Texas Sports Betting: Legal Underscoreg Outlook for 2024

Is Texas sports betting legal?

In Texas, sports betting is currently illegal. While you can bet on horse and greyhound racing, traditional sportsbooks, whether online or in person, are not allowed at this time.

Yet, optimism for the legalization of sports betting in Texas is at an all-time high. In a significant development, two sets of bills – HB 2843 and HJR 155, and HB 1942 and HJR 102 – have successfully made it through the House’s state affairs committee. This progress marks the furthest advancement of any sports betting legislation in Texas since the overturning of PASPA in 2018.

Despite the positive momentum, the bills still have a challenging journey ahead. If they were to be approved by the House, they would then need to navigate the Senate and face opposition from Lieutenant Governor Dan Patrick, who has not shown strong support for legalizing sports betting in Texas.

The Texas Sports Betting Alliance reported that almost 75,000 Texans attempted to place bets on college basketball through their phones during March Madness. While these attempts were unsuccessful, they highlight the strong desire for legalized sports betting in the Lone Star State.

To stay updated on the latest legal developments in Texas and all other states across the U.S., be sure to visit our legal sports betting state tracker.

Texas sports betting key developments and updates

During the Q1 Financial Report media call, DraftKings CEO Jason Robbins expressed hope for Texas to legalize sports betting in 2025, stating, “I believe Texas has a strong chance.”

On May 11, 2023, the House approved HJR 102, a related bill to HB 1942 that would allow state voters to decide on the legalization of sports betting. The legislation will now be reviewed by the Senate.

House Bill 1942, aimed at legalizing online sports betting in Texas, is referred to the House Committee on Calendars on April 18, 2023.

On March 28, 2023, Lieutenant Governor Dan Patrick announced that there is insufficient support in the Senate to approve a bill legalizing sports betting.

On January 15, 2023, Jerry Jones, one of the co-owners of the Dallas Cowboys, publicly expresses his endorsement for the legalization of sports betting in the state.

On November 8, 2022, Governor Greg Abbott is reelected and expresses openness to the idea of legalizing sports betting in Texas.

In a statement on July 13, 2022, renowned bettor Jim “Mattress Mack” McIngvale forecasts that legal sports betting in Texas will be in place by 2027.

Texas lawmakers have decided to postpone any further discussions on a sports betting bill until 2023.

In February 2021, the Sports Betting Alliance, comprised of professional sports teams, betting operators, and fans, comes together to support the legalization of sports betting in Texas.

In May 2018, the United States Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), giving individual states the authority to decide on the legalization of sports betting within their jurisdictions.

Texas sports betting quick facts

Likely Texas sports betting sites

As we await the announcement of licensed online sportsbook operators in Texas, we can look to the launches of legal sports betting in other states for a glimpse of what to expect. Here are the top sports betting sites and apps that are anticipated to be among the first to launch in the Lone Star State.

DraftKings Texas

DraftKings rose to prominence with its top-tier daily fantasy sports competitions and has since evolved into a giant in the industry. The company now offers one of the highest-rated sports betting apps nationwide, with a focus on providing a premier user experience, excellent sportsbook promotions, secure banking options, loyalty rewards, and responsive customer service. With no need for a DraftKings promo code, it is considered one of the top sports betting sites in the country.

• App store ratings: 4.8 (iOS), 4.6 (Android)
• Sign-up bonus: TBD
• Payout speed: 1-7 business days

For more information on DraftKings’ sports betting platform, please refer to our DraftKings review.

FanDuel Texas

FanDuel has quickly become a popular choice for sports bettors in the United States due to its excellent reputation and easy-to-use interface. New users can enjoy attractive bonuses without needing a FanDuel promo code. What makes FanDuel stand out are its exclusive partnerships with professional sports leagues, live in-game video streaming of major events, same-game parlays, and loyalty rewards. It is considered one of the top live betting sites available.

• App store ratings: 4.8 (iOS), 4.7 (Android)
• Sign-up bonus: TBD
• Payout speed: 1-7 business days

Explore our in-depth FanDuel review for comprehensive expert analysis.

Caesars Texas

Caesars’ online sportsbook and betting app are highly rated nationwide for their exceptional user experience, accessible customer support, and seamless banking system. The standout feature is their generous standard welcome bonus, offering new users up to $1,000 on Caesars. If this renowned operator launches in Texas, you may need a Caesars promo code to get started.

• App store ratings: 4.6 (iOS), 4.5 (Android)
• Sign-up bonus: TBD
• Payout speed: 1-5 business days

Want to learn more about the sportsbook? Check out our in-depth review of Caesars.

BetMGM Texas

BetMGM, a renowned brand in the industry, stands out from its competitors with its extensive selection of parlay options. Dubbed the “King of Parlays,” BetMGM offers more choices for this type of bet than any other sports betting site, covering major leagues like the NBA, NFL, NHL, and MLB, as well as niche markets including the WNBA and MLS. New users can take advantage of BetMGM’s welcome bonus, a $1,500 first-bet insurance offer that can be unlocked with a BetMGM promo code.

