Study Highlights Economic Potential of Sports Betting in Texas Amid Legislative Roadblocks

A new study by Eilers & Krejcik highlights the immense economic benefits Texas could gain by legalizing sports betting. The report, titled “Legal Online Sports Betting in Texas: Revenue Forecast and Economic Impact Analysis,”projects over $360 million in annual tax revenue, $24.3 million in non-gaming tax revenue, and an economic output exceeding $2.6 billion annually. Additionally, it predicts the creation of 8,000 new jobs, making sports betting a potentially transformative industry for the Lone Star State.

for the measure is strong among prominent sports organizations and figures in Texas. Neil Leibman, co-owner of the Texas Rangers, emphasized the importance of retaining revenue within the state. “Texans are already betting; it’s time we make it safe and fair, while ensuring our state benefits. Letting Texans decide this issue is about economic opportunity and the freedom to choose,” Leibman stated.

Dallas Cowboys Executive Vice President Charlotte Jones echoed similar sentiments, advocating for a safe and regulated environment. She added, “By legalizing sports betting, we can protect our communities, enhance the fan experience, and ensure Texas isn’t losing out to other states or the black market.”

Political Resistance Clouds the Future

Despite clear economic incentives, the path to legalization is fraught with political challenges. Lt. Governor Dan Patrick, who wields significant influence in the Texas Senate, has expressed staunch opposition to gambling expansion unless it garners majority among Republican senators. This opposition stems from concerns about crime and societal impacts, rooted in conservative and Christian values emphasized during campaigns.

Efforts to advance sports betting legislation faced setbacks in 2023, when a bill ed in the state House but failed to reach the Senate floor. Proponents of legalization have since indicated they will not reintroduce similar measures until significant shifts occur in the Senate’s stance.

Stakeholders Push for Change

Industry leaders and stakeholders remain undeterred, continuing to advocate for legislative change in the 2025 session. Companies like DraftKings, FanDuel, and BetMGM, alongside Texas professional sports teams, are pushing for a bill that would allow voters to decide on sports betting in the 2026 elections.

Miriam Adelson, owner of the Dallas Mavericks, has also ed the effort, reportedly eyeing plans to integrate sports betting with a new entertainment complex in Dallas. This move underscores the high stakes and lucrative opportunities that Texas represents as the nation’s second-most populous state.

Balancing Economic Benefits and Political Hurdles

The study’s findings add urgency to the debate over legalized sports betting. With billions in revenue and thousands of jobs at stake, proponents argue that regulated betting would curb illegal gambling and provide much-needed funding for public projects like education. However, with staunch opposition in the Senate and no signs of softening resistance, the future of sports betting in Texas remains uncertain.

While stakeholders continue their efforts, final decisions ultimately rest with lawmakers, leaving Texans and industry leaders waiting to see if the state will embrace the economic opportunities offered by sports betting or maintain its status as one of the last holdouts.

Sources:

“Legalizing sports betting in Texas would pay huge dividends, study says,” MSN, Nov. 20, 2024.