The Future of Sports Betting in Texas: A Comprehensive Outlook

As of 2025, Texas stands at a pivotal crossroads in the realm of sports betting. With a population exceeding 30 million and a deep-rooted passion for sports—from the Dallas Cowboys and Houston Texans in the NFL to the Texas Longhorns and Texas A&M Aggies in college football—the Lone Star State represents one of the largest untapped markets for legalized sports wagering in the United States. Despite this potential, sports betting remains illegal in Texas, a state known for its conservative stance on gambling. However, the winds of change are stirring, driven by economic opportunities, public demand, and shifting political dynamics. This essay explores the future of sports betting in Texas, examining the current legal landscape, legislative efforts, economic implications, cultural factors, and the potential timeline for legalization.

The Current State of Sports Betting in Texas

Sports betting in Texas is currently prohibited under the state’s stringent gambling laws, outlined in the Texas Penal Code, Section 47.02, which bans bets on the outcome of games or participant performances. Unlike the 38 states (plus Washington, D.C.) that have legalized some form of sports betting since the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018, Texas has resisted joining the wave. The state permits limited gambling, such as horse racing and three tribal casinos offering bingo-style games, but traditional sportsbooks—whether retail or online—are off-limits.

Despite this prohibition, Texans are betting. The Texas Sports Betting Alliance (TSBA), a coalition of professional sports teams and betting operators, reports that over one million attempts to access legal sports betting platforms were blocked by geolocation services in a single month, with many residents turning to unregulated offshore sites. This underground activity highlights a key issue: Texas is losing out on tax revenue and consumer protections while its citizens wager anyway.

Legislative Efforts: A History of Near Misses

The push to legalize sports betting in Texas has gained traction in recent years, though it has yet to cross the finish line. The Texas Legislature meets biennially in odd-numbered years, meaning 2025 is the next opportunity for action. The most significant progress came in 2023, when House Joint Resolution 102 (HJR 102) and House Bill 1942 (HB 1942) passed the Texas House. HJR 102 proposed a constitutional amendment to legalize sports betting, requiring a voter referendum, while HB 1942 outlined a regulatory framework, including a 15% tax on betting revenue and licenses tied to professional sports teams. The House approved both measures with bipartisan support—HJR 102 passed 101-43, exceeding the two-thirds majority needed for constitutional amendments.

However, the bills died in the Senate, stymied by Lieutenant Governor Dan Patrick, who wields significant control over the upper chamber’s agenda. Patrick, a Republican and vocal opponent of gambling expansion, declared there was insufficient GOP support to advance the legislation, effectively halting progress until 2025. His stance reflects a broader conservative resistance rooted in moral objections and concerns about gambling addiction.

Fast forward to 2025, and new proposals are emerging. Senate Joint Resolution 16 (SJR 16), filed by Sen. Carol Alvarado in November 2024, aims to amend the Texas Constitution to allow both sports betting and casino gambling at “destination resorts.” House Joint Resolution 134 (HJR 134), introduced by Rep. Sam Harless, focuses solely on sports betting, delegating regulatory details to future sessions. These bills signal a renewed push, but Patrick’s opposition—and his term extending through 2026—remains a formidable barrier.

Economic Incentives: A Billion-Dollar Opportunity

The economic case for legalizing sports betting in Texas is compelling. A 2024 study by Eilers & Krejcik Gaming, commissioned by the TSBA, projects that a regulated market could generate over $360 million in annual tax revenue and create more than 8,000 jobs, with an economic output exceeding $2.6 billion yearly. This aligns with broader industry trends: the American sports betting market earned $13.7 billion in revenue in 2024, per NBC Sports, despite Texas and California remaining untapped.

Texas’s neighbors—Louisiana, Arkansas, and New Mexico—already offer legal sports betting, siphoning revenue from Texans who cross state lines. The TSBA estimates that millions of dollars flow to these states and offshore operators annually, a loss Texas could reclaim with legalization. Proponents argue that this revenue could fund critical needs, such as education or property tax relief, a selling point in past bills like HJR 102, which earmarked 98% of tax proceeds for the latter.

