Is Online Sports Betting Legal in Texas?

Despite a totally massive sports culture, sports gambling is not legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gambling in almost all types and although there are indications of a change, Texans shouldn’t hold their breath waiting for lawful sports betting to arrive anytime soon.
However, there are a couple of exceptions. While standard sports gambling is not allowed, websites providing daily fantasy sports, such as DraftKings and FanDuel are allowed to operate in the state.
Early in 2019 a state lawmaker registered a brand new Texas sports betting bill to allow in-person and cellular sports betting and whether it looks awesome on paper, it faces a couple of big challenges. More on that in the next section.
In this guide we will Have a deep dip into Texas sports gambling laws to reply:
When are you going to be able to wager on sports legally in Texas?
What’s the brand new Texas sports betting bill H 1275 all about?
How will people in Texas be able to wager on sports if it will become legal?
We’ll also delve into the questions of if it is lawful to bet on daily fantasy sports (DFS) in Texas and the way the state’s enormous professional and college athletics culture will play into the legal sports betting 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)
About February 1, 2019, Rep. Eddie Lucio III registered H 1275, the first sports gambling bill in Texas since the US Supreme Court overturned the decades-old national ban on sports betting known as PASPA.
We’ll lay out the bill’s main points in a minute but first let’s discuss the key reasons this bill may have difficulty passing.
First of all, it was released by a Democrat and Texas is a staunchly Republican state. Secondly, for the bill to pass, a referendum to amend the state constitution to add sports betting must be held. The resolution will need to pass by a two-thirds majority in the House and Senate and be approved in a voter referendum. The earliest that can occur is November, 2019.
Here are the bill’s main features:
Online and mobile sports gambling in Texas is going to be legal.
A maximum of five licenses will be sold. Each permit will allow two online betting site skins.
Gamblers will cover a 6.25% tax, similar to a sales tax, on all money payable.
In the event the resolution and bill to amend the constitution both pass, sports gambling will be legal in Texas on January 1, 2020.
The Current Sports Betting Situation at Texas
Estimates indicate billions of dollars of tax revenue could be generated from sports gambling legalization which Texas would be the second-biggest sports gambling state in the country.
Even without internet and mobile betting, it is estimated that Texans will wager $9 billion on sports yearly. A 6.25percent tax on these sales would equal more than $500 million.
The urge to get that potential earnings is butting up against a mostly conservative, anti-gambling institution which will make for an interesting dynamic if this bill goes forward.
A prevailing anti-gambling mindset is not the only hurdle this invoice is going to have to clear. As you’ll read about below, even if the state wanted to legalize sports betting it would still must amend its constitution to allow for betting on sports.
All types of gaming, with the exclusion of the state lottery and horse and dog racing, is prohibited in Texas.
There’s but one tribal casino in the entire state and it’s not permitted to offer casino table games, just slots.
The gambling laws are amazingly stiff in the Lone Star State and bookmaking is a Class A misdemeanor.
Despite sports gambling 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 doesn’t 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 part of the puzzle that’s coming together.
Another large factor is that Texas’s neighbors such as New Mexico, Louisiana, and Oklahoma either have fully fledged legalized sports betting or have invoices in movement to legalize it. That means Texans will have considerable opportunity to take their billions of dollars and bet it from state.
Texas Betting Laws Summary
Sports gambling is currently illegal in Texas.
A sports gambling bill was introduced in February of 2019 which may take effect on January 1, 2020.
While sports betting is illegal, dog and horse racing are lawful. The state lottery has been around 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 lawful 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 country’s strictest set of anti-gambling laws and it goes way back. Dog and horse racing are all legal in Texas, however gamblers can only place in-person wagers. OTB betting is not allowed.
To Provide the present situation some context, let’s look at the most crucial moments in Texas’s gambling history:
1933 – Texas implements its first Pari-Mutuel horse race gambling.
1937 – Four years into the state’s foray into legal horse racing that the tracks are shut down and gaming on the races is banned.
1971 – Charity gaming is exempted from anti-gambling legislation. A couple of years later this ruling is overturned after more making it illegal .
1982 – Licenses for charitable gaming are legally sanctioned. This required a change to the state constitution in 1980.
1987 – Pari-mutuel horse track betting return as a result of some favorable result in a state referendum. Simulcast betting from outside racetracks is introduced in 1991.
1988 – Casino Cruises are available which sanction legal gaming as long as they are in international waters. Vessels depart from the Texas shore. Operations lasted for 20 years before shutting down.
1992 – A referendum passes allowing for a state lottery that 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. Only one tribal casino remains to date that’s possessed by the Kickapoo tribe just south of San Antonio near Mexico.
