It’s unlikely that Texas will legalize sports betting next year since its biennial legislature won’t meet until 2027. Texas sports bettors, however, might have another option, given the recent availability of prediction markets.
Texas Sports Betting: Where Things Stand
Legalization has not arrived in the Lone Star State yet, but there are alternative online sports betting for Texans via daily fantasy sports (DFS apps) and social sportsbooks, such as:
- Thrillzz
- Novig
- Kalshi
Texas sports betting has been a hold out in the push for legalization. And it’s not opposed to just sports betting; Texas has traditionally opposed legalizing gambling of any kind.
That looked like it could change at the start of 2025, when Texas Governor Greg Abbott said in a Houston Chronicle interview, "I don’t have a problem with online sports betting. The reality is that I’d be shocked if there were not some Texans that do it already." But that may have been a head fake as Abbott did little to support gambling-related initiatives in 2025.
Meanwhile, Texas Lt. Governor Dan Patrick, a long-time legalized gambling foe, decided to seek another four-year term, dashing any hope of a more accommodating administration.
This is good news for Oklahoma, which has been a primary beneficiary of Texas’ gambling ban. Even without offering legalized sports betting, Oklahoma’s casinos generate roughly $3 billion a year in revenue, with much of that coming from the casinos located with a few miles of the Texas state line.
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What's next?
It’s unlikely that Texas will see any change to its gambling laws in the foreseeable future. For one thing, legalizing gambling would require a change to the Texas constitution. And the legislation isn’t scheduled to meet until 2027. But Texans may not have to wait that long. In fact, they may not have to wait at all.
Federally regulated prediction markets have started to offer sporting contracts. While the primary provider Kalshi insists that the contracts do no constitute sports betting, participants can wager on the outcome of nearly any sporting event, place prop bets, construct parlays, etc.
For the state of Texas, this does not seem like an optimum way to “allow” sports betting. It is not regulated by the state, it does not provide revenue to the state, and it – so far – has few safeguards or standards protecting Texans from some of sports betting’s collateral damage.
Some states have legally challenged prediction markets from operating in their jurisdictions. So far, Texas has been mute on the subject.
Notes and quotes
Texas Governor Greg Abbott told CBS this month that when it comes to resort-style casinos or sports betting, “I’m not there yet. I’m simply not there yet. Because we’ve seen increasingly problems that go along with gaming. Whether it be addiction or whether it be things that are happening in sporting events and athletes who are on the take. And so there have been more red flags raised.”
Chickasaw Nation Gaming Commission Vice Chair, Crystal Houston, said Oklahoma tribes benefit from Texas’ gambling bans. “We try to keep gaming out of Texas. We keep digital out of Texas, any kind of gaming out of Texas, because that’s what drives our revenue.”
In a Fort Worth Star-Telegram column entitled “Sports Betting is Legal in Texas Now. Just Don’t Call It Sports Betting” sports writer, Jim Barnes, wrote about prediction markets in Texas. Barnes wrote, “I registered for a Kalshi account, connected it to my bank and successfully transferred $300 to my new investment fund. The whole process took 11 minutes.”
Year in review
January: Jim “Mattress Mack” McIngvale, the well-known Texas furniture magnate and sports bettor, made news when he lost $2 million betting on the Texas Longhorns. To add salt to the wound, he couldn’t even place his bets in Texas, where sports betting is still illegal.
February: Gambling-related bills were filed in the Texas legislature. HJR 134 sought to amend the Texas constitution to allow sports betting. Meanwhile, HJR 137 looked to legalize both casinos and sports betting.
March: Both HJR 134 and HJR 137 were referred to the House State Affairs Committee. Neither bill came up for vote before the end of the legislative session.
November: The Texas Sands PAC had amassed more than $9 million to help gambling-friendly Texas political candidates. The lobbying effort, spearheaded Las Vegas Sands majority shareholder Miriam Adelson, supports candidates in major cities that would be likely casino markets should Texas every legalize resort-style casinos.
