Texas Sports Betting

Texas betting options are limited amid a general aversion to most things gambling across the state. Daily fantasy sports apps and social sportsbooks are currently the closest alternatives to online sports betting in Texas.

Sports betting remains prohibited in Texas, but lawmakers have introduced several bills in recent years to change the law in that regard. If approved, the latest Texas sports betting bills would mark a significant departure from the state’s longstanding hesitancy to expand residents’ legal gambling options.

Until state law changes, daily fantasy sports sites and player props prediction apps will remain the closest alternative to online sportsbooks in Texas. Horse racing wagering is also legal, but fans may only place wagers in person at licensed race tracks. Online horse racing betting remains prohibited.

Legal Texas Betting Sites

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Texas Sports Betting Efforts

Sports betting is illegal in Texas, but proponents are increasingly optimistic they can pass legislation to bring online sportsbooks to the Lone Star State. In the meantime, Fliff Social Sportsbook offers a very close alternative to sports betting based on sweepstakes law. It looks and feels like a real online sportsbook but conforms to all state and federal laws.

Lawmakers introduce legislation every year to regulate Texas online sports betting, and their efforts are gaining momentum. They also have the support of influential allies, including former Governor Rick Perry, Dallas Cowboys owner Jerry Jones, multiple professional sports franchises, and online sportsbook operators.

The latest Texas sports betting efforts include several bills introduced for the 2023 legislative session. First was SJR 17, prefiled in late 2022 by Senator Carola Alvarado. The bill is light on details, but it would authorize up to four commercial casinos and legalize sports wagering if approved by voters in a statewide referendum.

Texas lawmakers also introduced a pair of companion bills (HB 1942 and SB 715) in early 2023 that call for a statewide referendum to authorize online sports betting.

If approved by a majority of voters, the proposal would place the Lottery Commission in charge of regulating Texas sports betting sites and establish some basic ground rules:

  • Authorize online sports wagering only
  • Professional sports franchises, race tracks, and PGA-level golf courses may apply for sports betting licenses
  • Bettors must be 21 or older
  • Allow wagers on professional and college sports, esports
  • $500,000 licensing fee and 10% tax on revenue

Early Texas Sports Betting Efforts

One of the first efforts to legalize Texas sportsbooks occurred in 2019 with the introduction of HB 1275 by Sen. Eddie Lucio.

HB 1275 and an accompanying joint resolution called for a statewide referendum that would amend the Texas Constitution to give the Texas State legislature authority to legalize sports betting. Had it passed and received the approval of voters, HB 1275 would have authorized retail sportsbooks and online sports betting apps with a tax rate of 6.25% on handle.

In December 2021, Representative Dan Huberty gave the keynote speech at the National Council of Legislators from Gaming States convention in Austin, Texas. As gaming attorney Daniel Wallach reported, Rep. Huberty said he’s optimistic Texas could legalize sports betting in 2023:

“I really believe there’s an opportunity here to pass sports betting in 2023. If you present it to the voters in the right way, it’s gonna pass. It will pass.”

Pro-gaming lawmakers introduced multiple bills (SB 736, SJR 39, and HB 2070) in 2021 to legalize retail sportsbooks and online sports betting sites, but none made it past the committee phase.

The 2021 legislative session ended without progress on legal sports betting, leaving 2023 as the next opportunity for lawmakers to try again. In the final months of 2022, State Senator Carol Alvarado prefiled Joint Resolution 17 for the 2023 session. If approved by lawmakers and a public vote, Joint Resolution 17 would legalize commercial casinos and sports betting in Texas.

Where Texas Stands on Sports Betting

Texas must overcome two major hurdles to legalize sports betting. First, it must gather the political willpower to pass new legislation. Social conservatives hold considerable sway in the Texas legislature, and they aren’t enthusiastic about expanding gambling.

The lack of political will remains the most significant challenge Texas sports betting proponents must overcome. Lawmakers who support legalizing Texas sports betting face significant opposition from the Texas GOP itself, which opposes all gambling expansions. Item 153 from the Texas GOP platform states plainly:

153. Gambling: We oppose the expansion of legalized gambling.

Additionally, legalizing Texas sports betting will require a constitutional amendment and receiving the approval of a majority of voters.

