Is Online Sports Betting Legal in Texas?
Despite an absolutely massive sports culture, sports betting isn’t legal in Texas.
Historically, the Lone Star State has maintained a firm stance against gambling in almost all forms and although there are signs of a change, Texans should not hold their breath waiting for lawful sports betting to arrive anytime soon.
But, there are a couple exceptions. While standard sports gambling is not allowed, websites providing daily dream sports, for example DraftKings and FanDuel are allowed to operate in the nation.
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 faces a few big challenges. More importantly in another section.
In this guide we will Have a deep dive into Texas sports betting laws to answer:
When are you going to be able to bet on sports lawfully in Texas?
What is the brand new Texas sports gambling bill H 1275 about?
How can people in Texas be able to wager on sports when it will become legal?
We’ll also delve into the questions of if it’s legal to bet on daily dream sports (DFS) in Texas and how the nation’s enormous professional and college sports culture will play to the legal sports betting 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)
On February 1, 2019, Rep. Eddie Lucio III registered H 1275, the first sports gambling bill in Texas since the US Supreme Court overturned the decades-old national ban online sports gambling known as PASPA.
We’ll lay the bill’s main points in a second but first let’s go over the main reasons this bill may have difficulty passing.
First of all, it had been introduced by a Democrat and Texas is a staunchly Republican state. Second, for the bill to pass, a referendum to amend the state constitution to include 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 main features:
Online and mobile sports gambling in Texas is going to be legal.
A maximum of five licenses will be sold. Each license will allow two online betting site skins.
Gamblers will pay a 6.25% tax, similar to a sales tax, on all money wagered.
In the event the bill and resolution to amend the constitution pass, sports betting will be lawful in Texas on January 1, 2020.
The Current Sports Betting Situation in Texas
Estimates indicate countless dollars of tax revenue could be generated from sports gambling legalization and that Texas are the second-biggest sports gambling state in the country.
Even without online and mobile betting, it is projected that Texans will bet $9 billion on sports yearly. A 6.25percent tax on those sales would equal over $500 million.
The desire to access that potential revenue is butting up against a largely conservative, anti-gambling institution which will make for an interesting dynamic if this bill goes forward.
A prevailing anti-gambling attitude is not the only barrier that this invoice is going to have to clean. As you’ll read about below, even if the state wanted to legalize sports gambling it would still must amend its constitution to permit for gambling on sports.
All types of gambling, with the exclusion of this state lottery and dog and horse racing, is prohibited in Texas.
There is only one tribal casino in the entire country and it isn’t permitted to offer casino table games, just slots.
The gaming laws are amazingly stiff from the Lone Star State and bookmaking is a Class A misdemeanor.
Despite sports gambling being illegal in Texas, the state’s most significant 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 partner with a casino.
This does not mean legalization is coming shortly to Texas, however the country’s flagship sports franchise inking a significant deal with a casino company is just another portion of the puzzle that is coming together.
Another big element is that Texas’s neighbors such as New Mexico, Louisiana, and Oklahoma either have fully fledged legalized sports betting or have bills in motion to legalize it. That means Texans will have considerable opportunity to take their billions of dollars and wager it from state.
Texas Betting Laws Summary
Sports betting is illegal in Texas.
A sports betting bill was introduced in February of 2019 which may 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 fantasy sports betting 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 gambling background in Texas. The nation has enforced one of 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 only put in-person wagers. OTB betting is not permitted.
To Provide the present scenario some context, let’s look at the most crucial moments in Texas’s gaming history:
1933 – Texas implements its very first Pari-Mutuel horse race gambling.
1937 – Four years into the state’s foray into legal horse racing that the tracks are shut down and gaming on the races is banned.
1971 – Charity gaming is exempted from anti-gambling legislation. Two years after this ruling is overturned after more making it illegal again.
1982 – Licenses for charitable gaming are legally sanctioned. This took a change to the state constitution in 1980.
1987 – Pari-mutuel horse track betting reunite thanks to some positive effect in a state referendum. Simulcast betting from external racetracks is introduced in 1991.
1988 – Casino Cruises are available which sanction legal gambling so long as they’re in international waters. Vessels depart from the Texas coast. 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. Only one tribal casino remains to date which is owned by the Kickapoo tribe just south of San Antonio near Mexico.
