Report: Don’t Bet on Sports Betting Coming to Texas

The ongoing New Jersey Supreme Court case has sparked discussions across the nation regarding what might happen if the court rules in favor of New Jersey and repeals the federal sports betting ban. Should that happen, individual states will have the freedom to decide for themselves whether or not to allow sports betting.

States such as Delaware, Iowa and many others are currently looking at their options regarding sports betting. Lawmakers have already introduced bills in some states seeking to regulate sports betting in the event of a favorable SCOTUS decision while other states have commissioned studies to look into the issue.

In short, there is a lot of buzz surrounding sports betting even if the outcome of this case is still pending. States with budget concerns may be especially attracted to the idea of legalizing an entirely new industry they can then tax.

Texas, however, does not look like an early contender according to an in-depth report from the Austin Statesman. In the report, the Statesman outlines a list of reasons legal sports betting remains an underdog in Texas over the near term.

The Official Texas GOP Platform Opposes Gambling Expansion

The Texas GOP suffers from a bit of an identity crisis. On one hand, the Tea Party coalition still plays a prominent role in Texas GOP politics and is traditionally in favor of small government, less regulation, and more freedom. However, the Tea Party also has a significant social conservative presence among its contingent that is opposed to gambling expansion.

The official Texas GOP platform opposes the expansion of legalized gambling. This position is a bit of a head-scratcher considering the Texas GOP generally leans towards less government intervention in business affairs, but the party’s position is about as clear as it gets.

Here’s all they have to say on the matter:

“We oppose the expansion of legalized gambling.”

Texas Is Familiar with Strict Gambling Laws

Texas is not the most gambling-friendly state in the nation. Legal sports betting would be a major departure from tradition in Texas. The state only has a couple of casinos that operate on Indian land, and even that has been enough to ignite a decade-long legal battle between the state and tribes.

Past efforts to legalize online poker were quickly shot down and even online horse racing betting is prohibited. With the state’s long history of opposing gambling expansion, it would require no small amount of momentum to get the state to move in the opposite direction.

Fantasy Sports Cannot Find Firm Legal Footing

The daily fantasy sports industry operates in murky legal territory when it comes to Texas. In 2016, Attorney General Ken Paxton issued an opinion stating that paid fantasy sports contests operated as a business constitute illegal gambling under Texas law.

The opinion was just that – a nonbinding opinion. Paxton did not issue cease-and-desist letters ordering major fantasy sites to leave the state. Even so, FanDuel chose to play it safe and stop operating in Texas. DraftKings opted to stay.

Interestingly, Ken Paxton was one of 18 attorneys general from around the country who signed an amicus brief advising the Supreme Court to side with New Jersey in its sports betting case. Paxton’s position on the case has nothing to do with supporting sports betting. Instead, he sees the case as an issue of states’ rights; he wants the federal government to stay out of state issues.

Later that year, Representative Richard Peña Raymond introduced legislation to classify fantasy sports contests as games of skill and therefore clearly exempt them from state anti-gambling laws. That measure struggled to gain traction the following year and failed to become law before the end of the legislative session.

If fantasy sports can’t even find firm legal footing in Texas, what does that say about the odds of legal sports betting? Nothing good, that’s what. Past experience shows states have been much more comfortable expanding fantasy sports compared to other forms of gambling. In a state that won’t even pass legislation to legalize daily fantasy sports, we should all temper our expectations when it comes to straight up sports betting.

Sports betting has long been a contentious issue among the public and lawmakers alike. Concerns of not only gambling addiction, but also of match-fixing make sports betting an issue that is not undertaken lightly.

It’s a Longshot, but Never Say Never

Although legal sports betting is a long shot for Texas in the short term, proponents do not have to give up all hope. The state does have a strong presence of libertarian-leaning types who are not opposed to gambling.

Texas’ own Ron Paul wrote an op-ed opposing the prohibition of online gambling not all that long ago. Although Paul’s stock has diminished since retiring from Congress, his stances on issues proved popular enough to get him seven years in office and fund several Presidential bids.

Additionally, stances can change and deals can be made. A pivot from opposing gambling expansion to letting the free market decide would not be as drastic a change for the Texas GOP as, say, reversing its stance on abortion or the Second Amendment.

Make no mistake, legal sports betting is an underdog in Texas over the near term. However, one thing any sports bettor can tell you is underdogs do sometimes defy the odds. Although Texas will almost certainly not be the first state to embrace sports betting, the nation is a whole seems to be drifting in a direction more accepting of sports betting. Texans who dream of dropping a few bucks on the Cowboys will probably be able to do exactly that one day – just not any time too soon.