Despite the challenges, Texas remains a prime target for the sports betting industry with numerous pro sports teams, a massive fan base and a population of approximately 30 million. In addition, previous legislation had the support of a group including the Dallas Cowboys, Dallas Mavericks, Houston Rockets, DraftKings, FanDuel, and Penn National. Proponents have gained additional allies since, with former Governor Rick Perry becoming a spokesman of the Texas Sports Betting Alliance and Dallas Cowboys owner Jerry Jones coming out in support of legal online betting in Texas.

The American Sports Betting Coalition has estimated that a legal and competitive Texas sports betting market could add $1.7 billion to the annual economy and create more than 9,300 jobs. Opponents believe the social and financial costs associated with expanded gambling would outweigh any economic benefits.

Texas Daily Fantasy Sports

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Texas daily fantasy sports sites serve as a close alternative to online sports betting. Although Texas has never formally legalized fantasy sports, neither has it outlawed them. As a result, DFS and player props apps like PrizePicks, OwnersBox, and ParlayPlay are open for business in Texas.

Sports fans can read more about the legal situation and see BettingUSA’s highest-rated Texas fantasy sports sites below:

Texas Online Horse Racing Betting

Online horse racing betting in Texas is prohibited. Locals can bet on live horse races in person at any of the state’s authorized race tracks, which also offer simulcasting for betting on races held elsewhere.

Texas race tracks have experienced a significant decline since the year 2000. The state’s remaining tracks struggle to keep up attendance or provide significant purses for racing teams. State lawmakers compounded the problem in 2011 by amending the Texas Racing Act to prohibit advance deposit wagering (taking bets online).

Prior to the law coming into effect, customers inside Texas and around the country could use betting websites such as TVG and TwinSpires to place wagers on races hosted at Texas race tracks. Those wagers were comingled with wagers that were placed in person, thereby increasing the betting pool and building larger purses.

The 2011 amendment put an end to that for reasons unclear to this day. The Texas Racing Act now includes the following text:

“The commission shall adopt rules to regulate wagering on greyhound races and horse races under the system known as pari-mutuel wagering. Wagering may be conducted only by an association within its enclosure. A person may not accept, in person, by telephone, or over the Internet, a wager for a horse race or greyhound race conducted inside or outside this state from a person in this state unless the wager is authorized under this Act.”

TwinSpires.com continued accepting wagers from residents of Texas until it was issued a subpoena in 2012. TwinSpires initiated a lawsuit on the basis that the amendment violated the Commerce Clause of the US Constitution. The lawsuit was dismissed and TwinSpires stopped accepting wagers from Texans in 2013. Today there are no legal options for betting on horses or greyhounds in the state.

Efforts to Legalize Advance Deposit Wagering

A new effort to legalize online racing betting in Texas emerged in 2017 with the introduction of HB 3926. This bill was introduced on March 10th of 2017 and it sought to amend the Texas Racing Act to allow Texans to bet on greyhound and horse races that take place inside and outside of Texas via legal betting sites.

This bill appeared to have a decent chance of success for two primary reasons. First, the bill was driven by motivations to fund popular items in Texas – the text of the bill explains that one of its primary purposes was to raise money to provide better body armor for Texas law enforcement officers. Additionally, the bill sought to raise money for charity, with players maybe even being given the option to choose which charities they wish to support as they play.

Secondly, the bill had the support of the horse racing industry in Texas. In a quote provided to Bloodhorse.com, the executive director of the Texas Thoroughbred Association offered his support of the bill and said that it has the potential to raise significant money for horse racing purses.

That bill died in committee with the last action happening way back in April of 2017. Since then, no other serious measures to legalize sports betting in Texas have emerged.

Texas Racetracks

There are three dedicated race tracks and one county fair that host parimutuel horse wagering:

Thoroughbred and quarter horse racing from July – September and year-round simulcast wagering

1 Retama Pkwy
Selma, TX 78154

Thoroughbred racing from January – March, Arabian racing from January – March, quarter horse racing from March – May and simulcast wagering year-round

7575 North Sam Houston Pkwy W
Houston, TX 77067

Thoroughbred racing from April – May, quarter horse racing from September – November and simulcast wagering year-round

1000 Lone Star Parkway
Grand Prairie, TX 75050

Thoroughbred and quarter horse racing from July – August and simulcast wagering year-round

530 Fair Drive
Fredericksburg, TX 78624

A fourth racetrack with live racing and simulcasting is in progress as well after Jefferson County voters approved a racetrack in East Texas. In November 2020, Jefferson County Commissioners approved the Port Arthur Renaissance Group to purchase the Ford Park Entertainment Complex, clearing the way for the construction of a racetrack and hotel.

