Despite an absolutely enormous sports culture, sports betting isn’t legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gaming in virtually all forms and though there are signs of a change, Texans should not hold their breath awaiting lawful sports gambling to arrive anytime soon.
However, there are a couple exceptions. While standard sports gambling isn’t allowed, sites providing daily fantasy sports, for example DraftKings and FanDuel are permitted to operate in the nation.
Early in 2019 a state lawmaker registered a new Texas sports betting bill to permit in-person and cellular sports gambling and while it looks amazing on paper, it confronts a few big challenges. More importantly in the next section.
In this guide we’ll take a deep dive into Texas sports gambling laws to answer:
When will you be able to bet on sports lawfully in Texas?
What’s the brand new Texas sports betting bill H 1275 about?
How will people in Texas have the ability to wager on sports if it will become legal?
We’ll also delve into the questions of whether it is legal to bet on daily dream sports (DFS) at Texas and how the state’s enormous professional and college sports culture will play into the legal sports betting industry we will one day see grow 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 betting bill in Texas since the US Supreme Court overturned the decades-old national ban online sports betting called PASPA.
We’ll lay out the bill’s most important points in a minute but first let’s go over the key reasons this bill may have difficulty passing.
To start with, it had been introduced 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 has to be held. The settlement will have to pass with a two-thirds majority in the House and Senate and be approved in a voter referendum. The earliest that may happen is November, 2019.
Here would be the bill’s most important features:
Online and mobile sports gambling in Texas will be legal.
A maximum of five permits will be sold. Each permit will allow two online betting site skins.
Gamblers will cover a 6.25% tax, very similar to a revenue tax, on all money wagered.
If the resolution and bill to amend the constitution pass, sports gambling will be legal in Texas on January 1, 2020.
The Current Sports Betting Situation in Texas
Estimates suggest countless dollars of tax revenue could be produced from sports gambling legalization which Texas are the second-biggest sports betting state in the country.
Even without internet and mobile gambling, it’s projected that Texans will wager $9 billion on sports yearly. A 6.25percent tax on those sales would equal over $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 moves ahead.
A prevailing anti-gambling attitude isn’t the only hurdle this invoice will have to clean. As you’ll read below, even if the state wished to legalize sports betting it’d still need to amend its constitution to allow for betting on sports.
All sorts of gaming, with the exclusion of this state lottery and horse and dog racing, is prohibited in Texas.
There is only one tribal casino in the entire country and it’s not allowed to provide casino table games, only 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 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 associate with a casino.
This doesn’t mean legalization is coming soon to Texas, however the country’s flagship sports franchise inking a significant deal with a casino company is another part 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 gambling or have invoices in movement to legalize it. That means Texans will have ample chance to take their billions of dollars and bet it out of state.
Texas Betting Laws Summary
Sports gambling is currently illegal in Texas.
A sports gambling bill was released in February of 2019 that may take effect on January 1, 2020.
While sports betting is illegal, dog and horse racing are legal. The state lottery has been around since 1991.
There is one tribal casino in Texas, the Kickapoo Lucky Eagle Casino in Eagle Pass to 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 in Texas
There is no real sports gambling history in Texas. The state has enforced among the country’s strictest set of anti-gambling laws and it goes way back. Dog and horse racing are all legal in Texas, nevertheless gamblers can simply put in-person wagers. OTB betting is not permitted.
To Provide the present scenario some context, let’s look at the most pivotal moments in Texas’s gaming history:
1933 – Texas implements its first Pari-Mutuel horse race gambling.
1937 – Four years into the country’s foray into legal horse racing that the paths are closed down and gaming on the races is prohibited.
1971 – Charity gambling is exempted from anti-gambling laws. A couple of years later this judgment is overturned once more making it illegal .
1982 – Licenses for charitable gambling are legally sanctioned. This required an amendment to the state constitution in 1980.
1987 – Pari-mutuel horse track betting reunite as a result of some favorable effect in a state referendum. Simulcast betting from external racetracks is released in 1991.
1988 – Casino Cruises are available which sanction legal gambling as long as they are in international waters. Vessels depart from the Texas coast. Operations lasted for 20 years before shutting down.