• App store ratings: 4.8 (iOS), 4.6 (Android)
• Sign-up bonus: TBD
• Payout speed: 2-8 business days

For more detailed information, check out our comprehensive BetMGM review.

PointsBet Texas

PointsBet is ready to make a big impact in Texas when sports betting becomes legal. With its innovative mobile app, easy-to-use interface, and extensive selection of betting options, PointsBet is already standing out from the competition. Its special features, such as PointsBetting, add an extra layer of excitement for users. Plus, you don’t need a promo code to access any of PointsBet’s offers.

• App store ratings: 4.8 (iOS), 4.6 (Android)
• Sign-up bonus: TBD
• Payout speed: 1-5 business days

Explore our comprehensive PointsBet review to discover more information about the platform.

Texas sports betting neighbors

If you’re a casual bettor, you may be surprised to learn that three out of the four states bordering Texas – Arkansas, Louisiana, and New Mexico – have legalized sports betting. Here are some important details about each market if you’re interested in placing bets before sports betting becomes legal in Texas.

Arkansas

• Arkansas sports betting launch date: March 5, 2022
• Number of online sportsbooks: 3
• Remote registration: Yes
• Tax rate: 13%

Louisiana

• Louisiana sports betting launch date: Oct. 6, 2021
• Number of online sportsbooks: 8
• Remote registration: Yes
• Tax rate: 15%

New Mexico

• New Mexico sports betting launch date: Oct. 16, 2018
• Number of online sportsbooks: 0 (4 retail options)
• Remote registration: No
• Tax rate: 6%

Recently, well-known Texas sports bettor Jim “Mattress Mack” McIngvale has visited Caesars Underscoreg in Lake Charles, Louisiana multiple times to place bets worth millions of dollars. His actions highlight the possibility of a significant influx of sports bettors from Texas crossing the border to gamble, potentially diverting revenue that could have stayed within the state.

How to start betting in Texas

Even though sports betting is currently illegal in Texas, the sign-up process for online sportsbooks has been reliable in states where it is regulated. To get ready for when Texas does eventually legalize sports wagering, we have created an easy-to-follow guide to help you prepare for placing bets on events like the Super Bowl or Houston Astros games.

1. Select a licensed Texas sportsbook

After sports betting becomes legal in Texas and the state regulator grants licenses to the initial group of online betting platforms, it is important to carefully evaluate each option to determine the best fit for your preferences. Prioritize Texas sportsbooks that offer generous welcome bonuses, robust security measures, a seamless user interface, and excellent customer support.

When selecting a betting site, make sure to evaluate its mobile app as well. Once you have made your choice, download the app onto your Apple or Android device to enhance your betting experience.

2. Register online

Afterwards, you must create a new account using either a desktop or mobile device. The operator will ask for essential personal details like your name, address, phone number, email, and social security number. Providing your social security number helps confirm your identity and prevents misuse of bonuses.

Next, you will be prompted to generate a distinct username and password. A secure sportsbook password should consist of a combination of upper and lowercase letters, numbers, and special characters, typically being around eight characters in length.

3. Deposit and claim a bonus

Once you finish registering and log in to your account for the first time, you should visit the cashier to make your first deposit. Many online sportsbooks in the US accept major credit and debit cards, bank wire transfers, and third-party services such as Paypal.

During this stage, certain operators may ask you to enter a promo code in order to claim a welcome bonus. Make sure to have the code readily available so you remember to input it before depositing funds into your account.

4. Select and finalize your bet

Now that you have money in your new sportsbook account, it’s time to explore the various betting markets. Most online sports betting sites in Texas will have odds for the major leagues such as the NFL, MLB, NBA, and NHL, as well as popular bet types like moneylines, point spreads, and totals. However, the top Texas sportsbooks will also offer live in-game betting, parlays, same-game parlays, teasers, and player prop bets.

Before you can legally place your first bet in TX, take the time to read our comprehensive guide on sports betting.

5. Withdraw your winnings

After winning your first bet and celebrating, it is recommended to cash out your winnings. Visit the cashier where you made your initial deposit and request a withdrawal. Approval for withdrawals typically takes less than two business days, although it may take up to five business days for the funds to be delivered to your primary banking account, even with the best online sportsbook for payouts. Accepted banking methods for withdrawals include bank wire transfers, third-party e-wallets, and physical checks sent by mail.

What’s missing from Texas sports betting?

Once online sports betting is legalized in Texas, bettors will have plenty to look forward to. However, there will still be certain events and categories that are restricted.

Politics ❌

At the federal level, it is against the law to bet on political events in the United States. This means that even if a bill allowing Texas sports betting is approved, you will still not be allowed to place bets on things like U.S. presidential election odds.

