Despite an absolutely enormous sports culture, sports gambling is not legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gaming in virtually all types and although there are indications of a change, Texans should not hold their breath waiting for legal sports gambling to arrive anytime soon.
But, there are a couple of exceptions. While standard sports betting isn’t permitted, websites providing daily dream sports, such as DraftKings and FanDuel are allowed to function in the state.
Early in 2019 a state lawmaker registered a new Texas sports betting bill to permit in-person and mobile sports betting and whether it looks amazing on paper, it confronts a couple of huge challenges. More on that in another section.
In this guide we will Have a deep dip into Texas sports betting laws to answer:
When will you be able to bet on sports lawfully in Texas?
What is the new Texas sports gambling bill H 1275 all about?
How can people in Texas have the ability to bet on sports when it becomes legal?
We will also delve into the questions of whether 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 may 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 since the US Supreme Court overturned the decades-old federal ban online sports gambling called PASPA.
We’ll lay the bill’s most important points in a minute but first let’s go over the main reasons this bill may have a hard time passing.
First of all, it was introduced by a Democrat and Texas is a staunchly Republican country. Second, 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 most important features:
Online and mobile sports gambling in Texas will be legal.
A maximum of five licenses will be sold. Each license will permit two online gaming website skins.
Gamblers will cover a 6.25% tax, very similar to a sales tax, on all money wagered.
If the bill and resolution 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 countless dollars of tax revenue could be generated from sports gambling legalization and that Texas would be the second-biggest sports gambling state in the nation.
Even without internet and mobile gambling, it’s estimated that Texans will wager $9 billion on sports yearly. A 6.25% tax on these sales would equal more than $500 million.
The urge to access that potential earnings is butting up against a largely conservative, anti-gambling establishment which will make for an interesting dynamic if this bill moves ahead.
A prevailing anti-gambling mindset is not the only hurdle this invoice is going to have to clean. Since you’ll read about below, even if the state wished to legalize sports betting it’d still need to amend its constitution to permit for betting on sports.
All types of gaming, with the exception of the state lottery and dog and horse racing, is illegal in Texas.
There is but one tribal casino in the entire country and it isn’t allowed to offer casino table games, just slots.
The gambling laws are incredibly rigid from the Lone Star State and bookmaking is a Class A misdemeanor.
Despite sports gambling being illegal in Texas, the state’s biggest sports team, the Dallas Cowboys, have agreed to a sponsorship agreement with WinStar World Casino.
With the deal, the Cowboys became the first NFL team to associate with a casino.
This does not mean legalization is coming soon to Texas, however the state’s flagship sports franchise inking a major deal with a casino business is another portion of the puzzle that is coming together.
Another big factor is that Texas’s neighbors such as New Mexico, Louisiana, and Oklahoma have fully fledged legalized sports betting or have invoices in movement to legalize it. That means Texans will have considerable chance to take their billions of dollars and wager it from state.
Texas Betting Laws Summary
Sports betting is currently 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 around since 1991.
There’s one tribal casino in Texas, the Kickapoo Lucky Eagle Casino in Eagle Pass to the Mexico border.
Daily dream 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 real sports betting history in Texas. The nation has enforced one of the nation’s strictest set of anti-gambling laws and it goes way back. Dog and horse racing are all legal in Texas, nevertheless gamblers can only place in-person wagers. OTB betting is not permitted.
To give the present situation some context, let’s 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 country’s foray into legal horse racing the tracks are shut down and gaming on the races is prohibited.
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 gambling are legally sanctioned. This took a change to the state constitution in 1980.
1987 – Pari-mutuel horse track betting reunite thanks to some favorable effect in a state referendum. Simulcast betting from external racetracks is introduced in 1991.
1988 – Casino Cruises are available which sanction legal gaming so 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 which 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. Just one tribal casino stays to date that’s 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 now, no online sports betting websites are lawful. Taking a look at the current sports betting bill, however, it’s apparent that the future of legal Texas sports betting will include online and mobile betting choices.
