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The great state of Texas has finally put a bill forward to legalize sports betting by the end of 2021. Per The Athletic’s Daniel Wallach – Texas Republican Dan Huberty has filed HB 2070 & HJR 97 that would put Texas sports betting to a November 2021 vote. Texas sports betting had appeared unlikely in the past so this news is rather surprising.

Texas Pro-Teams Could Operate Sportsbooks

Adding to the surprises of this news is that sports teams would be license holders – rather than casinos. This would be an interesting development to see how sports leagues would work with this type of format. In most states, online sports betting apps often need to partner with local casinos or operators in order to gain access to the market. For example, in Michigan, FanDuel operates in partnership with MotorCity Casino in Detroit.

Furthermore, this could have rippling effects on the teams’ value as well as how sports betting is legalized and licensed. In order for companies like Penn National, DraftKings, and FanDuel to gain access – they must work with the teams first. According to Roundhill Investments, the bill is backed by the Sports Betting Alliance. The Alliance includes teams such as the Cowboys, Mavericks, Rockets, Rangers, and more.

1. There are currently no laws within the Texas legislation that outright bans online sports betting. To date, no one has been arrested in Texas for betting on sports at international betting sites.
2. Texas didn’t officially legalize any gambling activities until 1933, when they approved pari-mutuel betting. Just four years later, the state voted to shut down pari-mutuel wagering. The see sawing continued in.
3. Sports betting is not legal in the state of Texas unless you are using an offshore site. But currently, Texas has not legalized domestic sports betting, meaning you can’t bet on a site like DraftKings or BetMGM.

Currently, only social and charitable gambling is legal in Texas. In February 2019, HB1275 was filed by State Rep. Eddie Lucio the 3rd to authorize sports betting operations including mobile and online. 3 hours ago  Bills to Make Gambling Legal Hit the Texas Legislature. Posted on March 9, 2021. DALLAS (WBAP/KLIF) –Could casino gambling and sports betting be in the Lone Star State’s future?

Cowboys Owner Jerry Jones has long been an advocate for legalized sports betting. Jerry Jones was one of the first investors in DraftKings. This relationship could make it easy for DraftKings Sportsbook to work a deal with America’s Football Team.

Texas Sports Betting App

What Texas Teams Would Get A Sports Betting License?

Sports betting licensees are very expensive in most states. For instance, in New Jersey, a sports wagering license costs a $100,000 renewal fee every five years. This is not including the application fees, initial fee to get the license, and other permits which total around $1 million.

Once all of these fees are paid, sports teams can then partner with sportsbooks for a fee. At this point, sports teams and sportsbooks will work together to bring the product to the state. It is unclear what kind of role these sports teams would play in the day-to-day activities of operating a sportsbook app in Texas.

Below you will see a list of the major sports teams that could vie for a Texas sports betting license.

• Dallas Cowboys
• Houston Rockets
• Dallas Mavericks
• Houston Texans
• Texas Rangers
• San Antonio Spurs
• Houston Astros
• FC Dallas
• Texas Longhorns???

College Football Betting In Texas

It is unclear where college football would fit into such an arrangement. It is unquestionable that the Texas Longhorns are one of the most popular entities in the entire state. College sports have been a difficult question across the country in the way of sports betting. Most states place some sort of restrictions on college betting. Some states, including New Jersey and Virginia, place significant restrictions on college betting, particularly on betting on in-state teams.

It is unclear at this point what sort of restrictions Texas could place on college betting or whether the Longhorns could operate their own sportsbook. This is unheard of elsewhere in the country, but sometimes in Texas, anything goes.

Expect more clarity to come on the impending bill in the state of Texas. Any Texas sports betting launch would be huge for gambling companies, even if licenses are owned by local Texas teams.

Online sports betting legislation might be on the table in Texas this year and professional sports teams could be the gatekeepers to the sector.

According to multiple sources, LSR understands the Texas Governor’s Office has reached out to lobbyists and regulators in states like New Jersey for advice on the best way to legalize sports betting.

“Something is going to happen in Texas,” said Bill Pascrell III, a lobbyist with the Princeton Public Affairs Group. “It’s complicated because there’s no gaming culture and nothing definitive yet. But the governor is interested and the legislature is interested.”

Sources indicate the TX sports betting effort is backed by influential team owners including Jerry Jones of the DallasCowboys, Mark Cuban of the Dallas Mavericks, and TilmanFertitta of the Houston Rockets.

How would Texas sports betting plan work?

One plan being floated would see 14 to 20 licenses available for the state’s professional sports teams and handful of horse racing tracks in Texas. In essence, the teams would be the equivalent of casinos in a gaming state like New Jersey, in that they can sell access to bookmaking partners.

A draft bill is currently being written and will need a sponsor before making it to the legislative floor.

That could happen over the next week as the Texas legislative session begins.

Long road ahead for TX sports betting

Texas historically profiles as one of the more unlikely states to legalize sports betting, given its conservative roots. Any changes to the state’s gambling laws also require a constitutional amendment.

However, the state, like many others, faces a budget deficit because of the coronavirus pandemic. And the support of influential figures like Jones, Fertitta, and Cuban could be a decisive factor.

Legal Horse Race Betting In Texas

All three team owners have some links with gambling. Fertitta owns Golden Nugget, while Jones had a stake in DraftKings as of May this year.

Meanwhile, Cuban is an investor in esports betting platform Unikrn. The Mavericks owner also famously said the repeal of PASPA doubled the value of sports franchises overnight.

The proposals call for online betting but could also see betting kiosks in Texas stadiums.

Opposition on the horizon

As opportunities go, Texas is a big one. The state is the second largest in the US by population and 13th richest, by GDP per capita. In other words it is as wealthy as Illinois, but more than twice the size.

Illinois is already the fourth largest US betting market by handle, despite only going live last year.

Is Horse Betting Legal In Texas

But Texas being Texas, there is no shortage of potential opposition to the plans, including colleges and Oklahoma tribes who currently attract gamblers from across the border.

Matters are further complicated by the potential legalization of casino gambling in the state. Casino mogul Sheldon Adelson spent $4.5 million before his death to help Republicans keep control of the Texas House in 2020.

His company Las Vegas Sands is reportedly eyeing resort casinos in Texas and could also try to be cut into sports betting.

As Pascrell points out, there are plenty of roadblocks before Texas sports betting is a reality. The fact that there’s a chance shows how far the industry has come, though.

Would sports leagues be on board?

The idea of a sports team as license holders, perhaps unthinkable two years ago, is not so far-fetched.

Legal Betting Sites In Texas

The recent Virginia sports betting law, for example, offers a license for the Washington Football Team or another professional franchise, should it relocate to the state.

Is Online Horse Betting Legal In Texas

Leagues have lobbied in the past for legally enforceable ways to make money from sports betting, usually via integrity fees. That suggests they might allow teams to be licensees.