Online Sports Gambling Legality

Mar 12, 2020 Online gambling is also a can of worms. The Unlawful Internet Gambling Enforcement Act of 2006 makes it illegal to operate an online gambling website anywhere in the US.

• Under Louisiana statute 14:90.3, gambling by a computer is illegal, and players face severe punishment if they are caught gambling online. As a result, there are no legal Louisiana online sports betting sites. For more information, you can see the page dedicated to Louisiana sports betting. Online gambling is illegal in the Bayou State.
• The best-known sports betting market in the US is New Jersey, where almost all types of online gambling are legal at the moment. The most prominent online sports betting operators in the state are DraftKings and SportsDuel Sportsbooks, the latter one offering the mobile app as well.

Legal online sports gambling is increasing throughout the United States. Several states have already legalized sports betting, while many others have begun discussions on how sports betting bills will benefit their state and can be passed.

Locate your state below to see what the current legal status is and check out VegasInsider's list of online sportsbooks in each state to find reviews and get started with online sports wagering.

In a bold move, the US Supreme Court did away with the ban on legal sports betting in 2018. Since then, US states have been quick to move forward with bills and legislation allowing legal sports betting to operate on various platforms.

The first state to legalize sports betting since 2018 was Delaware, and others have quickly followed. Almost half the American states allow legal sports betting at brick and mortar establishments, although online sports betting is not as prevalent as yet.

As the concept of legal sports betting becomes more widespread, we anticipate more and more states to offer the best sports betting options through retail sportsbooks or sports betting apps.

States With Legal Online Sports Betting

Wondering how to place an online sports bet now that it's legal where you live? Just click on your State for our expert review about the best betting sites and sports betting apps available near you!

Updated on :

The best us sportsbooks have great welcome offers to get you started with you online sports bet

Rank	Sportsbooks	Welcome Offer	Legal States	Bet Now
1.	FanDuel Visit Review	Risk-Free Bet up to $1,000 T&C’s Apply, 21+	Available in CO, IL, IN, NJ, PA, TN, WV
2.	BetMGM Visit Review	Risk-Free Bet up to $500 T&C’s Apply, 21+	Available in CO, IN, NJ, NV, TN, WV

States With Sports Betting in Retail Only

Online sports betting may not be available yet in theses states but there are other options when it comes to betting on your favorite sports or teams. Read our full coverage of all available sports betting options in your home state!

States With Legalized Sports Betting Launching Soon

Come find out what's currently being discussed in your State and wether legal sports betting or even online sports betting could be coming soon to you. Click on your State for all the information you're looking for!

• Louisiana
• South Dakota

States Discussing Legal Sports Betting

Most of theses states are still in the first stages of considering legal sports betting. But situations vary and you may be in for a surprise when it comes to your own state's status about online sports betting.

• Arizona
• Connecticut
• Oklahoma

States With No Meaningful Sports Betting Legislation

At the moment these states seem pretty far away from any meaningful legislation towards online sports betting. We've still gathered all interesting information available about sports betting over there.

• Alabama
• Alaska
• Idaho
• North Dakota
• Texas
• Utah
• Wisconsin

Is Sports Betting Not Available in Your State? Try Daily Fantasy Sports

Daily Fantasy Sports (DFS) is a unique new way to bet on your favorite sports teams and players. If your interested in playing DFS, then read our Monkey Knife Fight review. Instead of playing against other players, you are playing against the MKF house.

Daily fantasy sports are available in some US states where online sports betting is not yet legal. This is because they are considered games of skill and not games of chance; therefore, they don’t fall under the gambling umbrella.

Daily fantasy games are a shortened version of the real thing, with competing teams handpicked by the DFS players. Contests can run for just one day or as long as a week. Traditional fantasy sports run for an entire season.

DFS is a fantastic alternative to legal sports betting. The fast pace and the excitement DFS generates makes it a growing market among US sports fans.

Rank	Daily Fantasy Sports	Welcome Offer	Claim Offer
1.	Monkey Knife Fight Visit Review	100% Match up to $50 - Code: BONUSMAX T&C’s Apply, 21+
2.	DraftKings DFS Visit Review	Deposit Bonus up to $500 T&C’s Apply, 21+

How To Bet On Sports In The US

Now that legal sports betting is taking off in the US, an increasing number of online sportsbooks are available with great offers and betting markets. If you want to experience online sports betting, the steps below can help you get started.

What Are The Laws In Your State?

Before you place your first bet, you need to establish that online sports betting is indeed legal in your state. Some states have legalized betting at a retail sportsbook but don't allow online betting. Others only have online options, and some have yet to make it a legal activity.

Choose Your Sportsbook

With legal sports betting still a growing area in the US, you may not have too many sportsbook options. Do some research as to which are the best sports betting sites, and then check each one individually, paying attention to the following:

Welcome bonuses

Payment options

Range of sports available

Terms and conditions

Register With A Sportsbook

You may have to visit the physical casino where a sportsbook is based, as some states don’t allow online registration. In other states, you can register online by completing a form with personal details. The sportsbook may request some documents to verify your identity, but this is a standard procedure for legal sports betting.