Texas Online Gambling

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Online gambling is prohibited in Texas under state law. Under TX Penal Code § 47.01-47.11, it is a Class C misdemeanor for anyone who:

(1)  makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest;

(2)  makes a bet on the result of any political nomination, appointment, or election or on the degree of success of any nominee, appointee, or candidate; or

(3)  plays and bets for money or other thing of value at any game played with cards, dice, balls, or any other gambling device.

Class C misdemeanors in Texas are punishable by a fine of not more than $500.

However, exceptions to the law are provided for gambling activities that occur in a private place, all players compete on equal ground, and that no one receives any economic benefit other than personal winnings.

Texas also considers it a Class A misdemeanor to be involved in the “promotion of gambling.” This would include operating a gambling location where a profit is taken by the house, engaging in bookmaking, or selling tickets to unlicensed lotteries. Class A misdemeanors are punishable by a fine not exceeding $4,000 and a stint in jail not exceeding one year.

Until state law changes, online casinos and poker sites will remain prohibited in Texas. The law could also be potentially applied to individuals who participate in illegal online gambling as players, although authorities are not known to pursue such cases.

Texas Senator Leticia Van de Putte (D) put forth a joint resolution in 2013 to legalize and regulate online poker at the federal level. The resolution would have needed support from both the House and Senate to pass and it was unable to do so. Even so, the measure shows that at least some Texas lawmakers have poker on their minds.

Representative Joe Barton (R) put forth the Internet Poker Freedom Act of 2013 (HR 2666) to also legalize online poker at the national level. This bill sought to set up a licensing system by which online poker sites could apply for 5-year licenses to host real money poker games across the nation. HR 2666 never made it past the Subcommittee stage and is dead for all intents and purposes.

The passage of HR 2666 would have been a game-changer for online poker in the United States. If passed, it would have set the stage for a national player pool and a return of Texas Holdem to the US. Individual states would retain the right to opt-out. Although HR 2666 did not specifically pertain to Texas, the bill would have certainly had an impact on Texas.

Texas Online Lottery

The Texas State Lottery offers a variety of draw games that includes smaller, daily draw games, larger state-level drawings, and tickets to Mega Millions and Powerball.

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In addition, lottery players can buy instant-win scratch cards in denominations from $1 to $100.

The Texas Lottery does not authorize or condone online ticket sales, but lottery courier services TheLotter and Jackpocket offer their services to players located within state lines. Anyone 18 or older can visit TheLotter or Jackpocket to register and order tickets online from anywhere in the state.

When customers place orders with a courier service, it purchases official Texas Lottery tickets on their behalf and notifies them of winners. TheLotter and Jackpocket offer tickets to most Texas draw games, but instant win scratch cards remain the sole province of brick-and-mortar retailers.

Texas Sports Betting FAQ

No. Lawmakers have introduced sports betting bills in each of the last two legislative sessions, but none made significant progress before dying.

It’s hard telling because Texas is conservative on matters of gambling, and the legislature only convenes every other year. As a result, it doesn’t take much effort for two years to pass without a sports betting bill even passing a committee vote. However, proponents of sports betting have gained momentum in recent years, and Texas looks increasingly likely to legalize sports betting.

Daily fantasy sports is de facto legal in Texas, but state law does not formally address its legality one way or another. Multiple DFS sites operate in Texas today without issue.

Yes. FanDuel offers daily fantasy sports contests in Texas. FanDuel temporarily stopped serving Texans in 2016 due to legal uncertainty, but it returned roughly two years later and has remained available in Texas since.

Yes. DraftKings DFS contests are open to Texans.

Poker is technically illegal in Texas, but a loophole in state law has given birth to membership-only poker rooms that charge a membership fee rather than rake the pot. However, there is ongoing controversy over the legality of Texas poker rooms.