Texas could see hundreds of millions of dollars in direct tax revenues and billions in economic impact if it legalizes sports betting, according to a new study.
Legalized online Texas sports betting would generate more than $360 million in annual tax revenues, according to analysis from Eilers & Krejcik. Legal sports betting would also bring in $24.3 million in additional non-gaming taxes.
This would further translate to 8,000 new jobs for the state. Overall, the study finds a $2.6 billion economic impact from legal sports betting.
Difficult political environment for Texas gambling
The study results come as sports betting proponents, including most major Texas professional sports organizations, face a difficult political challenge in the upcoming legislative session.
Lt. Gov. Dan Patrick, who through his capacity controls day-to-day dealings of the state Senate, has said he will not discuss sports betting legislation unless he has majority support from his fellow Republicans. Few Senate Republicans have shown gambling legislation support, including incoming Sen. Adam Hinojosa.
Gaming industry studies show a majority of Texans would support the right to approve Texas sports betting or casino gambling on a ballot measure. Prior Eilers & Krejcik estimate Texans gamble billions each year in other states or through unlicensed operators.
"Eilers & Krejcik, an independent research firm, conducted a new study showing sports betting would pay off for the state of Texas"
— Alfonso Straffon ?????? (@astraffon) November 20, 2024
Legalizing sports betting in Texas would pay huge dividends, study says https://t.co/RaHNJgZswN #FoxBusiness
The state House passed sports betting legislation in 2023, the state’s most recent legislative session, but the bill was not discussed in the Senate. Because of the block, supporters in the House have indicated they will not file further gaming bills unless opposition in the upper chamber thaws.
That seems unlikely to happen in 2025.
Patrick, and many other GOP Senators, have emphasized conservative, Christian values in their elections. They remain opposed to any gambling expansion, largely over concerns about crime and other societal ills.
Patrick has been one of incoming President Donald Trump’s most prominent supporters and was rumored for a potential position in the incoming administration. He has not been among the first wave of most prominent nominees for cabinet positions or ambassadorships and appears set to return to Austin in 2025.
Stakeholders still fighting
This hasn’t deterred many of the industry’s leading stakeholders from trying to sway gaming opponents in the statehouse.
DraftKings will join Las Vegas Sands and other leading U.S. gaming operators in trying to push lawmakers to pass sports betting and/or casino gambling legislation in 2025 so voters could decide on these proposals in the 2026 elections. The potential for Texas, the nation’s second-most populated state and home to some of its largest metro areas, is too much for gaming companies to pass up – even if approval is a long shot.
DraftKings, FanDuel, BetMGM and other major sportsbooks have joined the pro teams to push for sports betting approval. Texas Rangers chief operating officer Neil Leibman reaffirmed the teams’ commitment to sports betting legalization in a Dallas Morning News piece last week.
“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,” he wrote.
Miriam Adelson, one of the 2024 Trump campaign’s biggest financial benefactors, purchased the Dallas Mavericks, in part over plans to open a destination resort casino along with a new stadium in a new entertainment complex. Her impact remains to be determined in both Washington and Austin, but it gives gaming supporters a powerful backer.
Bottom Line
Gambling stakeholders remain publicly bullish that they will get legislation through the legislature. The lawmakers themselves are adamant no bill will see the light of day. It’s too early to tell which way things will shift, but momentum – and final votes – rest with gambling opponents in the legislature, not the supporters outside of it.
