier League, Champions League, La Liga, International Competitions and more)
Tennis
Non-sports Entertainment
How to Bet on Sports Legally in Texas
Betting is presently extremely restricted in Texas, with one land tribal casino in the whole country and no bodily sportsbooks.
The sport betting legislation that’s currently in the works gives us an indication of how things will likely work in the future.
In other states that currently allow online sports betting, the practice of registering for an account, depositing money and placing legal wagers is really straightforward.
First browse reviews of all the best online sports betting sites in Texas, find one you like and then sign up for an account. You can usually make an account from everywhere but you have to be in Texas to actually make stakes.
You’re going to have to supply some personal info and once your account is installed, you can deposit cash using lots of popular banking options. You can frequently get in on special welcome bonuses as well as other offers when you deposit.
When the money is on your accounts, just find the sport you want to wager on and place your bet.
Are Daily Fantasy Sports Legal in Texas?
Players may place wagers at popular DFS betting sites including FanDuel and DraftKings, however there is a bit of a legal grey area in regards to if it is really valid or not.
While the state doesn’t press charges against everyday fantasy websites, there have been unsuccessful invoices to fully legalize DFS previously.
The two FanDuel and DraftKings accept Texas players and the country seems content with allowing this play out at a state of lawful flux until it fully believes their next steps online sports gambling.
Concerning safety, the Fantasy Sports Trade Association and the US Gaming Commission are responsible for all DFS activity so at the end of the day, funds on the websites are 100% secure.
What’s the Future of Online Sports Betting in Texas?
While a dark place for legal gambling, Texas’s potential so far as sports betting goes is becoming somewhat brighter.
There’s still a ways to go but with the introduction of a new bill to legalize sports betting we’re starting to see a glimmer of light at the end of the tunnel.
Estimates range, but the American Sports Betting Coalition considers legalized sports betting could inject almost $2 billion dollars to the local market and create over 9,000 jobs. With Texans already gambling on sports illegally and in other nations, new legislation may actually have a chance of death.
On the other side of the argument are groups such as the General Baptist Convention of Texas that consists of approximately three million Texans. Not only are they contrary to legal sports gambling, they want to eliminate the entire state lottery.
Rob Kohler is a lobbyist for the Baptist Convention and states the proposed tax on sports gambling will hurt the weakest people in the state the most, like the lottery.
«It would make a sales tax deduction using its regressivity. So, is it smart for us to finance our government together with all the folks that we are giving money to help? No,» said Kohler.
However, the State lottery failed to generate $1.3 billion in 2017 for the nation’s education system. The tax revenue from sports gambling will be even bigger.
Questions Stay for Legal Texas Sports Betting
Whether sports betting is eventually legalized in Texas depends upon lots of different factors and nobody can predict exactly how it’s going to play out.
Our best guess is it is going to happen but it may not be the recent sports betting bill which gets the job done.
However, if everything goes perfectly and H 1275 moves with a change to the state constitution, Texans will be able to start gambling on sports legally as early as January 1, 2020.
The sheer dimensions of the potential industry and gains, literally tens of thousands of dollars, is the largest reason we may see this laws fast-tracked.
Meanwhile, sports bettors in Texas can gamble on DFS, or make the trip to one of a few nearby states that are already legalizing full-on sports betting.
2019 will be a significant year for online sportsbooks in Texas and we’re going to post major developments as they happen on this page.
Additionally, browse our state by state guides to legal sports gambling in the united states for more information on other areas of the country.
