Texas Gambling Potential: Can It Rival Nevada and New Jersey?

This article is for informational purposes only and does not constitute legal advice or endorse illegal gambling activities. Gambling laws vary and violations may result in criminal penalties. Consult a licensed attorney for legal guidance.

In the U.S. gambling community, Texas’s gambling industry is seen as one of the biggest untapped markets. With over 30 million potential customers, if all forms of gambling were allowed in Texas, it could rival some of the biggest gambling economies in the country.

Currently, the only forms of gambling allowed in Texas include parimutuel wagering, charitable bingo, and a statewide lottery. The state also has three tribal casinos. Interestingly, online gaming is still a gray area in Texas, as they are not yet legalized. However, many residents still play these games. As industry publication Card Player explains, some residents access offshore gambling sites, despite the legal uncertainties surrounding such platforms.

Gaming investors and enthusiasts in Texas believe that if the state legalizes online gaming and utilizes it to its full potential, it could rival states like New Jersey and Nevada. Looking at the data from the American Gaming Association, Nevada's gaming industry contributes $59.6 billion, $8 billion in taxes, and over 330,000 jobs to the state’s economy. On the other hand, the industry in New Jersey contributes $11.9 billion to its economy.

Comparing that to Texas's gambling industry, which has just three casinos and contributed over $4.83 billion to the economy, there's an argument that if a fraction of Texans are legally allowed to play online casinos or wager on sports, the state could gain significantly in taxes.

According to a report by Eilers and Krejcik titled Legal Online Sports Betting in Texas: Revenue Forecast and Economic Impact Analysis, it is projected that if the sports betting market in Texas becomes legal and mature, it could bring in annual tax returns of $363 million. The report also estimates that over $2.6 billion could be contributed annually to the economy.

It also explains that non-gaming taxes for legalized sports betting could increase by $24.3 million every year. These taxes can be used to fund public services such as healthcare and education, and help to reduce property taxes. In terms of job creation, the report outlines that over 8,000 jobs could be created across different areas of the sports betting sector, and a total of $580 million could be paid as wages every year.

This report has also given legislators a new base to back their push for legalized online gambling and sports betting. For the past four years, lawmakers in the Texas Senate have been pushing to reform the state's gambling laws, but they have made little progress.

Earlier this year, the Las Vegas Sands empire organized a list of lobbyists to push Texas’ Republican-controlled Senate into allowing casino operators to run destination resorts in Texas. The Texas Sports Betting Alliance also joined the fight as they lobbied a proposal through the Texas House to make online sports betting legal.

While both bills pushed through the Senate, aiming to relax some of Texas's gambling restrictions that have been in place for over a century, they were eventually shut down by Senate President Dan Patrick. Sen. Patrick explained that the bill doesn't have enough support from the House’s GOP majority.

With him still in office till 2027 and taking a firm approach to gambling, supporters of legalized gambling will have to be patient and continue to score legislative wins that will prepare a solid foundation for the House to fully legalize gambling when a more sympathetic person leads the Senate.

This content was produced in partnership with General Studios. If you or anyone you know has a gambling problem, call 1-800-GAMBLER.

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