The group supporting the push for mobile sports betting sites in the Lone Star State says they are confident they have the support needed to get their preferred legalization legislation into the end zone.
“We believe the voting threshold is there to get two-thirds support in both chambers and to get it to the November 2023 ballot,” Texas Sports Betting Alliance spokesperson Cara Gustafson said in an email.
Legislation was filed earlier this month in Austin that, if passed, would allow online sports betting sites in Texas pending the outcome of a referendum in November.
The legislation has the support of the Texas Sports Betting Alliance, a coalition of the state’s professional sports franchises, leagues, and racetracks, as well as betting platform operators such as DraftKings and FanDuel.
Another go at it
Among other things, the bills filed in the legislature would put the Texas Lottery Commission in charge of licensing and regulating online sportsbooks in the state. Teams, leagues, and racetracks would be eligible for licenses and could partner with established sportsbook operators to take bets.
Operators would be subject to a 10% tax on their adjusted gross wagering revenue, which would not include promotional play and would be in addition to a $500,000 licensing fee. Bettors, meanwhile, would have to be 21 or older to wager. The legislation would take effect in 2024, but only if a constitutional amendment allowing the legislature to legalize event wagering is approved by voters.
There is no guarantee of success, as previous attempts to launch sports betting in the Lone Star State have come up short. Still, there is hope for progress this session, and one of the refrains from supporters is that Texas should institute legal sports betting because an illegal version is already happening in the state.
“I introduced SB 715 and SJR 39 because Texas needs to bring security and safety into the world of mobile sports betting,” Sen. Lois Kolkhorst, a sponsor of the legislation, said in a press release. “It makes sense to rein in all of the illegal offshore betting and keep sports wagering funds here in Texas.”
No sweat
There had not been much movement by the online sports betting bills and resolutions since Tuesday morning, unlike a separate piece of legislation that aims to authorize retail sports betting and casino resorts in the state, which was referred to a Senate committee. Gustafson, however, said the alliance is hopeful the Senate bill will be referred to a committee this week.
“Bills cannot be heard on the House/Senate floor until Day 60 of the legislative session: March 10th,” Gustafson said. “Right now bills are in the process of being referred to their respective Committees. Once the bills get referred, bills can be heard in Committee and continue moving through the legislative process.”
The last scheduled day of the current legislative session in Austin is May 29. June 18 is the last day of 2023 that Texas Gov. Greg Abbott can sign or veto bills passed during the regular session. If nothing is approved this year, lawmakers (barring a sports betting-specific special session) would have to wait until 2025 to try again.
Again, though, voters will ultimately have their say about sports betting in Texas — if it gets that far. While the track record of sports betting at the ballot box is good, last November’s referendum in California was a stinging loss for online sportsbook operators, who saw their proposition resoundingly rejected.
But, when asked if the failure of the online sports betting ballot initiative in California concerned the Texas Sports Betting Alliance, Gustafson’s response was short: “No.”