The involvement of Texas’s 12 professional sports teams—spanning the NFL, NBA, MLB, NHL, and MLS—adds weight to the economic argument. Teams like the Dallas Cowboys, Houston Astros, and Texas Rangers have joined the TSBA, eyeing sponsorship deals and enhanced fan engagement. Mark Cuban, former majority owner of the Dallas Mavericks, has been a vocal advocate, partnering with Las Vegas Sands to push for gambling expansion, including a proposed casino-resort tied to a new Mavericks arena.

Cultural and Political Dynamics

Texas’s sports culture is unrivaled, with football reigning supreme at both professional and collegiate levels. The state’s fervor for games naturally aligns with betting, as evidenced by the millions of Texans already wagering illegally. A 2021 poll by the University of Houston found 43% of Texans favored legal sports betting, with 31% neutral and only 26% opposed—numbers consistent across party lines. More recent surveys, like one from the UH Hobby School in 2025, show 60% support, including 59% of Republicans, suggesting a growing acceptance.

Yet, politics complicates the picture. Texas remains a Republican stronghold, with the GOP holding slim majorities in both legislative chambers and key positions like governor and lieutenant governor. Gov. Greg Abbott has softened his stance, telling the Houston Chronicle in 2025, “I don’t have a problem” with sports betting, a shift from his earlier opposition. However, Lt. Gov. Patrick’s influence looms large. His potential exit—speculated if Donald Trump wins the presidency in 2024 and taps him for a federal role—could open the door, though his likely replacement, Sen. Charles Schwertner, is equally anti-gambling.

The gambling industry is playing a long game, bolstered by deep pockets and strategic lobbying. Las Vegas Sands, led by Miriam Adelson, who acquired a majority stake in the Mavericks, is a major player, as are sportsbooks like DraftKings and FanDuel. These entities face opposition from conservative groups like the Texas Public Policy Foundation, which cites social costs—addiction, crime, and family strain—as reasons to maintain the status quo.

The Path to Legalization

The 2025 legislative session, running January to May, is the next battleground. For sports betting to become legal, a constitutional amendment must pass both chambers with two-thirds support (100 votes in the House, 21 in the Senate) and win a majority in a November 2025 referendum. HJR 134 and SJR 16 are the vehicles, but their fate hinges on several factors:

1. Senate Dynamics: Patrick’s grip on the Senate is the linchpin. Even with House support, a repeat of 2023’s stall is likely unless GOP senators shift or Patrick relents. His claim of “minimal support” among Republicans may be tested as public and team pressure mounts.

2. Voter Sentiment: If a referendum reaches the ballot, polls suggest it could pass, especially if framed as an economic boon rather than a moral issue. The simplified approach of HJR 134—leaving specifics to later—might broaden appeal.

3. External Pressure: Neighboring states’ success and the NFL’s embrace of betting (e.g., the Cowboys’ deal with Aristocrat Gaming) could sway lawmakers. The 2024 Missouri legalization via ballot measure offers a model, though Texas lacks that direct voter option.

If 2025 fails, the next chance is 2027, potentially post-Patrick if he departs. DraftKings CEO Jason Robins expressed optimism in 2024, saying Texas “has a real shot” in 2025, reflecting industry confidence. However, political scientists like UTSA’s Jon Taylor peg the odds at 25-30%, citing entrenched opposition.

Potential Framework and Impact

Should sports betting pass, Texas might adopt a model like HB 1942’s: licenses tied to pro teams, a 10-15% tax rate, and mobile betting to maximize reach. College betting could be restricted (e.g., no in-state props), given the state’s NCAA giants. Top sportsbooks—DraftKings, FanDuel, Bet365—would vie for market entry, partnering with teams and offering promos to capture the massive Texas audience.

The impact would be transformative. Beyond revenue, legal betting could boost tourism, enhance game-day experiences, and position Texas as a sports entertainment hub. Risks—addiction, unregulated betting persistence—would require robust oversight, likely via a Texas Gaming Commission as proposed in SJR 16.

Conclusion

The future of sports betting in Texas is a tale of opportunity versus inertia. The economic and cultural case is strong: billions in potential revenue, millions of eager fans, and a chance to regulate an existing practice. Yet, political hurdles, led by Dan Patrick and conservative resistance, temper optimism. 2025 is a critical year—success could see Texas join the legal betting fold by 2026, while failure delays the dream to 2027 or beyond. As the Legislature convenes, all eyes will be on Austin, where the clash of liberty, tradition, and dollars will shape the Lone Star State’s wagering destiny.