Despite a totally enormous sports culture, sports betting is not legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gambling in virtually all forms and though there are signs of a change, Texans should not hold their breath waiting for legal sports betting to arrive anytime soon.
However, there are a couple of exceptions. While standard sports gambling is not permitted, sites providing daily fantasy sports, for example DraftKings and FanDuel are allowed to function in the nation.
Early in 2019 a state lawmaker registered a brand new Texas sports betting bill to allow in-person and cellular sports gambling and while it looks amazing on paper, it faces a few big challenges. More importantly in the next section.
In this guide we will take a deep dive into Texas sports gambling laws to answer:
When are you going to be able to bet on sports legally in Texas?
What is the new Texas sports betting bill H 1275 about?
How can people in Texas be able to bet on sports if it will become legal?
We will also delve into the questions of whether it’s legal to bet on daily fantasy sports (DFS) in Texas and the way the nation’s enormous professional and college sports culture will play into the legal sports gambling industry we may one day see develop from 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 filed H 1275, the first sports gambling bill in Texas because the US Supreme Court overturned the decades-old federal ban online sports gambling known as PASPA.
We are going to lay out the bill’s main points in a minute but first let’s discuss the key reasons this bill may have difficulty passing.
First of all, it was released 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 need to pass with a two-thirds majority in the House and Senate and be approved in a voter referendum. The oldest that may happen is November, 2019.
Here would be the bill’s most important features:
Online and mobile sports betting in Texas is going to be legal.
A maximum of five permits will be marketed. Each license 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 both pass, sports betting will be lawful in Texas on January 1, 2020.
The Recent Sports Betting Situation at Texas
Estimates indicate billions of dollars of tax revenue could be generated from sports gambling legalization which Texas would be the second-biggest sports betting state in the nation.
Even without online and mobile betting, it’s projected that Texans will wager $9 billion on sports annually. A 6.25percent tax on those sales would equal more than $500 million.
The desire 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 barrier that this invoice is going to have to clear. As you’ll read below, even if the country wanted to legalize sports gambling it’d still must amend its constitution to permit for betting on sports.
All types of gaming, with the exception of this state lottery and dog and horse racing, is illegal in Texas.
There’s but one tribal casino in the whole state and it’s not permitted to provide casino table games, just slots.
The gambling laws are amazingly rigid in the Lone Star State and bookmaking is a Class A misdemeanor.
Despite sports gambling being illegal in Texas, the nation’s most significant 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 partner with a casino.
This does not mean legalization is coming shortly to Texas, no matter how the state’s flagship sports company inking a major deal with a casino company is another portion of the puzzle that is coming together.
Another large element is that Texas’s neighbors such as New Mexico, Louisiana, and Oklahoma have fully fledged legalized sports betting or have bills in motion to legalize it. That means Texans will have ample opportunity to take their billions of dollars and wager it out of state.
Texas Betting Laws Summary
Sports betting is currently illegal in Texas.
A sports gambling bill was introduced in February of 2019 which could take effect on January 1, 2020.
While sports gambling 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 on the Mexico border.
Daily dream sports betting is lawful and DraftKings, FanDuel, and Yahoo! all accept players from Texas.
The History of Online Sports Betting in Texas
There is no actual sports gambling background in Texas. The state has enforced one of the nation’s strictest set of anti-gambling laws and it goes way back. Dog and horse racing are all lawful in Texas, nevertheless gamblers can simply put in-person wagers. OTB gambling isn’t permitted.
To give the current situation some context, let us 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 to the country’s foray into legal horse racing that the tracks are closed down and gambling on the races is banned.
1971 – Charity gaming is exempted from anti-gambling legislation. Two years later this ruling is overturned after more making it illegal again.
1982 – Licenses for charitable gaming are legally sanctioned. This required an amendment to the state constitution in 1980.
1987 – Pari-mutuel horse track betting return as a result of a favorable effect in a state referendum. Simulcast betting from outside racetracks is introduced in 1991.
1988 – Casino Cruises are available which sanction legal gaming so long as they’re 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 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. Only one tribal casino remains to date which is possessed by the Kickapoo tribe just south of San Antonio near Mexico.
2013 – Lots of 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 internet sports betting sites are lawful. Looking at the current sports betting bill, nevertheless, it’s clear that the future of legal Texas sports betting will include online and mobile betting choices.
The Lone Star state is unique in that it just has one tribal casino, and it’s situated near the Texas/Mexico border. It’s a good bet that this organization will try to get involved using a land-based sportsbook and an internet betting app.
