For a little while now, Texas betting news has been overtaken with the update that local officials are sick and tired of prediction markets being in operation. However, some moves are in place to see if maybe Kalshi and PolyMarket could be banned in the Lone Star State at some point down the road. In some bad news for those markets, it looks like Texas' battle with the prediction markets now includes Ted Cruz, and he's coming out guns blazing so to speak.

According to multiple new reports, Cruz has shifted his focus to the prediction markets and he has put some legislation in place that could help things get regulated on a state-to-state level. As most of you know by now, things are regulated at the Federal level, meaning Texas has its hands tied behind its back a bit. Despite that, once the mid-terms come and go, Cruz is going to be ready to go all-in to see if he can help incorporate some change here. It'd be massive if he can.

"There is serious disagreement about whether the CFTC can unilaterally allow prediction markets to offer sports events contracts pursuant to the Commodity Exchange Act," Cruz said not that long ago in an interview with the Houston Chronicle. "Many simply see prediction markets as a workaround to state gambling laws. The courts are split. Ultimately, unless Congress acts, the Supreme Court may have to decide the issue."

Because of how open-ended the laws are in the state, it has opened the door for the prediction markets to thrive. We saw that in a big way this summer with World Cup action taking place in Dallas, and we also saw it with MLB betting flourishing a bit with futures bets too. It will be interesting to see if Cruz is successful with these new efforts, but he sure looks to mean business here. Only time will tell if significant change arrives or not.

There's no set timeline for when Texas will go all-in to ban prediction markets

What's causing a little bit of confusion here too is that there's no set timeline for when Texas will go all-in to ban prediction markets. However, once the November elections come and go, you've got to figure that the state, along with Cruz, will ramp up the efforts. The big deal here too is that Texas is a major market for companies like Kalshi and PolyMarket.

Despite there being 39 states with legal sports betting options, Texas is yet to get things over the line. Because of that, sports fans across state lines use the prediction markets for their betting needs. This is year-round too, as there are die-hard football, basketball, soccer, and baseball fans out there.

This is something Cruz knows all about, but the fact of the matter here is that Texas does not have things legalized, which forces people to use outside ventures to put money down on their favorite teams. Until that changes, citizens will rely on these prediction markets. Get things legalized, though, and the entire ball game will change.

Has there been any movement for Texas sports betting?

The main question people have on their minds right now is has there been any movement for Texas sports betting? Unfortunately, nothing but negative updates have come in. With the 2027 legislative session sneaking up on us, there isn't much optimism there that things are going to turn around.

For now, it seems like maybe 2028 will be the earliest that legal sports betting options will come in, but no one is going to hold their breath there. The uncertainty hangs over the Lone Star State like a dark cloud, with politicians evenly split down the middle on whether or not this is a good idea. Should it be that complicated?

Each month, Texas loses out on millions of dollars in potential sports betting tax revenue. This time of the year, NFL betting skyrockets around the country, but Texas misses out on cashing in from a big-time sports betting handle. How does that make any sense? The prediction markets will continue to benefit, however, which makes things all the worse. In order for that narrative to change, legalizing sports betting would flip the script. Maybe that comes in 2028? Who knows, but your guess is as good as ours if that happens or not.