Have you ever wanted to place a parlay bet in Texas–legally? While it’s still illegal to wager on sports in the Lone Star State right now, there’s good news on the horizon. According to the Texas Sports Betting Alliance, Texans are edging closer to the legalization of sports gambling.
John Scott, who previously served as the Texas Secretary of State and currently represents the Texas Sports Betting Alliance, expressed his confidence in the upcoming legislative session. He told CBS Austin that he is “willing to put a dollar on it” as the Texas Senate prepares to revisit a pivotal bill aimed at legalizing sports betting in the state.
In 2023, during the 88th Texas Legislature session, a significant legislative development took place with the passage of House Joint Resolution 102. This resolution was specifically designed to lay the groundwork for the legalization of sports betting throughout the state of Texas. If enacted, it would have allowed Texas voters to decide through a constitutional amendment whether to permit sports betting operations within the state.
The resolution garnered considerable momentum and support among House members, ultimately achieving the crucial two-thirds majority required for passage. This marked a notable step forward for proponents of sports betting, who argue that legalization could generate substantial tax revenue and enhance local economies.
Despite the strong backing in the House, the process encountered a significant hurdle as the Senate chose not to schedule the resolution for consideration. As a result, the momentum built in the House did not translate into actionable legislation, leaving the future of sports betting in Texas uncertain for that session. The failure to advance the resolution indicates ongoing challenges in the pursuit of legalized sports betting in the state.
‘I’ve said repeatedly there is little to no support for expanding gaming from Senate GOP,” Lieutenant Governor Dan Patrick, who presides over the Senate, wrote in a social media post at the time. “I polled members this week. Nothing changed. The Senate must focus on issues voters expect us to pass. We don’t waste time on bills without overwhelming GOP support.”
“He’s always made it clear that if there is a groundswell within the Senate from their constituents that they want this, then he’s open to it,” Scott told CBS Austin. “I think last time his biggest opposition was that he really hadn’t heard from his members, and the Senate hadn’t heard from constituents that they wanted online gambling.”
Scott also emphasized that sports betting should be viewed as a benign issue, arguing that it grants Texans the autonomy to use their own money as they see fit. He believes that allowing residents to engage in sports betting not only respects personal freedom but also has the potential to generate significant revenue for the state.
Texas remains one of only 11 states in the United States that has yet to legalize sports betting, a popular activity often facilitated through user-friendly mobile applications. In November alone, there were an astounding estimated 1.5 million attempts to place sports bets from within the state, according to data compiled by GeoComply, a company specializing in geolocation technology. This significant interest underscores the demand for regulated sports wagering options among Texans.
Furthermore, in 2022, the American Gaming Association highlighted that residents of Texas are estimated to spend approximately $6 billion annually on illegal and unregulated sports betting activities. This figure not only reflects a substantial underground wagering market but also points to the potential revenue that could be generated if sports betting were legalized and regulated.
Industry insights from Eilers & Krejcik Gaming suggest that by establishing a legal framework for sports betting, Texas could potentially generate more than $360 million in direct tax revenue each year. This revenue could be allocated to various state programs and initiatives, highlighting the financial benefits alongside the increased safety and regulation of sports wagering.
As discussions progress, Scott remains hopeful that the new legislature will recognize the benefits of legalizing this form of wagering. The members of the legislature are scheduled to meet at the Capitol for the start of the 89th legislative session on January 14, 2025. This session will bring together lawmakers to discuss, debate, and enact new laws and policies that will impact the state, and gaming will be on of the topics discussed.
So far, Senator Carol Alvarado, of Houston has proposed Joint Resolution 16 and seeks to amend the constitution to permit sports betting at locations tagged “destination resorts.”
Alvarado filed the measure in November and according to its provisions, casino gaming and sports betting will be possible in seven resorts within state borders. It also explains sports betting to mean “placing a wager on the outcome of a live sporting event, as defined by general law.”
Senator Alvarado has proposed a plan to introduce commercial gaming in seven specific locations across Texas, as reported by Oddstrader, a well-known sports betting website. The proposed sites include two in the Dallas-Fort Worth-Arlington area, two in the Houston-Woodlands-Sugar Land region, one in the San Antonio-New Braunfels area, one in Corpus Christi, and one in the McAllen-Edinburg-Mission area. The plan also outlines a 15% tax on gross gaming revenue generated by the casinos.
In terms of mobile sports betting, Texas presents a significant opportunity due to its population of nearly 29 million residents, compared to New York’s 19.4 million. Given that New York is currently the most profitable sports betting market in the country, the potential for Texas to become a major player in this industry has captured the attention of many advocates for sports betting expansion.
