Despite a totally massive sports culture, sports gambling isn’t legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gambling in almost all forms and although there are indications of a change, Texans shouldn’t hold their breath awaiting legal sports gambling to arrive anytime soon.
However, there are a couple of exceptions. While standard sports gambling is not permitted, websites providing daily fantasy sports, such as DraftKings and FanDuel are allowed to function in the nation.
Early in 2019 a state lawmaker registered a new Texas sports betting bill to allow in-person and cellular sports gambling and whether it looks amazing on paper, it confronts a few big challenges. More importantly in another section.
In this guide we’ll take a deep dive into Texas sports gambling laws to answer:
When are you going to be able to bet on sports lawfully in Texas?
What’s the brand new Texas sports gambling bill H 1275 about?
How will people in Texas have the ability to wager on sports when it becomes legal?
We’ll also delve into the questions of if it’s lawful to bet on daily dream sports (DFS) in Texas and how the nation’s enormous professional and college athletics culture will play into the legal sports gambling industry we will one day see develop 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 filed H 1275, the first sports betting bill in Texas because the US Supreme Court overturned the decades-old federal ban on sports gambling called PASPA.
We’ll lay the bill’s most important points in a minute but first let’s discuss the key reasons this bill may have a hard time passing.
To start with, it had been introduced by a Democrat and Texas is a staunchly Republican country. Secondly, for the bill to pass, a referendum to amend the state constitution to add sports gambling must be held. The settlement will have to pass by 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 is going to be lawful.
A maximum of five permits will be sold. Each license will allow two online gaming website skins.
Gamblers will cover a 6.25% tax, very similar to a revenue tax, on all money wagered.
In the event the resolution and bill to amend the constitution pass, sports betting will be legal in Texas on January 1, 2020.
The Recent Sports Betting Situation in Texas
Estimates indicate billions of dollars of tax revenue could be produced from sports gambling legalization which Texas are the second-biggest sports gambling state in the nation.
Even without internet and mobile betting, it’s projected that Texans will wager $9 billion on sports annually. A 6.25percent tax on these 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 result in an interesting dynamic if this bill goes forward.
A prevailing anti-gambling mindset is not the only hurdle this bill is going to have to clear. As you’ll read about below, even if the country wanted to legalize sports betting it would still must amend its constitution to allow for betting on sports.
All sorts of gaming, with the exception of this state lottery and dog and horse racing, is illegal in Texas.
There is but one tribal casino in the whole state and it isn’t permitted to provide casino table games, just slots.
The gambling laws are amazingly stiff from the Lone Star State and bookmaking is a Class A misdemeanor.
Despite sports gambling being prohibited in Texas, the nation’s most significant 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 doesn’t mean legalization is coming shortly to Texas, however the country’s flagship sports company inking a major deal with a casino company is another portion of the puzzle that is coming together.
Another large element is that Texas’s neighbors such as New Mexico, Louisiana, and Oklahoma either have fully fledged legalized sports betting or have bills in motion to legalize it. Meaning Texans will have ample chance to take their billions of dollars and wager it from state.
Texas Betting Laws Summary
Sports betting is illegal in Texas.
A sports betting bill was introduced in February of 2019 that may take effect on January 1, 2020.
While sports gambling is illegal, horse and dog 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 on the Mexico border.
Daily fantasy sports gambling is legal and DraftKings, FanDuel, and Yahoo! all accept players from Texas.
The History of Online Sports Betting at Texas
There’s no actual sports gambling history in Texas. The state has enforced one of the nation’s strictest group of anti-gambling laws and it goes far back. Dog and horse racing are all legal in Texas, nevertheless gamblers can only put in-person wagers. OTB gambling is not permitted.
To Provide the current situation some context, let us look at the most pivotal moments in Texas’s gambling history:
1933 – Texas implements its very first Pari-Mutuel horse race betting.
1937 – Four years into the state’s foray into lawful horse racing that the paths are closed down and gambling on the races is banned.
1971 – Charity gaming is exempted from anti-gambling legislation. A couple of years later this judgment is overturned once more making it illegal again.
1982 – Licenses for charitable gaming are legally sanctioned. This took an amendment to the state constitution in 1980.
1987 – Pari-mutuel horse track betting return thanks to a favorable effect in a state referendum. Simulcast betting from external racetracks is introduced 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 allowing for a state lottery which includes pulls and scratch-off games.
1996 — 2002: Tribal/state compacts come to a head as bingo halls and casinos on tribal lands are closed and reopened several times. Just one tribal casino stays to date which is possessed by the Kickapoo tribe just south of San Antonio near Mexico.
2013 – Many bills are introduced to expand gambling in the country but don’t find the light of day. Plans included offering video lottery terminals at racetracks and eight state-licensed casinos.
Which Online Betting Sites Are Legal in Texas?
