Throughout the United States, countless states have voiced their displeasure when it comes to prediction markets, with the wheels getting in motion to bring them to a halt. For Texas sports betting, things remain illegal, but people have been able to use the markets for their needs. However, officials haven't been happy, which is why Texas not getting involved with the prediction markets ban is surprising.
According to a new report from the Dallas Morning news, 44 states moved forward by signing off in trying to wipe away the loophole that allows for Kalshi, PolyMarket and others to operate at a federal level. However, six states didn't join in on those efforts, with Texas being one of them. Wait, what? Yup, Texas decided not to join in on the efforts, which has left some people speechless, especially with so many lawmakers against it.
"Now Lt. Gov. Dan Patrick wants lawmakers to close what he calls "gambling loopholes" that allow online prediction markets to offer wagers on everything from sporting events and political speeches to weather patterns and concert lineups," the DMN said. "The markets have caused an uproar nationwide: 44 state attorneys general signed a letter in July to the Trump administration saying apps like Kalshi and PolyMarket offer a new form of casino gaming that states should have the authority to regulate."
It's hard to disagree with that. With sports betting as a whole being illegal in Texas, there's no reason that the prediction markets should be able to operate like this. However, only a handful of states have been able to push forward a bit in trying to slow things down, including Washington, which has essentially wiped off sports betting through the markets via online wagers. Texas not being able to do so and not pushing for it seems concerning.
U.S. appeals court rules against prediction markets, sets up likely fight at Supreme Court
Under scrutiny were the platforms' sports-related event contract offerings, which 44 states argue are nothing more than sports betting. However, the platforms — and their federal… pic.twitter.com/Bi6KdkVOyr
— TheManhattan (@ManhattanPress) August 30, 2026
The sports betting focus in Texas hinges on 2027 being a big year
As for things as a whole, there's no question that the sports betting focus in Texas hinges on 2027 being a big year for things trying to get across the line. With local legislation only meeting on odd years, this means there's even more pressure to try and get the green light given. Since 2026 was an even year, there was nothing that happened in terms of efforts. If anything, it gave more time for officials to try and game plan on a proper sports betting plan.
However, if things don't improve soon, and if Republicans and Democrats can't get on the same page this year, it could result in everyone in Texas having to wait until 2029 for legalization. Obviously, that would be a complete and total nightmare for so many people - the thought of legal sports betting being three years away is not ideal, which is why 2027 has to be when things hit big so to speak.
With that, though, it looks like prediction markets are still going to be available for people for the long haul. On one hand, sure, that's great news for bettors, especially those who dabble in both sports betting and political betting. On the flip side, though, Texas isn't getting a penny in terms of sports betting tax revenue, which simply can't be the case moving forward.
Cowboys betting is set to be on fire in Texas through the prediction markets
Focusing on a single sport, you better believe that Cowboys betting is set to be on fire in Texas through the prediction markets. That's because, with all due respect to the Houston Texans, the Cowboys are easily the most popular team in the state, with people ready to pack AT&T Stadium from start to finish this season.
While people won't be able to place prop bets or wagers on individual games, they'll be able to place futures bets. Per the top NFL betting sites, the Cowboys hold +1800 NFL betting odds to win the Super Bowl, which doesn't give people a ton of confidence that Dallas will win its first title since the mid 1990s.
However, Dak Prescott and CeeDee Lamb understand that the fanbase is going to be relying on them to make it a year to remember. It will be interesting to see if Dallas can win the NFC East and go on a deep postseason run, but it's safe to assume that people will be checking the updated odds frequently and putting money down on American's Team too. In order to do that, those fans in Texas can only do so through the prediction markets.
