The Loan Star State is famous for many things including country music, barbeque food, and the Alamo, but one thing it is missing is a thriving gambling industry.
Some forms of betting are permitted in Texas, but at present online casinos and sports betting are not legal. This can come as a surprise to many given that Texas is home to two MLB teams, two NFL teams, and three NBA teams.
Betting expert Joseph Yarnold explains that while there are no legally authorized online betting operators within Texas, offshore betting options remain open to citizens. For more information on this, you can read a detailed guide here.
This article will explore the current landscape of betting in Texas and how it has developed over the years before looking at what the future potentially holds.
The History of Gambling in Texas
The state of Texas has a long and fascinating history, and gambling has been there to play a part through it all. Gambling houses began to spring up across the state following the Civil War before legislation was passed in 1903 to ban gambling.
It wasn’t until the early 1930s that Texas legalized parimutuel horse race betting where winnings are determined by the amount staked and after taxes and fees are removed from it.
Indian gaming casinos began to expand operations during the ’80s and ’90s and a state lottery was introduced in 1992.
Legal Forms of Gambling in Texas
While the current betting landscape of Texas is strictly regulated and relatively limited, there are still options available to Texan bettors.
Lottery
The Texas State Lottery was launched in 1992 and includes a variety of draw games including Mega Millions, Powerball, Pick 3, Cash 5, Texas Two Step, and Lotto Texas.
The Texas Lottery also has a variety of scratch cards that are available to buy from licensed sellers. These include Emerald 7s, Crossword, Luxe, Money Money Money, and Cash Blast.
Charitable Gaming
Texas allows charitable gaming events including bingo and raffle for non-profit organizations and community groups.
Charitable gaming events must be licensed by the Texas Lottery Commission’s Charitable Bingo Operations Division. Maximum prize values are set for charitable bingo games at $750.
A constitutional amendment was passed in 1989 that allowed qualified organizations to hold raffles in Texas. Rules state that organizations can hold a maximum of two events per year with a maximum prize value of $50,000. If the prize of the raffle is a house, the value can be up to $250,000.
Parimutuel Betting
The Texas Racing Commission oversees parimutuel wagering at horse and greyhound tracks. While it was initially legalized in 1933 as a way to increase revenue after the Great Depression, it was outlawed again in 1937. It wasn’t until 1987 that it was finally legalized again.
Indian Gaming
Texas is home to three federally recognized tribes, the Kickapoo Tribe, the Tigua Tribe, and the Alabama-Coushatta Tribe. Each of these operates a casino following victorious court battles by the Indian Gaming Regulatory Act in the ’80s.
More legal wranglings have followed over the year, and most recently in 2022, the Supreme Court ruled in favor of tribes to allow them to continue offering bingo games.
Eight Liner Game Rooms
Eight-liners are slot machines that are permitted to run on the understanding that prizes offered will have a value of under $5. Attempts to crack down on illegal cash payouts from these operations have had limited success.
Casino Cruises
Offshore betting operators provide Texans with a way of accessing online casinos and sports betting markets. Similarly, casino cruises offer a similar service for an in-person betting experience.
These cruises are organized to travel into international waters to escape gambling laws.
The Future of Gambling in Texas
Many attempts have been made to legalize sports betting and online betting in Texas, but none have been successful yet. The backing of major sports franchise owners including the Dallal Mavericks’ Mark Cuban and the Houston Rockets Tilman Fertitta have put their weight behind campaigns and could see success in the future.
Pro-betting campaigners are pointing to the success of other states that have passed legislation and reaped considerable revenue through taxation and licenses.