The high expectations leading into the 2023 legislative session for the legal online sports betting market in Texas faded on Monday when the session ended in Austin.
For many, the end of the session and the reality of the Texas biennial legislative cycle can be a gut punch when a bill dies. Texans must now look ahead to 2025 for the next chance to legalize Texas sports betting and, in all likelihood, 2026 for when they could place their first bets.
“Texans deserve to vote on legalizing sports betting, and we will continue working to put this initiative on the ballot in 2025,” Texas Gaming Alliance spokesperson and former Texas Gov. Rick Perry said in a statement.
That is not to say 2023 was a failure for the legal effort to expand gambling, which included efforts to legalize retail casinos and gambling through state constitutional amendments. Indeed, Texas saw a few firsts for gambling legislation this session.
Gambling expenses receive 1st favorable panel report within the Texas Home
The Texas House State Affairs Committee heard both retail casino and online sports betting bills this session and, for the first time, advanced the measures.
Despite a lengthy committee hearing on both initiatives involving heavy opposition from social conservatives, tribal interests, and community members, Representative Jeff Leach’s online sports betting bill and Representative Charlie Geren’s retail casino bill received favorable votes from the committee.
With several committee members openly opposed to legalized gambling, the vote of support represented less an interest in advancing the bill and more an evaluative statement about the importance of allowing the full House to decide on the issue.
In 2021, sports betting and casino legislation also made it to the House State Affairs Committee. Both received public hearings, but neither received a vote from the committee.
Home sets a brand new precedent simply by advancing gambling legislation
In a close vote that was not without theatrics, the Texas House advanced Leach’s online gambling amendment.
With spirited debate for and against the bill, the Texas House advanced sports betting legislation for the first time in its history. Opposition mounted a strong charge, but ultimately, the House chose to leave the decision to the will of the people by passing the bill.
This decision, perhaps, reflected a point of divergence between the House, which opted to be less prescriptive with legal gambling, and the Senate, which has yet to let gambling legislation receive a public committee hearing.
Casino legislation did not have the votes to advance out of the House.
Gambling was lifeless on introduction in Tx Senate
Nearly as soon as the House passed gambling bills, Lt. Gov. Dan Patrick, who presides over the Senate, took to Twitter to criticize the proponents’ efforts.
“I’ve said many times there is little support for expanding gaming from Senate GOP,” Patrick tweeted. “We polled members this week. Nothing has changed. The Senate should focus on issues voters expect us to. We don’t waste time on bills without overwhelming GOP support. HB1942 won’t be referred.”
A day later, Patrick issued a second tweet:
“Texas is a red state. The House vote on gambling was carried by a Democratic majority,” Patrick tweeted. “The Texas Senate doesn’t pass bills without GOP in the majority. The GOP majority guides our path. HJR102 will also not be referred. Can’t waste committee and floor time in the final days.”
Looking forward to 2025
Led by the Texas Gambling Alliance, 15 of Texas’ professional sports teams, along with the PGA Tour and the Texas Motor Speedway, all sought to obtain a sports betting license under the 2023 legislation.
Leach’s bill, drafted in collaboration with the SBA, provided significant flexibility for sports teams to obtain licenses, offered tax-deductible promotional credits to operators, and proposed a tax rate lower than the national average. The House adjusted the course on the side of the state by increasing the tax rate from 10% to 15% of adjusted gross income.
Representatives seemed to recognize the need to generate as much revenue for the state as possible, so some of the provisions favoring sportsbooks and professional teams may be limited in the upcoming session.
The SBA’s next opportunity to bring sports betting before Texas voters will be in 2025 when the Texas Legislature’s next regular session is scheduled.
“It is disappointing that we didn’t clear the Senate, but we are extremely proud of passing the House,” SBA spokesperson Teknik Gustafson told PlayTexas. “It was a historic vote and showed we have more support than ever, and we look forward to another chance to pass it next go-around. Third time’s a charm, right?”
For the third attempt to succeed, sports betting supporters must convince Patrick to get out of the way in the Senate. For that to happen, Republican state senators will have to back sports betting and choose to let Texas residents decide whether to make it legal.
“We know that Texans want the freedom and liberty that our great state is known for to participate in sports betting legally and safely,” Perry said.
Texas stands to become the largest gambling market in the country. A PlayTexas analysis shows that legal sports betting in the state could generate up to $30 billion in wagers.
- Content Manager Jason Schaumburg contributed to this report.
Tyler is the Managing Editor of PlayTexas.com, covering sports, sports law, and gambling for the Lone Star State. He also contributes on similar topics for PlayCA, PlayFlorida, PlayOhio, and PlayMA. Tyler’s current focus is Texas’ pathway to gaming legalization.
