The Current Legal Landscape of Sports Betting in Texas
As of early 2026, sports betting remains illegal in the state of Texas. This applies to both online and in-person retail sportsbooks. The state has some of the most restrictive gambling laws in the United States and has historically been resistant to expansion. While there have been significant legislative pushes to legalize sports wagering, particularly during the 2023 legislative session, these efforts have not yet been successful. The Texas Legislature meets biennially, meaning the next opportunity for lawmakers to consider sports betting legislation will be in 2025. Should a bill pass, it would also require a constitutional amendment, which must be approved by a public vote. This means the earliest that legal sports betting could realistically launch in Texas would be late 2026.
History of Sports Betting Legislation in Texas
Texas has a long and complex history with gambling. For much of the 20th century, most forms of gambling were prohibited. The state has made exceptions for the Texas Lottery, charitable bingo, and pari-mutuel wagering on horse and greyhound racing. The conversation around legalizing sports betting gained significant momentum after the U.S. Supreme Court's 2018 decision to overturn the Professional and Amateur Sports Protection Act (PASPA), which had federally banned sports wagering. In recent years, coalitions of professional sports teams, sportsbook operators, and prominent Texas figures have advocated for legalization, citing potential tax revenue and the prevalence of illegal offshore betting. However, these efforts have faced opposition from those with concerns about problem gambling and other social issues.
Sports Betting Options in Neighboring States
For Texans looking to place legal sports wagers, traveling to a neighboring state is the only option. Here's a look at the status of sports betting in states bordering Texas:
- Louisiana: Sports betting is legal and fully operational in Louisiana, with numerous online sportsbooks and retail locations available. Major operators like FanDuel, DraftKings, BetMGM, and Caesars are all active in the state.
- Arkansas: Arkansas has both online and retail sports betting. There are three primary online sportsbooks: Betly, BetSaracen, and Oaklawn Sports.
- New Mexico: Sports betting is available in New Mexico, but only at tribal casinos with retail sportsbooks. There are no state-wide mobile betting options.
- Oklahoma: Similar to Texas, sports betting is not yet legal in Oklahoma.
Available Sportsbooks in Neighboring States
If you travel from Texas to Louisiana or Arkansas, you will have access to some of the top sportsbooks in the country. These platforms offer a wide range of betting markets and promotional offers.
Top Sportsbooks in Louisiana
- FanDuel: Known for its user-friendly interface and same-game parlay options.
- DraftKings: Offers a massive selection of betting markets and a great live betting experience.
- BetMGM: Features a robust rewards program and a premium feel.
- Caesars: Provides a large number of odds boosts and a strong loyalty program.
Sportsbooks in Arkansas
- BetSaracen
- Betly
- Oaklawn Sports
Common Types of Sports Bets
When you do get the chance to bet, you'll encounter a variety of wager types. Here are some of the most common:
- Moneyline: A straightforward bet on which team will win the game.
- Point Spread: A bet on the margin of victory. The favorite is given a handicap, and the underdog is given a head start.
- Over/Under (Totals): A bet on the total combined score of both teams in a game.
- Parlay: A single bet that links together two or more individual wagers for a higher payout. All of the bets in the parlay must win for the parlay to win.
- Prop Bets (Propositions): Bets on specific events within a game that don't necessarily relate to the final outcome, such as a player to score a touchdown.
- Futures: A long-term bet on an event that will happen in the future, such as a team to win the Super Bowl.
Tax Implications for Gambling Winnings
Even though sports betting is not legal in Texas, any gambling winnings are subject to federal taxes. The IRS considers gambling winnings to be taxable income. You are required to report all winnings, and you may receive a Form W-2G if your winnings exceed a certain threshold. The federal withholding rate on gambling winnings is 24%. Since Texas has no state income tax, you would not have to worry about state taxes on your winnings.
Mobile vs. Retail Betting
When sports betting does become legal in Texas, lawmakers will have to decide whether to allow mobile (online) betting, retail (in-person) betting, or both. Mobile betting offers the convenience of being able to place wagers from anywhere within the state, while retail sportsbooks provide a more traditional, social experience, often located at casinos, racetracks, or sports stadiums.
Tips for Bettors in Texas
While you wait for legalization, here are a few tips:
- Learn the Basics: Familiarize yourself with the different types of bets and betting terminology.
- Follow the Legislation: Keep up to date with the latest news on sports betting legislation in Texas.
- Manage Your Bankroll: If you travel to a legal state to bet, always gamble responsibly and only wager what you can afford to lose.
- Focus on a Few Sports: It's easier to become a successful bettor by specializing in one or two sports that you know well.
Responsible Gaming Resources
Gambling can be addictive. If you or someone you know has a gambling problem, there are resources available to help.
- National Council on Problem Gambling: Offers a national helpline at 1-800-522-4700.
- Gamblers Anonymous: A fellowship of people who share their experience, strength, and hope with each other to solve their common problem and help others to recover from a gambling problem.
- Texas Commission on Gambling: While focused on existing legal forms of gambling, they may have resources for problem gambling.