DraftKings Zeroing in on Texas?

During DraftKings CEO Jason Robins’ First Quarter Financial Reporting media appearance, he hinted at the company’s potential expansion into the Texas market, despite it not yet being legalized. DraftKings is a top sports betting site.

Texas is still considered a highly desirable market for the U.S. sports betting industry, despite the lack of legalized sports betting in the state. While nearly half of Americans can legally bet on sports in their state, populous states like Texas, California, and Florida have yet to launch widespread sports betting platforms. Although Florida introduced sports betting in 2023, residents are limited to using the Hard Rock Bet platform.

Jason Robins is making sure his company is prepared for a potential launch in the Lone Star State once lawmakers approve a sports betting platform.

The Texas legal sports betting battle

Jason Robins is hopeful that legal sports betting could come to Texas, as it was approved by the state House of Representatives in 2023. This would allow residents to take advantage of our DraftKings promo code.

Bill HJR 102 was successfully passed in the recent legislative session with a vote of 97-44. The following day, it received the necessary two-thirds vote of 101-42 in the House. This bill aimed to allow Texas residents to vote on a Constitutional Amendment in the upcoming November election.

Rep. Dan Huberty stated that Texas should implement a stringent regulatory policy regarding this matter for the state’s best interests. Acknowledging that it is already occurring, he emphasized the importance of transparency, trustworthiness, and integrity in the process, while also noting that it could bring in additional revenue for Texas.

The issue arises from the fact that the Texas Senate has a reputation for being an obstacle because of its conservative beliefs and historical resistance to a legalized sports betting platform.

The Texas legislative session is set to conclude on May 29, and it appears that Senate Republicans will not reach a consensus, effectively delaying the legalization of sports betting in the Lone Star State until at least 2025. Since the state legislature convenes every two years in Texas, any significant legislative progress will be put on hold until 2024 comes to an end.

Saying the quiet part out loud

During a conference call discussing DraftKings’ recent quarterly earnings report, Jason Robins expressed his company’s interest in expanding into Texas. He indicated that Texas is a key state that DraftKings will focus on in the future.

He expressed optimism during the call, stating that Texas has a strong chance at passing a sports betting bill. He noted that the bill made it through one chamber last year and with the Texas legislature not meeting until 2025, they are actively preparing for that year.

On the line

With a population of over 30 million residents, Texas is the second-most populous state in the country. The state is known for its iconic professional sports teams including the Dallas Cowboys, Houston Texans, Texas Rangers, Houston Astros, Houston Rockets, Dallas Mavericks, and Dallas Stars. College athletics are also a huge part of the sports culture in the Lone Star State.

If Texas can overcome the final hurdles, it has the potential to become the largest legal sports betting state in the country, as California and Florida continue to struggle with reaching a consensus on the issue. Texas currently only has one sports betting brand, Seminole Tribe’s Hard Rock Bet, operating in the state.

Before the House vote, it was projected that up to $40 million in yearly tax revenue could be generated for state and local funds in need. The primary recipients under the House plan would be educational initiatives for the state’s 2,813 public and 427 private schools.

Not only Texas

DraftKings is dedicated to expanding its legal sports betting platform into various new locations. In addition to playing a significant role in the recent launch of sports betting in North Carolina, DraftKings is also actively involved in efforts to legalize sports betting in Missouri through the Winning for Missouri Education initiative.

Last Thursday, over 340,000 signatures advocating for the legalization of sports betting in Missouri were submitted to the state’s Secretary of State.

DraftKings is gearing up for a launch in Puerto Rico and will be focusing on its newly acquired Jackpot Lottery app, which will soon be introduced to different markets across the country.