Other physical infrastructure as far as casinos is infrequent so we anticipate nearly all the actions to occur online.
Like we mentioned before, the WinStar World Casino made an official deal with the Dallas Cowboys which may be an indication that it’s considering going into the market.
We also expect established online sports betting sites that are already operating in different states to apply for permits. Including brands such as BetStars, 888sport and a lot more.
If legalization does happen, check this page for specialist reviews on all of the best online sportsbooks in Texas.
Which Sports Could You Bet 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, along with an NHL team.
And that doesn’t even tap into their huge collegiate sport footprint, with high ranked teams coming from colleges like Texas, Texas Tech, SMU, Vanderbilt, and Texas A&M.
When and if legal sports betting comes to Texas, gamblers will have the ability to wager on popular North American sports and pretty much anything else found anywhere on the planet.
A Normal menu of sport Texans will be able to bet on includes:
NFL Football
NCAA Football
NBA Basketball
NCAA Basketball
NHL Hockey
NCAA Hockey
MLB Baseball
NCAA Baseball
Australian Rules
Boxing
Cricket
Formula 1
Golf
MMA
Nascar
Rugby
Football (MLS, Premier League, Champions League, La Liga, International Competitions and more)
Tennis
Non-sports Entertainment
How to Bet on Sports Legally in Texas
Gambling is presently extremely limited in Texas, with one land tribal casino in the entire state and no bodily sportsbooks.
The sports gambling legislation that is currently in the works gives us a sign of how things will probably work later on.
In other countries that currently allow online sports gambling, the process of registering for an account, depositing cash and placing legal wagers is actually straightforward.
First browse reviews of all the best online sports gambling websites in Texas, find one you enjoy and then sign up for an account. You can usually make an account from anywhere but you must be in Texas to actually make stakes.
You’re going to have to supply some personal info and once your account is installed, you can deposit cash using tons of popular banking choices. You may frequently get in on special welcome bonuses and other offers when you deposit.
Once the cash is on your account, just discover the sport that you need to wager on and put your bet.
Are Daily Fantasy Sports Legal in Texas?
Players can place wagers at popular DFS gaming websites such as FanDuel and DraftKings, however there’s a bit of a legal grey area in regards to if it is really valid or not.
While the state doesn’t press charges against everyday dream websites, there were ineffective bills to fully legalize DFS in the past.
Both FanDuel and DraftKings accept Texas players along with the country seems content with allowing this play out in a country of lawful flux until it fully considers their next steps on sports gambling.
Concerning safety, the Fantasy Sports Trade Association and the US Gaming Commission are responsible for all DFS activity so at the end of the day, funds on the websites are 100% protected.
What Is the Future of Online Sports Betting at Texas?
While historically a dark location for lawful gambling, Texas’s potential as far as sports gambling goes is becoming somewhat brighter.
There’s still a ways to go but with the introduction of a new bill to legalize sports gambling we’re starting to see a glimmer of light at the end of the tunnel.
Estimates vary, but the American Sports Betting Coalition considers legalized sports gambling could inject nearly $2 billion dollars into the local market and produce over 9,000 jobs. With Texans already betting on sports illegally and in other states, new laws may actually have a chance of death.
On the opposite side of the debate are groups like the General Baptist Convention of Texas which consists of roughly three million Texans. Not only are they contrary to legal sports betting, they want to get rid of the entire state lottery.
Rob Kohler is a lobbyist for the Baptist Convention and states the proposed tax on sports gambling will hurt the weakest people in the state that the most, similar to the lottery.
“It would make a revenue tax deduction using its regressivity. So, is it smart for us to finance our government with all the people that we’re giving money to help? No,” said Kohler.
On the other hand, the State lottery did create $1.3 billion in 2017 for the state’s education system. The tax revenue from sports betting will be even larger.
Questions Remain for Legal Texas Sports Betting
Whether sports gambling is eventually legalized in Texas depends on lots of different variables and no one can predict exactly how it’s going to perform.
Our very best guess is it will occur but it may not be the recent sports gambling bill which gets the job done.
But if all goes perfectly and H 1275 passes with an amendment to the constitution, Texans would have the ability to start betting on sports legally 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 might see this legislation 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 that are already legalizing full-length sports gambling.
2019 will be an important year for online sportsbooks in Texas and we’ll post big developments as they happen on this page.
Additionally, browse our country by state guides to legal sports betting in the US for more info on other areas of the nation.
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