Texas Sports Betting: Legalization Could Create 8,000 Jobs

What’s Next for Texas Sports Betting?

Currently, sports betting remains illegal in Texas, making it one of 11 states where sports gambling is still prohibited. However, the findings from Eilers & Krejcik highlight the potential advantages of regulatory changes.

If legalized, sports betting in the state is projected to:

• Generate $360 million annually in direct tax revenue
• Provide an additional $24.3 million annually in non-gambling-related taxes
• Contribute over $2.6 billion annually in economic output

The push for legalization has gained traction among Texas sports team owners, who argue that legal sports betting would keep billions of dollars in revenue within the state and allow to support key initiatives such as education and property tax reductions

Advocates also emphasize that many Texans already participate in sports betting through unregulated means. Legalization would create a safer and more transparent environment while channeling revenue toward state programs.

Ineffective Efforts

Efforts to legalize sports betting in Texas have faced hurdles in the past. In 2021, five separate bills addressing legalization were introduced but failed to progress through legislative committees.

With Texas legislative sessions occurring biennially, the next opportunity to revisit legalization will be in 2025.

The immense potential of the Texas market was recently highlighted during the highly publicized fight between Jake Paul and Mike Tyson. The event, held in Texas, became the most-streamed sporting event in history and garnered the largest betting volume ever recorded by sportsbooks.

Additionally, neighboring states such as Louisiana and Arkansas have already legalized sports betting, increasing the pressure on the state to consider similar measures.

Despite the lack of progress in legalizing sports betting, Daily Fantasy Sports (DFS) games, offered by companies like DraftKings and FanDuel, are widely available in Texas. However, their legal status remains uncertain. In 2017, the Texas Attorney General issued an opinion declaring DFS games as violating state law. While this has not led to a complete halt in operations, it has created a gray area for the industry, with companies continuing to operate amid ongoing legal and regulatory uncertainty.