Entertainment award ceremonies ❌

It is yet to be determined if legal Texas online sports betting will include wagers on entertainment award ceremonies like the Oscars, Grammys, and Emmys.

Esports ❌

Just like award ceremonies, the issue of betting on esports has not been officially addressed. With the rapid growth of video game tournament markets, it would be logical to incorporate esports into a potential Texas sports betting legislation.

What about daily fantasy sports? ✅

As of 2019, daily fantasy sports are permitted in Texas due to being classified as a game of skill rather than chance. This allows individuals to participate in DFS contests through platforms such as DraftKings, FanDuel, and Monkey Knife Fight.

Texas college sports betting 🎓

While some states have imposed limitations on in-state collegiate sports betting or even banned the market entirely, it would not be in Texas’ best interest to prevent bettors from placing wagers on popular teams such as the Texas Longhorns, Texas A&M Aggies, Houston Cougars, Baylor Bears, Texas Christian Horned Frogs, and Texas Tech Red Raiders. These dedicated fan bases have the potential to bring in significant revenue for sports betting, particularly during major events like March Madness.

Texas sports betting taxes

The House’s state affairs committee recently approved two active Texas sports betting bills, HB 1942 and HB 2843, which include provisions for taxing both operators and bettors.

Mobile sportsbook operators are required to pay a $500,000 application fee, which must be renewed every three years at a cost of $100,000. Retail operators must pay a $50,000 license fee. Both online and retail sports betting gross revenue will be taxed at a rate of 10%.

Individual bettors would be subject to a 6.75% state tax on their winnings, in addition to the standard 24% federal tax rate on gambling profits. However, they can deduct their betting losses to lower their overall tax liability. To reduce the tax impact of sports betting profits, it is important to maintain detailed and accurate records of your betting activity so that you can easily report only your net profits at tax time.

Projected revenue from sports betting in Texas is estimated to range from $1.5 billion to $2.5 billion in the inaugural year, contingent upon the number of mobile and retail operators that initiate operations during that period.

Texas sports leagues and teams to bet on

Once online sports betting is officially launched in Texas, the urge to support local teams such as the Houston Astros and Dallas Cowboys will be strong. While it can be enjoyable to place bets on your favorite team, it’s crucial to avoid letting emotions dictate your wagers and risking financial losses.

Before betting on your favorite Texas pro or collegiate team, make sure to properly manage your bankroll and conduct thorough research. This includes checking the weather, staying updated on injuries, analyzing depth chart changes, and reviewing matchup statistics.

Texas online sports betting sites are expected to offer betting markets for not only the four major leagues but also for niche sports like Major League Soccer and the WNBA.

Be sure to carefully search through the top sportsbooks for individual sports, leagues, and events as you anticipate the launch in Texas.

Responsible Texas sports betting

Since sports betting is not yet legal in Texas, the state has not yet chosen a regulatory entity. The Texas Lottery, the Texas Racing Commission (TXRC), or a new commission could potentially take on this role. Regardless of the chosen body, the regulator will be responsible for reviewing applications, issuing licenses to operators, conducting regular audits, enforcing gaming laws, and imposing fines.

If sports gambling is legalized in Texas, the state regulator will be responsible for implementing responsible gaming initiatives, such as prevention, treatment, and counseling resources. The regulator may collaborate with licensed sportsbook operators to offer additional responsible gaming measures, like session limits and bankroll budgets.

National U.S. gambling hotline: 1-800-GAMBLER

List of Texas sports betting resources

Texas Legislature Online is the official website for the state legislature of Texas.

Website dedicated to providing comprehensive information on the gambling laws in Texas.

The Nation Council on Problem Gambling is the premier source for promoting responsible gambling in the state.

Underscoregs to avoid in Texas

Since Texas does not have any legal sportsbooks, residents may be enticed to use offshore betting sites. However, these sites are unlicensed and unregulated, making them susceptible to fraudulent behavior like withholding winnings. Instead of risking your money with these illegal options, it is advisable to travel to a neighboring state where sports betting is permitted.

Here are only a handful of offshore operators that should be avoided:

Growth of sports betting 📈

After the repeal of PASPA by the U.S. Supreme Court in 2018, legal sports betting in the United States experienced a rapid surge in growth. Nearly thirty states have now legalized various forms of sports betting, with the most common regulations allowing for the licensing of online sportsbooks and mobile betting apps. Explore our legal sports betting tracker for detailed information on the status of sports betting in any state of interest.

In the last two years, states such as Ohio and Massachusetts have seen tremendous success with their online betting platforms. This has not only provided sports fans with a new way to support their favorite teams, but has also generated significant revenue for the states through licensing fees and taxes.

On March 11, 2024, legal sports betting officially launched in North Carolina, introducing eight top sportsbooks to the Tar Heel state. With major events like the Copa America and Euro 2024 soccer tournaments taking place throughout the summer, the excitement and opportunities for sports betting enthusiasts are on the rise.