A recent study by Eilers & Krejcik reveals the staggering potential of legal sports betting in Texas. The analysis projects over $360 million in annual tax revenue, $24.3 million in additional non-gaming taxes, and a $2.6 billion economic impact.
Moreover, it estimates that legalization could create 8,000 new jobs, making a strong case for lawmakers to reconsider their stance.
“By legalizing sports betting, Texas can reap the financial benefits for the state’s taxpayers and put the power back in the hands of the people,”
said Neil Leibman, co-owner of the Texas Rangers and a vocal advocate for sports betting reform.
Despite the obvious economic advantages, Texas remains one of 11 states where sports betting is still illegal. Efforts to introduce legislation have faced significant resistance, particularly in the state Senate.
Political Barriers Persist
The political landscape in Texas poses a formidable obstacle to sports betting legalization. While the state House passed a sports betting bill (HB 1942) during the 2023 legislative session, it stalled in the Senate, largely due to opposition from Lieutenant Governor Dan Patrick.
Patrick, a staunch conservative, has made it clear that gambling legislation will not progress without majority Republican support in the Senate — a threshold that remains elusive.
“Could you get a critical mass to be able to get it through the House again? I think you could,”
said political scientist Jon Taylor of the University of Texas at San Antonio.
“The problem, again, is Lieutenant Governor Dan Patrick in the State Senate.”
Adding to the complexity, the Senate’s makeup is unlikely to shift significantly in the near term. With nearly all incumbents expected to retain their seats in upcoming elections, the path to Senate approval remains narrow.
Ryan Butler, senior editor at Covers.com, noted that leadership changes could impact the outlook, but not necessarily for the better.
“If Donald Trump wins the presidency, there’s a decent chance Dan Patrick ends up in the administration,”
Butler said.
However, his potential successor, Sen. Charles Schwertner, is reportedly just as opposed to sports betting as Patrick.
A Long Shot for 2025
Despite the obstacles, stakeholders remain optimistic about the future of sports betting in Texas. Industry leaders such as DraftKings TX, FanDuel, and BetMGM, alongside professional sports teams, are actively lobbying for reform.
The gaming industry’s financial contributions to political campaigns could influence lawmakers’ willingness to revisit the issue.
“What’s interesting…is if you look at the members of the State Senate, the Republican members, there are some that are getting donations from casino groups, from gaming groups,”
Taylor said, suggesting that shifting financial dynamics could eventually sway opinions.
Still, the odds remain slim for 2025. Taylor estimates the likelihood of passage at less than 30%, citing entrenched opposition and minimal changes in the Senate’s composition.
“Texans love to gamble, and they love to elect lawmakers to prevent them from doing so,”
Butler quipped, summarizing the paradox of public sentiment versus legislative action.
