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Lawmakers in Texas are once again pushing for a regulated sports betting and casino gaming market in the state, as two proposals have been submitted this week.
House Joint Resolution 137 (HJR 137) and House Joint Resolution 134 (HJR 134) were introduced to the House on Wednesday (Feb 12), and both aim to amend the Texas Constitution to allow for legal sports betting and casino gaming.
Should the Texas Legislature approve the resolutions, they would be placed on the ballot for a statewide vote in November, allowing citizens to decide on the future of gambling in the state. Other legislatures, including Maryland and Louisiana, have gone down similar pathways. Both states have regulated land-based and digital sports betting markets.
A Look into HJR 137
HJR 137 is the broader of the two bills and seeks to legalize both sports betting and casino gaming. It was introduced by Rep. Charlie Geren and includes strict limits on the number of casinos permitted in the state, ensuring a controlled expansion of the gaming market. Under his proposal, there will be no more than 10 licensed facilities in Texas, with each granted license valid for 40 years.
Operators would also face a 15% annual tax rate on casino and sports wagering revenue. Furthermore, it prohibits any additional state or local taxes on gambling earnings beyond stand business taxes, protecting operators from excessive financial strain.
A key feature of HJR 137 is its commitment to negotiate with federally recognized Indian tribes, allowing them to offer Class III gaming on their lands. This aligns with federal guidelines and ensures that tribal nations can participate in the state’s gaming landscape.
What Does HJR 134 Say?
While Geren is looking to fully expand the state’s gaming market, Rep. Sam Harless’s bill only has room for legalized sports betting and plans to achieve this by Camending Section 47, Article III of the Texas Constitution.
One of the significant distinctions between HJR 134 and earlier sports betting proposals is the specific criteria for entities eligible to operate within Texas. The resolution permits licensing for any professional sports team established before January 1, 2025.
Additionally, it opens the door for several other organizations to participate in this market. This includes professional sports teams in existence as of January 1, 2025, organizations that hosted an annual PGA Tour event prior to this date, and Class 1 racetracks operating as of that same date. Authorized representatives of these entities can also obtain licenses.
Despite these limitations, major players in the sports betting industry, such as Fanatics, BetMGM, FanDuel, and DraftKings, have expressed support for the legislation.
Karina Kling, spokesperson for the Texas Sports Betting Alliance, a coalition that includes these leading sportsbooks, emphasized the urgency of the situation, “We appreciate Rep. Harless introducing this constitutional amendment. Right now, unregulated sports betting is happening across the state, putting consumers at risk and costing Texas millions in lost tax revenue every year.
“It’s time to let Texans take control and decide if they want a strong, regulatory framework for sports betting — just like the 39 states that have already moved forward.”
Increased Support for Gaming Expansion, But Hurdles Remain
Earlier this month, Texas Governor Gregg Abbott confirmed that he would be open to seeing a regulated sports betting market in the state. This was followed by a survey by the University of Houston’s Hobby School of Public Affairs, showing that 60% of Texans would support legalized sports betting.
Billionaires Mark Cuban and Miriam Adelson have also expressed support for gaming expansion and invested millions of dollars into the legalization efforts. However, the power still remains in the hands of Lieutenant Governor Dan Patrick, who decides what gets voted in the Senate. Patrick has clearly stated that he would not call any gambling-related vote unless there was strong support from Texan GOP Senators.
Source: Next.io
