For decades now, sports betting and casino gaming advocates have been creating different strategies for the state to allow the legalization of these types of activities in Texas. However, these efforts have been truncated due to the government’s firm position to prevent sports betting from being legal in the state. In fact, supporters of the idea have to wait until 2025 for another opportunity to present their proposal again. Despite the difficulties in regulations, individuals can still place their bets at sites licenced offshore, so let’s get in to understanding the somewhat complex regulations in Texas.
Current gambling regulations in Texas
Gambling regulations in Texas, included in Article 47 of the state code, establish that sports betting and casinos are considered illegal, excluding horse and dog racing. Strangely this decision still stands today, despite the fact that in 2017 each state government was given control to decide the legality of gambling in their jurisdiction. Even so, an exception applies to Texas’s two casinos on Indian reservations, but there’s a campaign to stop the activities.
So, as things stand right now, casinos are not legal in Texas and the chances of that changing in the near future seem to be slim. But this doesn’t mean there’s no casino gaming for those who are in Texas. Many real money online casinos that are operated overseas are open to Texas residents, giving them somewhere to go when they want to play casino games (source: sportslens.com/texas/online-casinos/). Of course, Texas residents can also take advantage of the opportunity to travel out of the state to visit online and in-person establishments in order to gamble at them.
How much is Texas losing by keeping this type of ban in the state?
While the casino ban in Texas has those who support it, from an economic standpoint, it’s harmful to the state. The casino sector is considered one of the most prolific in terms of taxes, which could be used to improve other areas within the state.
According to industry research and a scholarly estimate, Texans wager billions of dollars illegally and in other states. Several initiatives that might legalize mobile sports betting and resort-style casinos are being considered by state lawmakers.
Clyde Barrow, a gaming policy specialist and professor at the University of Texas-Rio Grande Valley, said Texans spend about $5 billion annually in neighboring states, namely Las Vegas and other casinos in Louisiana and Oklahoma.
According to information conducted by the gaming industry research company, Eilers & Krejcik Gaming, Texans wager more than $8 billion annually. Based on a suggested 10% tax rate, the analysis concluded that the state is missing out on close to $800 million in tax income.
Casinos vs. sports betting in Texas
While it appears that no proposal can change the laws established by the state for this type of activity, it can be said that the current status of these laws offers an advantage to one of the parties.
Texas casino games
Despite the limitations that casinos have in the state of Texas, two of them have been allowed to operate on Tribal lands for years. They’re regulated by the National Indian Gaming Commission, meaning players have a couple of places to enjoy gambling in Texas.
In addition, Texas law supports the free exercise of a certain number of games as long as they comply with the rules established by the state. This means that games related to horse racing, charitable gambling, and activities subject entirely to chance (e.g., lottery), are considered legal in the state and can easily be included in a casino.
Texas sports betting
In the case of sports betting, the panorama is completely different since they don’t have the advantage of established casinos.
The laws in the state of Texas don’t give sports betting a chance in any way. The legislation declares sports betting as a completely illegal activity and anyone who places a bet runs the risk of fines or penalties. The only exception that could be taken into account are horse and dog races, where the dealer must be state licensed before the race.
Although every proposal and debate is seen as a breakthrough on this issue, the future of sports betting doesn’t look as promising as gamblers had hoped. The government shows no signs of wanting to provide flexibility on sports betting and it seems that it will stick to its guns with bans.
As a result, many bettors and businesses seeking to include the state as part of sports betting will have to wait until 2025 to discuss the issue again.
So, who has the upper hand in this matter?
Although the environment for the expansion and enjoyment of casino games or sports betting isn’t fertile right now, there’s no doubt that the current scenario must be considered. Currently, sports betting is at a big disadvantage as it has received a negative response in the latest proposal.
On the other hand, two Native casinos are still able to offer their users a limited range of options within their properties. It’s important to remember that although casinos are prohibited in the state, they are located on Native American reservations.
That’s why at present, the regulations have allowed casinos to have a big advantage over sports betting, although this may soon change.
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