As of this moment, no online sports betting sites are lawful. Looking at the present sports betting bill, nevertheless, it’s clear that the future of authorized Texas sports betting will include online and mobile gambling options.
The Lone Star state is unique as it only has a single tribal casino, and it is located near the Texas/Mexico border. It’s a fantastic bet that this business will attempt to become involved with a land-based sportsbook and an online betting app.
Other physical infrastructure as far as casinos is infrequent so we expect nearly all the actions to occur online.
Like we mentioned before, the WinStar World Casino made a formal deal with the Dallas Cowboys which may be an indication that it’s interested in going into the market.
We also expect established online sports betting sites which are already operating in other states to apply for licenses. Including brands such as BetStars, 888sport and a lot more.
If legalization does occur, check this page for specialist reviews on all the best online sportsbooks in Texas.
Which Sports Could You Bet Online at Texas?
Texas is among the very sports crazy states in the entire country, with two NFL teams, three NBA teams, two MLB teams, two MLS teams, and also an NHL team.
And that does not even tap into their huge collegiate sport footprint, together with high rated teams coming from colleges such as Texas, Texas Tech, SMU, Vanderbilt, and Texas A&M.
If and when legal sports gambling comes to Texas, gamblers will be able to bet on popular North American sport and pretty much anything else found anywhere on the planet.
A typical menu of sports Texans will Have the Ability to wager on includes:
Football (MLS, Premier League, Champions League, La Liga, International Competitions and much more )
How to Bet on Sports Legally in Texas
Betting is currently extremely restricted in Texas, with a single property tribal casino in the entire country and no physical sportsbooks.
The sport gambling legislation that’s currently in the works gives us a sign of how things will probably work in the future.
In other states that already allow online sports betting, the process of registering for an account, depositing money and placing legal wagers is really simple.
First read reviews of all the best online sports betting sites in Texas, find one you enjoy and then sign up for an account. You can usually make an account from anywhere but you must be in Texas to really make bets.
You’ll have to provide some personal info and after your account is set up, you can deposit money using lots of popular banking choices. You can frequently get in on particular welcome bonuses as well as other supplies when you deposit.
Once the cash is on your account, just discover the game you need to wager on and place your wager.
Are Daily Fantasy Sports Legal in Texas?
Players may place wagers at favorite DFS gaming websites such as FanDuel and DraftKings, but there’s a bit of a legal grey area in regards to if it is really legal or not.
While the state doesn’t press charges against everyday dream sites, there have been unsuccessful bills to fully legalize DFS in the past.
The two FanDuel and DraftKings accept Texas players along with the country seems content with allowing this play out in a state of legal flux until it completely believes their next steps on sports betting.
Concerning security, the Fantasy Sports Trade Association and the US Gaming Commission are responsible for all DFS activity so at the end of the afternoon, funds on the websites are 100% protected.
What’s the Future of Online Sports Betting at Texas?
While a dark location for legal gambling, Texas’s future as far as sports betting goes is becoming a bit brighter.
There’s still a ways to go but with the debut of a new bill to legalize sports gambling we are starting to see a glimmer of light at the end of the tunnel.
Estimates range, but the American Sports Betting Coalition believes legalized sports betting could inject almost $2 billion dollars into the local economy and produce over 9,000 jobs. With Texans already betting on sports illegally and in other nations, new laws may actually have a chance of passing.
On the other side of the debate are groups like the General Baptist Convention of Texas that is made up of roughly three million Texans. Not only are they against legal sports betting, they want to get rid of the entire state lottery.
Rob Kohler is a lobbyist for the Baptist Convention and says the tax on sports betting will hurt the weakest people in the country the most, like the lottery.
“It’d create a sales tax deduction using its regressivity. So, is it smart for us to fund our government with all the people that we’re giving money to assist? No,” said Kohler.
On the other hand, the State lottery did generate $1.3 billion in 2017 for the state’s education system. The taxation revenue from legal sports betting will be even bigger.
Questions Remain for Legal Texas Sports Betting
Whether sports gambling is finally legalized in Texas depends on lots of different variables and nobody can predict exactly how it’s likely to perform.
Our very best guess is that it is going to happen but it might not be the current sports gambling bill that gets the work done.
However, if everything goes perfectly and H 1275 moves with an amendment to the state constitution, Texans will have the ability to get started gambling on sports lawfully as early as January 1, 2020.
The sheer dimensions of the potential industry and gains, literally billions of dollars, is the largest reason we might see this legislation fast-tracked.
Meanwhile, sports gamblers in Texas can bet on DFS, or make the excursion to one of a few nearby countries which are already legalizing full-length sports gambling.
2019 will be a significant year for online sportsbooks in Texas and we’re going to post major developments as they occur on this particular page.
Also, browse our state by state guides to legal sports betting in the US for more information on other parts of the country.