Sports betting has become a major industry in the United States, generating billions of dollars in revenue and transforming the way fans engage with sports. Since the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018, individual states have been given the authority to legalize and regulate sports betting. While many states have embraced the industry, Texas, one of the largest and most sports-obsessed states, has yet to legalize sports betting.
With a massive population, strong professional and college sports culture, and a growing interest in betting, Texas is seen as one of the most lucrative potential markets for Sports Betting in Texas However, political resistance, constitutional restrictions, and moral concerns have slowed the process.
This article explores the current legal status of sports betting in Texas, the major obstacles to legalization, the economic potential of a regulated sports betting market, and what the future may hold for the industry in the Lone Star State.
Current Legal Status of Sports Betting in Texas
As of 2025, sports betting remains illegal in Texas. The state has some of the most restrictive gambling laws in the country, with only a few exceptions:
- The Texas Lottery, which was established in 1991.
- Pari-mutuel wagering on horse racing, although the industry has struggled in recent years.
- Tribal gaming, but only on a limited scale at specific Native American reservations.
Texas does not allow commercial casinos, and most forms of gambling—including sports betting—are explicitly prohibited under state law.
Attempts to Legalize Sports Betting
In recent years, there have been multiple legislative attempts to legalize sports betting in Texas.
- 2021: A bill to legalize sports betting, backed by professional sports franchises, was introduced but failed to gain enough support.
- 2023: Another round of bills was proposed, including an effort to amend the state constitution, but none made it past committee hearings.
- 2025: Advocates are expected to push for legalization again, but significant challenges remain.
One of the biggest hurdles is that Texas law requires a constitutional amendment to expand gambling, meaning that even if the Legislature passes a sports betting bill, voters would still need to approve it through a statewide referendum.
Challenges to Legalizing Sports Betting in Texas
1. Political Resistance
Texas has a long history of opposition to gambling, particularly among conservative lawmakers who argue that expanding gambling could lead to social issues such as addiction, crime, and financial instability. Many influential political leaders, including Governor Greg Abbott and Lt. Governor Dan Patrick, have historically opposed gambling expansion, making it difficult to pass sports betting legislation.
2. Religious and Moral Opposition
Many religious and family-values groups strongly oppose gambling, including sports betting. They argue that legalized gambling leads to increased addiction rates, family breakdowns, and financial problems for vulnerable individuals. These groups hold significant influence in Texas politics, making it challenging for pro-gambling advocates to gain momentum.
3. Constitutional Barriers
The Texas Constitution explicitly bans most forms of gambling. To legalize sports betting, lawmakers would need to pass a constitutional amendment, which requires:
- A two-thirds majority vote in both the Texas House and Senate.
- Approval from a majority of Texas voters in a statewide referendum.
This high threshold has made it difficult for gambling expansion efforts to succeed.
4. Competition from Neighboring States and Tribal Interests
Texas has three federally recognized Native American tribes that operate limited gaming facilities. These tribes might push for exclusive rights to sports betting if it is legalized, which could complicate negotiations. Additionally, casino operators in nearby states like Louisiana and Oklahoma benefit from Texans crossing state lines to gamble. These states have a financial interest in keeping Texas’ gambling laws restrictive.
Economic Potential of Legal Sports Betting in Texas
If Texas were to legalize sports betting, it could quickly become one of the largest sports betting markets in the U.S. due to its massive population (over 30 million residents) and passionate sports culture.
1. Tax Revenue and Economic Growth
Industry experts estimate that a regulated sports betting market in Texas could generate:
- Over $5 billion in annual wagers.
- Between $400 million and $700 million in annual tax revenue.
This tax revenue could be used to fund essential state programs, such as:
- Education and public schools.
- Infrastructure improvements.
- Healthcare and social services.
2. Job Creation
Legalized sports betting would create thousands of jobs across various sectors, including:
- Retail sportsbook operations at casinos, racetracks, and stadiums.
- Technology and software development for online betting platforms.
- Customer service and marketing roles for sportsbook operators.
3. Consumer Protection
Currently, many Texans turn to unregulated offshore sportsbooks to place their bets. These platforms operate without oversight, making them risky for consumers. If Texas legalizes sports betting, it would:
- Ensure fair play and responsible gambling measures.
- Protect consumers from fraudulent or predatory operators.
- Allow the state to regulate and tax the industry effectively.
How Sports Betting Could Be Implemented in Texas
If Texas were to legalize sports betting, lawmakers would need to determine how the industry would be regulated. The three most common models include:
1. Online and Mobile Sports Betting
- Would allow bettors to place wagers from their smartphones or computers.
- States like New York and New Jersey have seen massive success with online betting, with over 80% of bets placed through mobile apps.
- Companies like FanDuel, DraftKings, BetMGM, and Caesars would likely enter the Texas market.
2. Retail Sportsbooks at Casinos and Racetracks
- Would require bettors to visit a physical location to place their bets.
- Could be integrated into existing racetracks, tribal casinos, or new casino developments.
- Would create local jobs and boost tourism.
3. A Hybrid Model (Most Likely)
- Would allow both online betting and retail sportsbooks.
- This approach has been successful in many other states and would maximize accessibility and revenue.
The Future of Sports Betting in Texas
Will Sports Betting Be Legalized in Texas?
While challenges remain, there are signs that Texas could move toward legalizing sports betting in the next few years. Several key factors could drive this change:
- Public Support – Polls show that a growing number of Texans support legalizing sports betting.
- Professional Sports Teams’ Advocacy – Texas teams like the Dallas Cowboys, Houston Texans, San Antonio Spurs, and Houston Astros are pushing for legalization.
- Economic Incentives – As more states legalize sports betting, Texas risks losing out on millions of dollars in potential tax revenue to neighboring states.
Potential Timeline for Legalization
- 2025 Legislative Session: Another attempt at passing a sports betting bill.
- 2026 Ballot Measure: If a bill passes, Texas voters could decide in a statewide referendum.
- 2027 and Beyond: If approved, sports betting could launch in Texas within 1–2 years.
Conclusion
Texas remains one of the largest untapped sports betting markets in the U.S. While political and moral opposition have slowed progress, the economic benefits and increasing public support make legalization a strong possibility in the coming years.
With billions of dollars in potential revenue, thousands of jobs, and safer betting options for consumers, legalizing sports betting in Texas could be a game-changer. The question is no longer if Texas will legalize sports betting, but when and how it will be implemented.
