TLDR:
- Texas unlikely to legalize sports betting before 2027 due to increased opposition
- Casino legalization efforts by Las Vegas Sands complicating sports betting prospects
- Anti-gaming groups more organized and vocal in opposing gambling expansion
- Republican party platform instructs lawmakers to oppose gambling expansion
- Economic arguments for sports betting being overshadowed by broader anti-gambling sentiment
The path to legal sports betting in Texas has hit unexpected roadblocks, with recent developments pushing potential legalization back to 2027 at the earliest.
This delay, highlighted in a report by advisory firm Eilers & Krejcik Gaming (EKG), stems from a complex interplay of political and social factors centered around the broader debate on casino legalization in the state.
Texas, the second-largest state without legal sports betting, has been removed from EKG’s list of states likely to legalize in 2025.
The firm now projects legalization could occur in November 2027, with a potential launch in fall 2028, coinciding with the NFL season opener.
At the heart of this setback is the renewed push for casino legalization led by Las Vegas Sands. The casino giant has invested millions over the past decade in efforts to bring casinos to Texas. However, this campaign has inadvertently complicated the landscape for sports betting advocates.
The intensified lobbying for casinos has sparked a fierce backlash from anti-gaming groups. These organizations argue that legalizing casinos would lead to various social and economic problems, including gambling addiction and crime.
Their heightened opposition to gambling in general has spilled over into the sports betting discussion, creating a more challenging environment for its advocates.
The political landscape in Texas further complicates matters. The state’s Republican Party platform, published in June, explicitly instructs lawmakers to oppose any gambling expansion and any budget relying on funds from expanded gambling.
This stance reflects the traditionally conservative approach to gambling in Texas, with Governor Greg Abbott and Lieutenant Governor Dan Patrick expressing reservations about legalizing any form of gambling.
Despite these challenges, proponents of sports betting continue to argue for its economic benefits. They contend that Texas is missing out on substantial revenue by not legalizing sports betting, especially given its large population and strong sports culture.
Neighboring states like Louisiana and Arkansas have already legalized sports betting, potentially drawing revenue away from Texas.
Estimates suggest that legalizing sports betting could generate hundreds of millions of dollars annually for Texas. This revenue could be used to fund public services, infrastructure projects, or education.
The rise of online and mobile sports betting platforms has made it easier for Texans to place bets in states where it is legal, further eroding potential state tax revenues.
As Texas approaches its 2025 legislative session, the battle lines are clearly drawn. On one side are powerful lobbying groups pushing for casino legalization, while on the other are anti-gaming advocates and conservative lawmakers wary of gambling expansion. The sports betting issue finds itself caught in the middle of this larger debate.
The EKG report suggests that the same groups mobilizing against casinos are likely to resist sports betting, viewing it as a precursor to broader gambling expansion in the state.
This has led to a situation where the economic arguments for sports betting are being overshadowed by the broader anti-gambling sentiment.
Some voices within the state see sports betting as a more palatable alternative to casinos, arguing it could tap into new revenue streams without the broader social implications associated with brick-and-mortar casinos.
However, these voices are increasingly being drowned out by the broader anti-gaming narrative that has taken hold in the state.
The House of Representatives passed an online sports betting bill in 2023, but EKG notes that the Senate is the chamber that matters, and things there are not moving in the right direction.
The state Republican Party platform even explicitly addresses the warmer reception expansion has had in the House, calling on lawmakers to oppose any effort from House leadership to pressure members to vote for expanded gambling.
11