2013 – Lots of bills are introduced to expand gaming in the state but do not 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 now, no internet sports gambling sites are lawful. Taking a look at the current sports gambling bill, however, it’s clear that the future of legal Texas sports gambling will incorporate online and mobile betting choices.
The Lone Star state is exceptional in that it only has a single tribal casino, and it’s located near the Texas/Mexico border. It’s a fantastic bet that this business will try to become involved with a land-based sportsbook and an internet gaming program.
Other physical infrastructure so far as casinos is infrequent so we expect nearly all the actions to happen online.
Like we mentioned previously, the WinStar World Casino created an official deal with the Dallas Cowboys which can be an indication that it’s considering entering the marketplace.
In addition, we expect based online sports betting sites which are already working in different states to apply for licenses. Including brands such as BetStars, 888sport and many more.
If legalization will occur, check this page for specialist reviews on all of the best online sportsbooks in Texas.
Which Sports Can You Bet Online in Texas?
Texas is among the very sports crazy states in the whole nation, with 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 sport footprint, with top ranked teams coming from colleges such as Texas, Texas Tech, SMU, Vanderbilt, and Texas A&M.
If and when legal sports betting comes to Texas, gamblers will be able to wager on popular North American sport and pretty much anything else found anywhere in the world.
A typical menu of sports Texans will be able to wager on includes:
NFL Football
NCAA Football
NBA Basketball
NCAA Basketball
NHL Hockey
NCAA Hockey
MLB Baseball
NCAA Baseball
Australian Rules
Formula 1
Football (MLS, Premier League, Champions League, La Liga, International Competitions and more)
Non-sports Entertainment
How to Bet on Sports Legally in Texas
Gambling is currently extremely restricted in Texas, with a single property tribal casino in the whole country and no physical sportsbooks.
The sport gambling legislation that’s currently in the works gives us an indication of how things will likely work later on.
In other states that already allow online sports betting, the process of signing up for an account, depositing money and placing legal wagers is actually straightforward.
First read reviews of all the best online sports gambling sites in Texas, find one you enjoy and then register for an account. You can usually create an account from anywhere but you must be in Texas to really make bets.
You’re going to have to supply some personal information and once your account is installed, you can deposit cash using tons of popular banking choices. You may often get in on particular welcome bonuses and other supplies when you deposit.
When the cash is in your accounts, just find the game that you want to bet on and place your bet.
Are Daily Fantasy Sports Legal in Texas?
Players can place wagers at popular DFS gaming websites including FanDuel and DraftKings, however there is a small legal grey area when it comes to if it’s actually valid or not.
While the state does not press charges against daily fantasy sites, there have been ineffective bills to fully legalize DFS previously.
Both FanDuel and DraftKings accept Texas players along with the state seems content with allowing this play out in a country of legal flux until it fully considers their next steps on sports gambling.
In terms of safety, the Fantasy Sports Trade Association and the US Gambling Commission are responsible for many DFS action so at the end of the day, funds on the websites are 100% secure.
What Is the Future of Online Sports Betting at Texas?
While historically a dark place for lawful gambling, Texas’s future as far as sports gambling 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 are starting to see a glimmer of light at the end of the tunnel.
Estimates vary, but the American Sports Betting Coalition considers legalized sports gambling could inject nearly $2 billion dollars into the local economy and produce over 9,000 jobs. With Texans already betting on sports and in other nations, new legislation may actually have a chance of passing.
On the other side of the argument are groups like the General Baptist Convention of Texas which is made up of approximately three million Texans. Not only are they against legal sports gambling, they wish to get rid of the entire state lottery.
Rob Kohler is a lobbyist for the Baptist Convention and says the tax on sports gambling will hurt the poorest people in the country the most, like the lottery.
„It would create a sales tax blush with its regressivity. So, is it smart for us to finance our government together 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 nation’s education system. The taxation revenue from legal sports gambling will be even larger.
Questions Stay for Legal Texas Sports Betting
Whether sports betting is eventually legalized in Texas depends on plenty of different factors and no one can predict precisely how it’s going to play out.
Our best guess is it is going to occur but it might not be the current sports betting bill that gets the job done.
But if all goes perfectly and H 1275 moves with a change to the state constitution, Texans will have the ability to start gambling on sports lawfully as early as January 1, 2020.
The sheer dimensions of the possible industry and profits, literally tens of thousands of dollars, is the largest reason we might observe this legislation fast-tracked.
Meanwhile, sports bettors in Texas can gamble on DFS, or even make the trip to among a couple of nearby countries that are already legalizing full-on sports betting.
2019 will be an important year for internet sportsbooks in Texas and we’re going to post big developments as they happen on this page.
Additionally, browse our country by state guides to legal sports gambling in the US for more information on other parts of the country.

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