Sports betting has become a booming industry in the United States, generating billions of dollars in revenue and transforming the way fans engage with their favorite teams. Since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, more than 30 states have legalized sports betting in some form. However, Texas—despite being home to some of the most passionate sports fans and major professional franchises—has yet to fully embrace legal sports betting.

The Lone Star State is known for its conservative stance on gambling, and despite numerous attempts to pass sports betting legislation, it remains illegal as of 2025. However, with increasing public support, growing pressure from sports franchises and betting operators, and the success of legalized sports betting in neighboring states, the future of Sports Betting in Texas is a topic of growing debate.

This article explores the current legal status of sports betting in Texas, the key challenges preventing its legalization, the potential economic benefits, and what the future might hold for the industry in the state.

Current Legal Status of Sports Betting in Texas

Is Sports Betting Legal in Texas?

No, sports betting is not yet legal in Texas. The state’s gambling laws are among the strictest in the country, with only a few exceptions:

• The Texas Lottery, which was established in 1991.
• Pari-mutuel betting on horse and greyhound racing (though dog racing is now banned).
• Tribal gaming at a limited number of Native American casinos.

Despite these exceptions, sports betting remains prohibited. Texans looking to place bets on sports must travel to nearby states where it is legal (such as Louisiana or Arkansas) or turn to offshore sportsbooks, which operate in a legal gray area.

Previous Attempts to Legalize Sports Betting

Several attempts have been made to legalize sports betting in Texas, but none have succeeded.

• 2021: Lawmakers introduced multiple sports betting bills, but they failed to gain enough traction in the conservative Texas Legislature.
• 2023: New proposals emerged, including a bill backed by major Texas sports franchises, but they once again failed to pass.
• 2025: A new legislative session presents another opportunity, but legalization remains uncertain.

One major obstacle is that gambling expansion in Texas requires a constitutional amendment, which means a bill must pass both chambers of the Legislature with a two-thirds majority before being placed on a public ballot for voter approval.

Challenges Preventing Sports Betting Legalization in Texas

Despite the economic potential of sports betting, several obstacles have prevented legalization in Texas.

1. Political and Religious Opposition

Texas is a deeply conservative state, and many lawmakers oppose gambling on moral and religious grounds. Influential groups, such as religious organizations and family-values coalitions, argue that legalizing sports betting would increase gambling addiction and related social issues.

2. Constitutional Barriers

Texas law does not currently allow for sports betting. To legalize it, lawmakers must pass a constitutional amendment, which requires:

• Approval from two-thirds of both the House and Senate.
• A public vote in a statewide referendum.

Given the divided opinions on gambling, achieving this level of political consensus has proven difficult.

3. Competition from Native American Tribes and Out-of-State Casinos

Legalizing sports betting in Texas could disrupt existing gaming operations, particularly those run by Native American tribes. These tribes have an interest in maintaining control over gambling within their territories, and they may resist efforts that allow large commercial sportsbooks to enter the market.

Additionally, casino operators in neighboring states like Louisiana and Oklahoma benefit from Texas residents traveling across state lines to gamble. These states may lobby against Texas legalizing sports betting to protect their own revenue streams.

Potential Economic Benefits of Legal Sports Betting in Texas

Despite these challenges, the economic benefits of legalizing sports betting are too significant to ignore. If Texas were to legalize sports betting, it could quickly become one of the largest sports betting markets in the United States.

1. Increased Tax Revenue

States that have legalized sports betting have seen hundreds of millions of dollars in tax revenue. For example:

• New York collected over $700 million in sports betting tax revenue in its first year.
• New Jersey, one of the most successful sports betting states, generates more than $1 billion in annual sports betting handle.

Given Texas’ large population (30+ million people) and strong sports culture, analysts estimate that legal sports betting could generate over $500 million in annual tax revenue for the state.

2. Job Creation and Economic Growth

Legalizing sports betting would create thousands of jobs in Texas, including:

• Retail sportsbook employees at casinos and sports venues.
• Tech and software developers for online betting platforms.
• Customer service and marketing professionals working for sportsbook operators.

Additionally, legalized sports betting would increase tourism, as major cities like Dallas, Houston, San Antonio, and Austin could attract more visitors looking for sports betting experiences.

3. Consumer Protection and Regulation

Currently, many Texans place bets through unregulated offshore sportsbooks, which operate without oversight. These sites often lack consumer protections, making it difficult for bettors to:

• Withdraw winnings.
• Ensure fair odds.
• Get assistance in cases of disputes.

Legalizing and regulating sports betting would protect consumers by ensuring fair play, responsible gambling measures, and access to licensed betting platforms.

How Sports Betting Could Be Implemented in Texas

If Texas legalizes sports betting, lawmakers will need to decide how it will be regulated. There are three main models to consider:

1. Online and Mobile Betting

Many states have embraced online sports betting through apps like FanDuel, DraftKings, and BetMGM. This would allow Texans to place bets from their phones without needing to visit a physical sportsbook.

2. Retail Sportsbooks

Retail sportsbooks could be established at casinos, racetracks, and sports stadiums. This model would create jobs and boost local businesses but might limit accessibility compared to online betting.

3. A Hybrid Model

The most likely approach would be a hybrid model, allowing both:

• In-person betting at licensed venues (casinos, racetracks, stadiums).
• Online betting through licensed sportsbooks.

This model would maximize revenue while offering convenience for bettors.

What’s Next for Sports Betting in Texas?

The next opportunity for Texas to legalize sports betting will likely come in the 2025 legislative session. Several key factors could influence the outcome:

• Public Support: A growing number of Texans support legal sports betting, and a successful ballot measure could push lawmakers to act.
• Sports Franchise Involvement: Texas teams like the Dallas Cowboys, Houston Texans, and San Antonio Spurs support sports betting, adding pressure on legislators.
• Influence of Neighboring States: As more states legalize sports betting, Texas risks losing revenue to Louisiana, Arkansas, and New Mexico.

If lawmakers can pass a constitutional amendment, the issue could be placed on the 2026 statewide ballot, allowing voters to decide.

Conclusion

Texas remains one of the largest untapped sports betting markets in the U.S. While political and legal challenges have slowed progress, public demand and economic incentives make it increasingly likely that sports betting will eventually be legalized.

If Texas follows the lead of other states, it could generate hundreds of millions in tax revenue, create thousands of jobs, and provide a safer betting environment for residents. The question is no longer if Texas will legalize sports betting, but when and how.

With the 2025 legislative session approaching, all eyes will be on Texas lawmakers to see if they will finally bring sports betting to the Lone Star State.