The Lone Star state is exceptional as it only has one tribal casino, and it’s situated near the Texas/Mexico border. It is a fantastic bet that this business will attempt to become involved with a land-based sportsbook and an internet betting app.
Other physical infrastructure so far as casinos is scarce so we expect the majority of the action to occur 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 going into the market.
We also expect established online sports betting sites that are already working in different nations to apply for licenses. This includes brands such as BetStars, 888sport and a lot more.
If legalization does occur, check this page for expert reviews on all the best online sportsbooks in Texas.
Which Sports Can You Bet Online at Texas?
Texas is one of the very sports crazy states in the whole country, with two NFL teams, three NBA teams, two MLB teams, two MLS teams, along with an NHL team.
And that doesn’t even tap into their huge collegiate match footprint, together with high ranked teams coming from schools like 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 favorite North American sport and nearly anything else found anywhere in the world.
A Normal menu of sports Texans will Have the Ability to wager on includes:
Football (MLS, Premier League, Champions League, La Liga, International Competitions and more)
The Way to Bet on Sports Legally in Texas
Gambling is presently extremely restricted in Texas, with one land tribal casino in the whole state and no physical sportsbooks.
The sports gambling legislation that is currently in the works gives us a sign of how things will likely work later on.
In other countries that currently allow online sports betting, the process of signing up for an account, depositing cash and placing legal wagers is actually straightforward.
First read reviews of all of the best online sports gambling sites in Texas, find one you like and then register for an account. You can usually make an account from anywhere but you have to be in Texas to actually make stakes.
You’ll have to provide some personal info and once your account is installed, you can deposit cash using lots of popular banking options. You can often get in on special welcome bonuses and other supplies when you deposit.
Once the money is on your account, just discover the game you need to bet on and place your bet.
Are Daily Fantasy Sports Legal in Texas?
Players may place wagers at favorite DFS betting sites including FanDuel and DraftKings, but there is a bit of a legal grey area when it comes to whether it’s actually valid or not.
While the state does not press charges against everyday fantasy websites, there were ineffective bills to fully legalize DFS in the past.
Both FanDuel and DraftKings take Texas players along with the country seems content with allowing this play out at a state of legal flux until it completely believes their next steps online sports gambling.
In terms of security, the Fantasy Sports Trade Association and the US Gaming Commission are responsible for all DFS action so at the close of the day, 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’s still a ways to go but with the debut of a new bill to legalize sports betting we’re starting to see a glimmer of light at the end of the tunnel.
Estimates range, but the American Sports Betting Coalition considers legalized sports gambling could inject nearly $2 billion dollars into the local economy and create over 9,000 jobs. With Texans already gambling on sports and in different nations, new laws may actually have a chance of passing.
On the opposite side of the debate are groups such as the General Baptist Convention of Texas that is made up of roughly three million Texans. Not only are they contrary to legal sports betting, 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 betting will hurt the weakest people in the state that the most, like the lottery.
“It’d make a revenue tax blush with its regressivity. So, is it smart for us to finance our government together with all the folks that we are giving money to assist? No,” said Kohler.
On the other hand, the State lottery failed to create $1.3 billion in 2017 for the state’s education system. The taxation revenue from legal sports gambling will be even bigger.
Questions Stay for Legal Texas Sports Betting
Whether sports betting is eventually legalized in Texas depends on lots of different factors and nobody can predict exactly how it’s likely to play out.
Our best guess is that it will occur but it might not be the current sports betting bill which gets the work done.
But if all goes perfectly and H 1275 moves with an amendment to the constitution, Texans would have the ability to get started gambling on sports legally as early as January 1, 2020.
The sheer size of the possible industry and gains, literally billions of dollars, is the biggest reason we might see this laws fast-tracked.
In the meantime, sports bettors in Texas can bet on DFS, or even make the excursion to among a couple of nearby states 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 big developments as they happen on this page.
Additionally, browse our country by state guides to legal sports betting in the united states for more info on other parts of the country.
Read more: statesmannews.com