2013 – Many bills are introduced to expand gaming in the country but don’t see the light of day. Plans comprised offering video lottery terminals at racetracks and eight state-licensed casinos.
Which Online Betting Sites Are Legal in Texas?
As of this moment, no online sports gambling sites are legal. Looking at the current sports betting bill, nevertheless, it is clear that the future of legal Texas sports gambling will include online and mobile betting choices.
The Lone Star state is exceptional in that it only has a single tribal casino, and it’s located near the Texas/Mexico border. It’s a fantastic bet that this business will attempt to become involved using a land-based sportsbook and an internet gaming program.
Other physical infrastructure so far as casinos is scarce so we anticipate nearly all the action to happen online.
Like we mentioned previously, the WinStar World Casino made an official deal with the Dallas Cowboys which can be an indicator that it’s considering entering the market.
In addition, we expect established online sports gambling sites that are already operating in different states to apply for permits. Including brands like BetStars, 888sport and a lot more.
If legalization does occur, check this page for expert reviews on all of the best online sportsbooks in Texas.
Which Sports Could You Bet Online in Texas?
Texas is one of the most sports crazy states in the entire country, with just two NFL teams, three NBA teams, two MLB teams, two MLS teams, along with also an NHL team.
And that doesn’t even tap into their huge collegiate sport footprint, with high rated teams coming from colleges such as Texas, Texas Tech, SMU, Vanderbilt, and Texas A&M.
When and if legal sports betting comes to Texas, gamblers will be able to bet on popular North American sports and nearly anything else located anywhere on the planet.
A Normal menu of sport Texans will Have the Ability to wager 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 limited in Texas, with a single land tribal casino in the whole country and no bodily sportsbooks.
The sport betting legislation that’s currently in the works gives us an indication of how things will probably work in the future.
In other states that already allow online sports gambling, the process of signing up for an account, depositing cash and placing legal wagers is actually simple.
First browse reviews of all the best online sports betting websites in Texas, find one you enjoy and then register for an account. You can usually make an account from everywhere but you have to be in Texas to really make bets.
You’re going to have to provide some personal info and after your account is set up, you can deposit money using tons of popular banking options. You may often get in on particular welcome bonuses and other offers when you deposit.
When the money is in your accounts, just find the sport that you need to wager on and place your bet.
Are Daily Fantasy Sports Legal in Texas?
Players may place wagers at popular DFS gaming websites such as FanDuel and DraftKings, however there is a small legal gray area in regards to if it is actually valid or not.
While the state doesn’t press charges against everyday fantasy sites, there have been ineffective invoices to fully legalize DFS previously.
The two FanDuel and DraftKings accept Texas players along with the country seems content with letting this play out in a country of lawful flux until it fully believes their next steps online sports betting.
In terms of safety, the Fantasy Sports Trade Association and the US Gaming Commission are responsible for all DFS activity so at the end 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 so far as sports betting goes has gotten 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 vary, 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 betting on sports and in other states, new legislation may really have a chance of passing.
On the opposite side of the argument are groups such as the General Baptist Convention of Texas which consists of approximately three million Texans. Not only are they against 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 gambling will hurt the poorest people in the country that the most, like the lottery.
“It’d make a revenue tax deduction using its regressivity. So, is it smart for people to finance our government together with the people that we are giving money to assist? No,” said Kohler.
On the other hand, the State lottery failed to generate $1.3 billion in 2017 for the state’s education system. The tax revenue from sports betting will be even bigger.
Questions Remain for Legal Texas Sports Betting
Whether sports betting is finally legalized in Texas depends on lots of different factors and no one can predict precisely how it’s likely to perform.
Our very best guess is that it will occur but it might not be the recent sports gambling bill which gets the work done.
But if everything goes perfectly and H 1275 passes with an amendment to the state constitution, Texans will be able to start betting on sports legally as early as January 1, 2020.
The sheer size of the possible industry and profits, literally tens of thousands of dollars, is the largest reason we may observe this laws fast-tracked.
In the meantime, sports gamblers in Texas can bet on DFS, or even make the excursion to one of a couple of nearby states that are already legalizing full-length sports betting.
2019 will be a significant year for internet sportsbooks in Texas and we’re going to post major developments as they happen on this particular page.
Additionally, browse our state by state guides to legal sports betting in the united states for more info on other parts of the nation.