Texas Could Unlock Billions with Regulated Gambling

Texas remains one of the few states to embrace legalized sports betting, but a growing body of evidence suggests that doing so could lead to significant economic benefits. A recent study from independent research firm Eilers & Krejcik highlighted the untapped potential of legalizing sports betting in the Lone Star State, offering a glimpse of what such a lucrative revenue stream could mean for Texas.

Political Opposition Remains Strong

Eilers & Krejcik’s newest study projects that legal sports betting could reap more than $360 million yearly in direct tax revenue. Beyond that, it would create over 8,000 jobs and provide an annual economic output of $2.6 billion. Other non-gaming revenues from associated industries could add another $24.3 million annually.

According to a recent Fox Business report, many supporters of legalized sports betting argue that Texas has been slow to adapt to a changing landscape. Co-owner of the Texas Rangers, Neil Leibman, has been one of the most outspoken supporters of bringing sports betting into the state, emphasizing the opportunity to retain billions in revenue that currently flows to neighboring states or illegal markets.

Legalizing (sports betting) would allow us to keep billions in revenue here at home, supporting crucial needs like education and lowering property taxes — all without raising other taxes.

Neil Leibman, Texas Rangers co-owner

However, Texas lawmakers remain divided on the issue. Lt. Gov. Dan Patrick, who has the backing of most Republicans in the state Senate, has long been a barrier to the expansion of gambling. Without broader Republican support, any push for legalized gambling is unlikely to succeed. This resistance has made Texas an outlier in an era where many states are embracing gambling to boost state revenues.

Legalized Wagering Could Provide a Vital Revenue Stream

Despite these challenges, casino and sports betting operators are ramping up their lobbying efforts before the 2025 legislative session. Sports betting giant DraftKings has announced plans to hire a government affairs specialist to push for legalization. Other leading operators expected to join these lobbying efforts include Las Vegas Sands, BetMGM, and FanDuel.

Gambling proponents argue that Texans are already betting on sports, either illicitly or by crossing the border to do so in other states like Louisiana, where wagering is legal. Charlotte Jones, Dallas Cowboys executive VP, noted that regulating such activities could help Texas benefit from increased oversight, consumer protections, and economic growth.

By legalizing sports betting, we can protect our communities, enhance the fan experience, and ensure Texas isn’t losing out to other states or the black market.

Charlotte Jones, Dallas Cowboys executive vice president 

While the economic case for regulated gambling in Texas is strong, the political barriers remain significant. Still, proponents remain optimistic, pointing to the potential education funding, property tax relief, and infrastructure project benefits. With the 2025 legislative session around the corner, the battle over gambling in Texas will likely command center stage.