While the future of Texas sports betting remains largely unresolved, one thing on the subject has become undeniably clear: If and when it does get legalized, it almost certainly will not allow for online gambling.
Plenty of state officials have pushed for online sports betting in Texas to be part of any legislative packages that get approved. So yes, the interest exists. But to this point, The Lone Star State has proven unable to get retail-only initiatives over the hump. Pushing a Texas online sports betting agenda figures to be even tougher—especially when you consider what has transpired this year.
Despite yet another failure to get a Texas sports betting proposal out of both the House of Representatives and Senate, policymakers did recently discuss (and debate) the matter.
House Joint Initiative 134 (HJR 134) was the bill on the table. Like usual, it garnered notable support among House members. And like usual once again, it barely registered on the radar of the Senate, in no small part because Lieutenant Governor Dan Patrick has made it clear he will remain an obstacle to getting Texas sports betting approved.
Still, the divide between supporters and opponents isn’t necessarily noteworthy this time around. It is the status quo in The Lone Star State. Even when Texas sports betting initiatives are bi-partisan, chasms remain between figureheads on both sides of the aisle. HJR 134 actually stands out because of what it doesn’t include: the legalization of Texas online sports betting.
On-Site Texas Sports Betting Remains the Primary Focus
Writing for Deadspin, Vinolin Naidoo breaks down the ins and outs and politics driving the discussion around HJR 134. And through the entire unpacking, you will notice a conspicuous absence:
“On February 12, 2025, State Representative Sam Harless filed House Joint Resolution 134 on the floor of the Texas House…As expected, this move has sparked strong reactions and renewed fresh debate on the hotly-contested subject of legal sports betting in Texas. There is cautious optimism from the Bill’s sponsors and supporters that it may finally clear this important hurdle and open the doors to the first legal sports wager in Texas. In the same vein, those opposing the HJR 134 remain resolute in their stance, pointing to the problems that legalization might bring.
“As the Bill has progressed, a few things have come to light. HJR 134 has now been amended to focus primarily on retail sports betting, unlike the original draft which included online sportsbooks in its provision. Notable omissions include any provisions for tax allocations from gaming revenue, and the place of online sports betting. Both topics have invoked some serious discussion, as expected.”
This decision to leave off online sports betting is unique given The Lone Star State’s market size. Texas profiles as no worse than the second-most lucrative sports betting industry in the United States. That revenue stream will be severely impacted by the absence of mobile wagering.
The Vast Majority of Bets are Now Placed Online
None of this is an attempt to overstate how much Texas sports betting projections will change without the online element. Its absence is a really big deal.
Consider the recent trends throughout sports betting in the United States. The overwhelming majority of bets placed are processed through online wagering sites. Most states now see well more than 90 percent of their betting handles come from online sportsbooks. There is no beating the convenience and access of being able to place wagers from anywhere. Focusing on retail-only models, as Texas is doing, imposes yet another barrier for entry among potential customers.
Of course, when you look at the concerns among Texas officials, this approach seems to be by design.
Why Texas Seems to Be Favoring Retail-Only Sports Betting Initiatives
The Lone Star State, despite its name, is not actually alone on this front. Other states have exclusively legalized retail sports betting. Nebraska and Wisconsin both fall under this umbrella. Meanwhile, places still looking to legalize sports wagering continue to emphasize online-only models. This includes California and Minnesota.
Online sports betting is nevertheless growing in popularity, and most states now offer it in some capacity. The Texas sports betting blueprint would run directly counter to industry trends. However, opponents and conservative supporters both argue that mobile betting is more dangerous. The very access that makes it so easy and appealing, they say, is also what drives problem gambling.
It is tough to argue against this stance. Multiple studies have already shown that the legalization of sports betting in general leads to notable increases in problem gambling reports. If you remove the most accessible form of wagering from the table, it should, in theory, help stifle the inflation of that issue.
Granted, many states favor the retail-only route to protect tribal-casino business models. Tribal nations are usually granted exclusivity over gaming rights. Many states have ruled this extends to sports betting legalization.
This part of the equation isn’t really an issue for Texas sports betting. The state doesn’t allow for traditional casinos at the moment, either. And really, that’s the issue that may signal the future of sports betting in The Lone Star State more than anything else. Until Texas expands its casino laws, it seems unlikely to enter the sports gambling fracas—regardless of whether proposals cater to online betting or on-site options.
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