Published on: November 21, 2024, at 03:05h.
Last updated on: November 21, 2024, at 03:05h.
Texas is currently among the 11 states that do not allow any form of regulated sports betting. However, if this changes, the second-largest state in the U.S. could experience significant economic advantages.
In a recent report titled “Legal Online Sports Betting In Texas: Revenue Forecast And Economic Impact Analysis,” Eilers & Krejcik Gaming (EKG) projected that the legalization of mobile sports betting in the state could lead to the creation of 8,000 jobs and $360 million in direct tax revenue for the state.
The research firm also mentioned that by legalizing sports betting, Texas could generate $24.3 million annually in additional non-gaming taxes and experience an overall economic benefit of $2.6 billion.
Former Gov. Rick Perry (R-TX), now a spokesperson for the Sports Betting Alliance (SBA), previously stated that a regulated sports betting market could bring in $250 million for the state, based on an estimated black market handle of $8.7 billion. Despite debate over the accuracy of this estimate, it is clear that Texans are already participating in sports betting through various means, and the state is missing out on potential revenue.
Sports Betting Revenue Argument Could Influence Texas Decision
Gaming companies and politicians advocating for sports betting legalization often emphasize the revenue potential, especially in a state like Texas that does not have an income tax. This highlights the importance of exploring new revenue streams.
Data shows that sports betting taxes have significantly boosted states’ revenue. A recent LendingTree study revealed that states with legalized sports betting generated $2.5 billion in revenue last year, marking a 34.7% year-over-year increase. This is noteworthy, considering that populous states like California and Texas currently do not allow sports betting.
In Texas, the challenge lies in convincing policymakers of the need for additional revenue and the potential benefits of legalizing sports betting as a controversial but lucrative source. Despite reports of a surplus in state funds, there are available funds that could be utilized for various purposes.
Future of Sports Betting in Texas
Despite the economic advantages highlighted by EKG and public support for sports wagering, the issue remains contentious in Texas. Lt. Governor Dan Patrick (R-TX), who plays a key role in the State Senate, is currently opposed to the idea of expanding into casinos and sports betting.
There is speculation that Patrick may join the Trump Administration, but even if this occurs, it is widely believed that his successor would also maintain opposition to gaming expansion.
Therefore, the likelihood of a sports betting ballot measure for Texas voters in November 2025 seems improbable at this time. Some industry experts suggest that a more realistic timeline would involve a vote in 2027 with sports betting operations commencing in the state the following year.