The more one looks at things, it’s not far-fetched to believe that legal sports betting in Texas is not an automatic even going into 2027. Lawmakers and other politicians have been working hard on this, but because the Texas Legislature only meets every two years, there is little or no rush. Lt. Gov. Dan Patrick remains “not there yet” while Governor Greg Abbott has shown support for such measures.
The sustained battle is not what bettors have been hoping for. By now, it was assumed that online betting sites were hopeful to start by now. Unfortunately, that has been ruled out. If a bill makes it to the governor in 2027, it will be signed. However, casinos and sportsbooks would have to be implemented. In a state the size of Texas, that expects to take some time.
Texas does have other options – namely daily fantasy sports (DFS) and social casinos. Also, there is the state lottery. Furthermore, two physical casinos are run by tribes while a third seems in perpetual formation (it is not a reality). Texas has tried to fight these casinos but has not been successful yet. Poker games are legal in the form of standalone poker clubs.
It is not like you cannot bet on anything sports. There is horse racing. Simulcasts make it possible to bet year-round on the horses along with live action when conditions allow for it. The road may not be paved with gold for all sports bettors but at least there is something.
Texas bettors can run to neighboring states. Yes, there are three states adjacent to Texas that offer sports betting. Arkansas remains legal statewide. New Mexico has several tribal locations. Finally, Louisville has all the online options along with several physical sportsbooks. For a state of around 30 million people, there is a market. Naturally, to find in-person sportsbooks, like Las Vegas, a Texan has to drive a little.
Do not forget the OR here. Bettors can bet on props via DraftKings Pick 6 or use a social sportsbook like Fliff. Add PrizePicks, Betr, and Underdog among the bigger names and Texans do have options. While it is not conventional legal sports betting, again this is something. Then, there is also those prediction markets. If one believes the media, it is estimated that 15% of the country uses prediction markets to wager.
Prediction markets open the door for not just sports, Obviously, there are entities like politics and entertainment. Kalshi and Polymarket have proven to be quite profitable in these realms. Yes, the lion’s share of money is believed to be in “sports betting”. However, since Texas has not outright banned prediction markets, bettors can enjoy the limbo while it lasts.
Like we mentioned above, it is not like there are no choices. It is just not legal to formally bet in a sportsbook. Look at how long it took for New York to legalize such betting. Even then, there is that huge tax. That has not stopped development there. However, there is a bit of a different dilemma when it comes to Texas.
If anyone needs a reason why the time is not yet, it may be this. Bluntly, people are not astonished that the second biggest state in the nation has a very large budget. Again, this begs the question of who pays the bills? and even if various deposit methods became legal, that may appear. For perspective, in 2024, it was estimated that $7.1 billion of revenue could flow into the Texas coffers if sports betting became fully legal.
Here lies the problem. The state of Texas has a budget of around $335 to $340 billion as of 2026 adjusted dollars. According to the budget logs, the funds totaled $338 billion. Either way, this is a large amount of money. Even if revenue was adjusted to $10 billion for sports gambling, that would fund Texas for a grand total of only 11 days. Would that help? Yes. Is it a drop in the bucket? Also yes.
Unfortunately, the state, like California, kind of kicks the can down the road. With again the legislature only convening every two years, the earliest we see any action is 2027. While many in Texas support legal sports betting, it is not the budget panacea it used to be. Hence, urgency is not quite what it seems.
Yes, what about the specter of the Houston Rockets. The owner of the Mavericks is Tilman Fertitta. He is a hospitality mogul who runs the Golden Nugget Hotel and Casinos. With “houses of gambling” such as Las Vegas and Atlantic City, it is no secret that Fertitta has ambitions in Texas for legal sports gambling and casinos naturally.
The problem is the inevitable conflict if sports gambling ever gets legalized. Would Fertitta push for a Golden Nugget in say, Houston? What would regulators in the state of Texas do? Are we getting too far ahead of ourselves? Either way, it is an interesting push and pull.
Legal sports betting in Texas was always going to be complicated. Expect a lot of quiet until it is not. That is just the way it was destined to be. One thing remains clear. The clock is ticking.
With major events ticking off as the months go by, the 2028 Summer Olympics has the potential to be the first thing bet on in Texas or maybe the Super Bowl. Either way, power players like Fertitta will play a role along with the rest of the sports teams in Texas. Stay tuned!
