A Texas state representative has submitted the first gambling bill of this session. The constitutional amendment will put the decision to legalize sports betting to state voters in November.
The bill appears to only require retail sports betting, although it does not explicitly prohibit digital betting. It would allow professional sports teams, PGA Tour sites, and Class 1 racetracks to obtain licenses. The proposal requires any potential licensee to exist before January 1, 2025. Licensees would be able to operate sports betting in partnership with management service providers.
The constitutional amendment lacks a framework and the language is vague:
The constitutional amendment authorizes the legislature to legalize betting on certain sports events in the state.
Legislatures in other states, including Louisiana and Maryland, have taken similar measures. If Texas voters approve the bill like those in these two states, the legislature will be responsible for establishing a legal betting framework, including determining whether digital betting is part of it. Voters in Louisiana and Maryland legalized betting in 2020, and physical sports betting operations opened in 2021. Digital platforms launched in 2022.
For Texans, the approval in November 2025 still means that betting will take more than a year. The state legislature meets only in odd-numbered years.
Which entities can obtain licenses?
The proposal does not specify how many licenses will be issued. It explicitly defines "sports teams as generally defined by law." Legislators in other states have specified what they mean, including naming the teams. Texas has 13 professional sports teams, seven of which are from the four major American sports leagues.
Of the remaining six teams, one is the WNBA's Dallas Wings, and five are soccer teams. Texas has three MLS teams, one women's USL Super League team (Dallas Trinity), and one National Women's Soccer League team (Houston Dash). WNBA teams have been permitted to obtain betting licenses in most jurisdictions that allow sports teams to do so. However, MLS and women's professional soccer league teams are not included in all U.S. jurisdictions.
Texas has four PGA Tour sites. The Texas Racing Commission lists the state's four racetracks. NASCAR is not mentioned in the proposal.
Obstacles still exist
In the past two sessions, Texas legislators have been considering gambling legislation. In 2023, a similar constitutional amendment passed the House but was blocked in the Senate. The amendment did include racetracks and allocated 98% of tax revenue to property tax relief.
Despite vigorous lobbying by the Las Vegas Sands Corp and other gambling entities, polls show that Texans support legal gambling, and Governor Greg Abbott has also stated he is "not opposed to online sports betting." The prospects for the bill's passage are unclear.
The Republican Lieutenant Governor Dan Patrick, also the acting president of the Senate, has consistently stated that he will not call for a vote on any gambling bill unless it has Republican support.