1992 – A referendum passes permitting for a state lottery that includes draws 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 remains to date which is possessed by the Kickapoo tribe just south of San Antonio near Mexico.
2013 – Many bills are introduced to expand gaming in the state but don’t see 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 online sports betting websites are lawful. Taking a look at the present sports gambling bill, nevertheless, it is clear that the future of legal Texas sports gambling will incorporate online and mobile gambling choices.
The Lone Star state is unique as it only has one tribal casino, and it’s located near the Texas/Mexico border. It’s a good bet that this business will attempt to become involved using a land-based sportsbook and an online gaming program.
Other physical infrastructure as far as casinos is scarce so we anticipate the majority of the actions to occur online.
Like we mentioned previously, the WinStar World Casino created an official deal with the Dallas Cowboys which may be an indicator that it is considering entering the market.
We also expect established online sports gambling sites that are already working in other nations to apply for permits. This includes brands such as BetStars, 888sport and many more.
If legalization does occur, check this page for specialist reviews on all the best online sportsbooks in Texas.
Which Sports Could You Bet on Online at Texas?
Texas is among the very sports mad states in the whole 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, with top rated teams coming from schools 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 wager on popular North American sport and nearly anything else found anywhere on the planet.
A typical menu of sports Texans will be able to bet on includes:
Soccer (MLS, Premier League, Champions League, La Liga, International Competitions and much more )
The Way to Bet on Sports Legally in Texas
Gambling is currently extremely restricted in Texas, with a single property tribal casino in the whole state and no physical sportsbooks.
The sport gambling legislation that is now in the works gives us an indication of how things will likely work later on.
In other states that currently allow online sports betting, the practice of signing up for an account, depositing money and placing legal wagers is actually simple.
First browse reviews of all the best online sports betting sites in Texas, find one you like and then register for an account. You can usually make an account from everywhere but you must be in Texas to really make stakes.
You’re going to have to supply some personal information and once your account is set up, you can deposit money using lots of popular banking choices. You may frequently get in on particular welcome bonuses and other supplies when you deposit.
When the cash is on your account, just discover the game that you need to wager on and put your wager.
Are Daily Fantasy Sports Legal in Texas?
Players can place wagers at favorite DFS gaming websites including FanDuel and DraftKings, however there is 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 daily fantasy websites, there were unsuccessful bills to fully legalize DFS previously.
Both FanDuel and DraftKings accept Texas players along with the country seems content with allowing this play out at a country of legal flux until it completely considers their next steps on sports gambling.
Concerning security, the Fantasy Sports Trade Association and the US Gambling Commission are responsible for all DFS action so at the close of the afternoon, funds on the websites are 100% protected.
What Is the Future of Online Sports Betting in Texas?
While a dark place for legal gambling, Texas’s future as far as sports betting goes is becoming somewhat brighter.
There is still a ways to go but with the introduction 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 gambling could inject nearly $2 billion dollars into the local economy and produce over 9,000 jobs. With Texans already gambling on sports and in different states, new laws may really have a chance of death.
On the other side of the argument are groups like the General Baptist Convention of Texas that consists of approximately three million Texans. Not only are they contrary to legal sports gambling, they want to eliminate 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, similar to the lottery.
« It’d make a sales tax deduction using its regressivity. So, can it be smart for us to fund our government with the people that we’re giving money to help? No, » said Kohler.
On the other hand, the State lottery failed to create $1.3 billion in 2017 for the nation’s education system. The taxation revenue from sports betting will be even larger.
Questions Stay for Legal Texas Sports Betting
Whether sports betting is finally 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 happen but it might not be the current sports gambling bill that gets the job done.
But if everything goes perfectly and H 1275 moves with an amendment to the state constitution, Texans would be able to start gambling on sports lawfully as early as January 1, 2020.
The sheer size of the possible sector and profits, literally tens of thousands of dollars, is the biggest reason we may observe this laws fast-tracked.
Meanwhile, sports bettors in Texas can bet on DFS, or even make the excursion to one of a few nearby states which are already legalizing full-on sports betting.
2019 will be an important year for internet sportsbooks in Texas and we’re going to post major developments as they occur on this particular page.
Additionally, browse our country by state guides to legal sports betting in the united states for more information on other areas of the country.
Read more: nbabettingguide.com