Legal Sports Betting In Texas Is Back On The Table

As the saying goes, everything is bigger in Texas, and it’s safe to say the Lone Star State is among the biggest prizes for the gambling industry. But legalizing sports betting will likely need a Texas-sized miracle to become a reality in 2021.

Texas lawmakers recently introduced a pair of bills, House Bill 2070 and companion legislation in Senate Bill 736, to legalize sports betting.

These latest efforts to legalize sports betting in Texas, introduced by State Rep. Dan Huberty and Senator Juan Hinojosa, seek to decriminalize sports wagering. Each bill is tied to a resolution that allows voters to approve a constitutional amendment legalizing sports betting. The catch is, the resolutions require a two-thirds majority vote. 

What HB 2070 Hopes to Achieve

If Rep. Huberty’s HB 2070 passes, the bill will decriminalize sports betting on Jan 1, 2022.  Tied to the bill is House Joint Resolution 97, which calls for the question of a constitutional amendment to go on the November ballot, where voters will be asked to approve or deny: The constitutional amendment authorizing the legislature to legalize sports wagering in the state.

Sports Teams as Sports Betting Operators

What makes the proposed bill a bit of an outlier is it will allow Texas professional sports teams to apply for sports betting licenses. Only three other jurisdictions in the US have this option: Illinois, Virginia, and Washington DC.

There are currently 13 professional sports teams in Texas, including the  NFL, NBA, and MLB.

Leagues will be allowed to “enter a commercial agreement with a sports wagering operator under which the sports governing body may share in the amount wager or revenues derived from sports wagering on the sports governing body’s sporting events,” according to the wording of the bill.

 Some Other Highlights of HB 2070 include:

• Imposes a 10% tax on operators’ adjusted gross revenue.
• Sports wagering would be allowed at the three Class 1 horse race tracks in Texas, namely the Retama Park in Selma, San Antonio, the Sam Houston Race Park in NW Houston, and the Lone Star Park in Grand Prairie, Dallas.
• Sports wagering would also be allowed at greyhound tracks.
• Limits licensees to a single skin. As such, licensees will not be allowed to launch a second (or more) online sportsbook.
• Does not prohibit betting on in-state college sports.

What Betting in Texas Looks Like Right Now

Texas has always lagged behind other states when it comes to legalizing any form of betting. But with land-based casinos entering the conversation, along with sports betting, the state’s aversion to gambling could be thawing.

Nor is Texas a gambling-free state. It has a state lottery in place, and casino gambling can occur at a few remote Native American casinos – none of which are near major metropolitan areas. There’s also the Jackpocket online lottery app and membership-only poker clubs.

However, there is no ignoring the growth of casinos all along Texas’ border with Louisiana and Oklahoma, and Texas doesn’t want to miss out on those gambling dollars if they’re going to slip across the border anyway.

Supporters of legal sports betting in Texas believe that the industry can boost the state’s budget by $400 million. But, anti-gambling Republicans seem to have a stronghold on Texas politics, and any attempt to pass gambling expansion bills over the years has been quickly shot down.

It doesn’t help that the current Lieutenant Governor Dan Patrick is vehemently against the idea of legal sports betting.  Several weeks ago, he said in an interview on the Chad Hasty Show on KFYO that “it’s not even an issue that’s going to see the light of day this session.”

It is expected that the Lieutenant Governor and his political allies will make every effort to block the bill’s passage. With two-thirds majorities required, sports betting opponents may not have to try very hard.

Sports Betting Advocates Not Giving Up Just Yet

As strong as the opposition to sports betting in Texas is, there is still a strong movement among those in favor.

Perhaps the most vocal group is the Sports Betting Alliance, made up of a dozen high-profile sports teams such as the Dallas Cowboys and the San Antonio Spurs. Also forming part of the alliance are major sportsbook operators such as FanDuel and BetMGM.

The alliance is pushing the two recently introduced bills, arguing that Texans should have the right to vote on legal wagering.

Texas remains a prime target for the sports betting industry, with a significant number of professional sports teams, a huge fan base, and a population of over 30 million people.

Professional sports handicapper Lee Sterling told KVUE radio: “You’re going to see bigger crowds at games because they’re going to want to be involved. They can wager on in-game wagers, individual plays, and the fans will want to stay there until the end of the games. It’s exciting and if done correctly, I think it’s a win-win for everyone.”

There is still hope that the new sports betting legislation proposals will be assigned to a committee and be heard in the 14 weeks left in the 2021 session, but Texas appears to be trending negative on the legalization front.