Texas Sports Gambling Legal Status

Is Online Sports Betting Legal In Texas? Legal Update

No, online sports betting is not legal in Texas.

With 39 U.S. states now having some form of legalized sports betting (Missouri, the most recent to pass legislation, will go live in 2025), there are only a handful of states where sports betting is illegal. That doesn’t mean that people aren’t betting in those states, it just means they’re doing so illegally – either through a neighborhood bookie or an offshore website.

Of the 11 remaining states, Texas – the second-largest state in the U.S. by population – is by far the second-biggest potential new market behind California.

You can be forgiven if you don’t cover the Texas legislature too closely – especially if you don’t live in the state – but unlike other states, the legislature only meets every other year. That quirk makes passing legislation related to sports betting a little trickier, as the next session doesn’t begin until Jan. 14, 2025. And usually even after legislation is passed or a voter referendum passes in a state, it’s nearly a year before sports betting is operational in said state.

In this article, we’ll look at how close Texas is to sports betting legalization and the economic impact it could have for the Lone Star State.

 

When will sports betting be legal in texas?

House Bill 1942, a piece of legislation that would have legalized sports betting in the state, was passed by the House in Texas in 2023, before dying in the Senate. One major issue for Texas is Lt. Gov. Dan Patrick. Patrick, who is in charge of the state Senate is a staunch opponent of sports betting and gambling expansion. Legalization appears to be a long shot in Texas with him in office.

Though a glimmer of hope has risen over the horizon, Governor Greg Abbott has stated that he isn't opposed to legalized gambling in Texas. With the state's highest-ranking Republican on board, Patrick, who's often cited a lack of support for legalized betting by the Texas Senate (and specifically his Republican members) as an excuse to delay legalization, might have a change of heart. 

Alongside Greg Abbott's support, Patrick will see a bill tabled to legalize sports gambling in Texas by Senator Carol Alvarado; joint resolution 16 which received its first reading on February 3rd, 2025.

And look, a majority of Texans support legalized gambling. A recent survey by the University of Houston showed that 73% of respondents supported casino gambling and 60% supported online sports gambling. The deck is stacking up against Patrick and 2025 could easily be the year legalization happens in Texas.

The soonest a bill legalizing sports gambling in Texas could be put to a vote is Nov. 2025, which means it would be implemented late in 2026 at the earliest. If that doesn’t happen, a bill in 2027 and implementation in 2028 would be the soonest possibility for legalization.

What would the economic impact of sports betting legalization be for Texas?

The research firm Eilers & Krejcik Gaming (EKG) published a recent study estimating the potential impact of legalizing sports betting in Texas. If Texas allowed mobile sports wagering – and keep in mind that neighboring states like New Mexico and Oklahoma don’t have mobile betting – the company estimated that the state would bring in a monstrous $32 billion in handle and $3.68 billion in gross gaming revenue.

Using a 15% tax rate, the report estimated legalization would create 8,000 jobs and, after promos and federal taxes were deducted, would result in roughly $360 million in direct tax revenue for the state in a mature market. If the state decided to ban betting on college prop bets (25% less handle) or Texas college home teams (7.5%), both would be detrimental to the overall amount of handle and taxes generated. 

Politics aside, Texas is a hugely populated market with multiple NBA and NFL franchises, and popular college fan bases (Texas, Texas Tech, Texas A&M, etc.). It will be a game-changing state for the U.S. market once it’s live.

What Betting Apps are legal in texas?

If you live in Texas and want to place a legal wager on your favorite sport - try one of the DFS sites below! Daily Fantasy provides bettors with a safe alternative to offshore sportsbooks, with the same adrenaline rush you get from having some skin in the game.

SportsbooksSame Game ParlayEarly PayoutOdds BoostsLive BettingLive StreamingSign-up BonusLoyalty Program24/7 Help Chat 

 

If you landed here and aren't located in Texas or have upcoming travel plans, check out the legal sportsbooks in your State below:

Back to Top