Legalizing Texas sports betting would not only create hundreds of millions of dollars in tax revenue, according to a recently published report, but it would also create up to 8,000 new jobs across the Lone Star State.
Those are among the findings in a study released last week by Eilers & Krejcik Gaming. The independent report estimated residents bet more than $7 billion each year on games and events.
The nation’s second-largest state is one of 11 that still has not legalized sports betting nearly seven years after the U.S. Supreme Court ruled a federal law barring most states from doing so was unconstitutional.
“Texas is missing out on a significant economic opportunity by not legalizing online sports betting,” Texas Sports Betting Alliance spokesperson Lauren Clay said in a statement about the report, adding the tax dollars generated could “provide essential funding for public services.”
EKG’s report projected a “mature” market would generate $363 million in tax revenue from licensed operators. Additionally, sports betting could generate another $24.3 million in additional taxes due to the economic activity created by legalizing sports betting.
Consultants Still Gloomy About Texas Sports Betting Measure Next Year
Lawmakers in Texas will begin their next legislative session in about six weeks. During the last session two years ago, the state House voted to allow residents to vote on the issue. However, the Senate declined to consider the issue before the biennial session ended in late May.
Despite the projections, EKG said in a separate forecast published Friday that the firm’s consultants “lean negative toward any movement this session.”
The lack of optimism stems from Republicans making gains in the Senate, where the GOP now holds 20 of the 31 seats in the body. While a law setting rules and regulations for sports betting would only need a simple majority to pass, any effort to put a constitutional amendment before voters needs a two-thirds majority, or 21 yes votes out of the 31 members.
Texas Lt. Gov. Dan Patrick leads the state Senate and has long been a vocal opponent of gambling measures. He also has demonstrated an unwillingness to work across the aisle, a philosophy that further complicates matters in that chamber.
In June, Texas Republican leaders published the state party’s annual platform. Not only did they decline to make it one of the party’s eight legislative priorities for the upcoming session, but they also rejected any effort to expand gambling and called for any budget that included gambling legalization to be vetoed.
“We call on all Republican legislators to decline campaign contributions from gambling PACs and lobbyists and oppose any effort from the House leadership or members of the House Calendars Committee to pressure members to vote for expanded gambling,” the platform states.
More: Check out expert reviews on what we can expect from Texas sports betting apps.
Texas On Firm Financial Footing
From a fiscal standpoint, Texas does not appear to need additional tax funds for any programs or services. That said, the revenue the state would receive from sports betting would allow lawmakers to pass additional relief to taxpayers.
Texas does not have a state income or property tax. Its budget relies on the state sales tax for the bulk of the revenue.
Two years ago, Texas lawmakers had a record budget surplus of $32.7 million to work with at the start of their session. Recent estimates by the state comptroller have pegged the surplus for 2025 to be around $21 billion.
However, tax revenue from sports betting – and potentially brick-and-mortar casino gambling – could help the state funnel more money to public school districts that rely on property taxes as a revenue stream. That, in turn, would allow the districts to lower their rates and pass on the savings to taxpayers.
BetTexas will continue to monitor efforts to legalize gambling in Texas and provide updates and analysis in the months ahead. Rest assured, once sports betting is legal in the Lone Star State, we will have the best Texas sportsbook promos available.
Author
Steve is an accomplished, award-winning reporter with more than 20 years of experience covering gaming, sports, politics and business. He has written for the Associated Press, Reuters, The Louisville Courier Journal, The Center Square and numerous other publications. Based in Louisville, Ky., Steve has covered the expansion of sports betting in the U.S. and other gaming matters.
