The topic of sports betting has been a contentious one across most of the country, and especially in Texas, in recent years. But in a short 6 years since sports betting was legalized in 2018, the industry is already reaching record high profits. In 2024, the industry pulled in a record $13.7 billion in revenue. States that have legalized sports betting have also seen huge profits.
New York, who is similar in population size to Texas, has pulled in hundreds of millions in tax revenue to put toward various projects and legislation efforts. Meanwhile, Texas in its true conservative ideology has been reluctant to legalize sports betting, with worries over fraud or corruption. But the tide is turning. Governor Greg Abbott said recently he supports Texas voting on legalizing the idea.
Karina Kling of the Texas Sports Betting Alliance says the benefits here in Texas could be massive.
"Annually it would bring an estimated about $360 million in tax revenue, which could go toward helping things like property tax relief, education, and critical services," she says.
Legal sportsbooks took in around $150 billion worth of bets in 2024, a 22 percent increase from 2023. Those sportsbooks won at a 9.3 percent rate nationally, which was also up from 2023. They also reported their most lucrative quarter ever, pulling in $3.66 billion in Q4.
The money is definitely there, and the desire is definitely there. In the past Texans have been apprehensive about the idea. But now there is a sort of fear of missing out, and it is time for Texas to follow along for the ride.
"We have seen polls showing how the public wants to vote on this...they want a legal regulatory framework in place where they are a protected consumer, and revenue comes back to the state," Kling says.
The Texas sports betting alliance is trying their best to legalize sports betting, but it will take some work. The state legislature is, for lack of a better term, slow in how they do things. Plus, there is still the staunchly conservative bunch in the chambers that are vehemently opposed to the idea, including Lieutenant Governor Dan Patrick.
But there will be safeguards in the bill that should help quell any fears.
"Any sports betting measure must contain provisions that set aside money to establish education campaigns, and limit compulsive gambling," says Kling.
She adds that millions of Texans are using unauthorized, offshore betting services, which are dangerous and can lead to money being stolen. She says legalizing gambling here would not only bring revenue for Texas but give people protection from such an event.
There has been no word on the plan being voted on in the legislature this session.
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