Play it Safe: The Case for Legalizing Sports Betting in Texas

Authored by John R. Eakin, President of Abstract Data, Austin, Texas.

You can achieve a lot over the course of six years (or less). You can get both an undergraduate and master’s degree. You could write an entire book. You could make and release movie. The possibilities are endless and that’s seemingly a lot of time to get something done.

Unfortunately, it’s been six years since the Supreme Court gave states the chance to legalize sports betting for themselves and Texas is still missing out. While we typically lead the nation as the best state to for business (for two decades running – and counting), we’re one of just 12 states remaining that have not legalized sports betting, but we have the chance to right this wrong next session.

I’m a lifelong Republican and so is my wife, who is also very involved and has held many roles in the party too. We value individual freedom, seeing our state prosper, and keeping our citizens safe. By legalizing sports betting, we can advance all these things.

Many Texans are already betting on illegal platforms. Legalizing sports betting would keep Texans safe from bad actors that currently give users access to their black-market sportsbooks by locating their servers offshore. These illegal sites dodge any U.S. regulation, avoiding safeguards and protections for consumers, such as age verification and data privacy measures. In addition, Texas cannot collect any taxes on activity from illegal markets nor do we have any regulations to keep these bad actors in check.

To add insult to injury, our neighboring states, including Louisiana, Arkansas, and New Mexico, where sports betting is legal, are drawing Texans from across state lines to place legal bets. As a result, our neighbors are reaping the tax revenue – not us.

A safe and legal sports betting market in Texas could generate up to $648 million in tax revenue in the first five years and it wouldn’t cost taxpayers a dime. But right now – and six years after the Supreme Court gave us the green light to decide on sports betting for ourselves – we’re missing out on this revenue to other states and black-market sportsbooks. Texans are already placing sports bets; we need to regulate the market now and create a new funding source for critical state programs and tax relief.

In the 2023 legislative session, Texas lawmakers in the House passed HB 1942, which would have allowed Texan voters to decide whether to legalize sports betting. Ultimately, this bill failed to pass and failed to give Texans the freedom to choose for themselves. This session, I remain hopeful that our lawmakers will make the right choice this go-around by prioritizing our safety, freedom, and prosperity by allowing Texans to vote for a legal sports betting market.