Fund Your Account

Choose from the options available to find your sportsbook account. Deposits are usually immediate, whether you pay by debit card, e-wallet, or prepaid card. Ensure that you activate any promotions or deposit bonuses by entering a promo code when requested.

Place Your First Bet

Select a sport and match from the list, and locate your betting slip. This slip is usually clearly displayed on the right-hand side of the screen. Enter your bet and follow any prompts that appear. Betting is a straightforward process, but don’t finalize your bet until you’ve checked the slip to ensure that all details are accurate. Submit your wager, and wait in anticipation to see if you're a winner!

Available Bet Types

The best sports betting sites have a variety of bet types. From straightforward moneyline bets to multi-selection accumulators, online sportsbooks cater to all levels of bettors. Here are some of the popular bets you may encounter at sportsbooks and on sports betting apps.

Moneyline

In a moneyline bet, you bet on a team to win the game outright. Although these are very straightforward bets, they aren’t always lucrative unless you bet on the underdog. Backing the favorite to win rarely gives you good odds.

Point Spread

Point spread wagering is standard in basketball and football. The sportsbook allocates either a negative or positive number to each team. This number indicates the number of points that must be subtracted from or added to the final score. The favorite in a match will have a negative number.

In a point spread bet, the winner or loser doesn’t matter. The important thing is that they cover the point spread. The favorite must win by the number of points allocated, whereas the underdog must win outright or lose by less than the number of points allocated.

Here’s an example. Team A is the underdog with a point spread of -3.5, and Team B has a point spread of +3.5. For team A to win the bet, it must win by 4 points or more. To win a bet on Team B, the team must either win outright or lose by 3 points or less.

Totals (Over/Under Bets)

A total bet is another straightforward wager. You are betting on whether both team’s combined score will be under or over the specified number. If the sportsbook sets the number at 50 and you believe that the total game score will be more than that, you bet over. Alternatively, you bet under if you feel that the teams won’t reach that combined total.

Parlays

Simply put, a parlay bet allows you to combine multiple bets on one slip. You can include different bet types and wager on various games, all on the one ticket. To win a parlay bet, all individual selections on the slip must win.

In-Play Bets

You place an in-play bet when a match or game is already underway. This type of betting is also called live betting. It allows you to wager when you feel the odds are more favorable in a game or more reflective of the state of play. Online sportsbooks often combine in-play betting with live streaming of matches.

Props

Props bets, or proposition bets, are smaller wagers placed on specifics within a game and don’t rely on a game’s outcome. They are popular in football betting, but we see prop bets more and more on the best sports betting sites.

You can wager on anything from the Most Valued Player to the time of the first touchdown in a game. These bets are more for entertainment and fun than the serious side of online sports betting.

Futures

Online Sports Gambling Legal

As the name suggests, a futures bet is one on a game that’s taking place some time from when you place the wager. The NFL Super Bowl and NBA Finals are popular options for futures betting.

You would usually place a futures bet at the start of a season for the final game. To win the bet, the team you’re backing must make it through to the finals and then win.

Popular US Sports Betting Events

Legal sports betting in the US hasn’t been around long and has yet to reach some states. However, US bettors have embraced this activity and regularly wager at online sportsbooks or sports betting apps on various sports and tournaments. Some of the best sports betting is on these popular events.

• Super Bowl
• Kentucky Derby
• NBA Finals
• World Series baseball
• FIFA World Cup
• Stanley Cup Final (NHL)
• PGA Golf
• College Football Playoffs
• Rugby World Cup
• Triple Crown
• Major League Soccer (MLS)
• UEFA Champion's League

Where Is Sports Betting Legal In The US

Ever since Nevada made the initial move to legal sports betting, there has been a steady stream of states following suit, with many states keen to provide the best sports betting options. Some states are in the process of passing the necessary bills, while others are lagging a bit further behind and still deciding on the relevant structures for regulation.

It’s interesting to note that during 2019, a whopping $13bn passed through sportsbooks’ coffers. This turnover shows that the American public was more than ready for legal sports betting and have eagerly welcomed this pastime. Here’s a rundown of 20 of the states where legal sports betting is in the making.

Nevada Legal Sports Betting

Nevada has operated legal sports betting since 1949. It was one of the few states exempt from the Professional and Amateur Sports Protection Act implemented in 1992 to ban sports betting countrywide.

Sports betting is thriving in Nevada. Players can bet offline at one of the many casinos in the state or online at some of the best sports betting sites. Bettors must be within the state lines to wager at online sportsbooks.

Delaware Legal Sports Betting

After Nevada, Delaware was the second state to legalize sports betting, and it did so on June 5th, 2018. Before this, though, residents could still place 3-team parlays on NFL games. The reason was that some sports bets had been allowed before the implementation of PASPA.

Although online gambling is legal, Delaware does not yet allow online sports betting. Players must visit one of the three physical casinos in the state to wager on a sports match or team.

New Jersey Legal Sports Betting

New Jersey launched legal sports betting soon after Delaware, on June 11th, 2018. In the state, wagering is widely available at physical casinos, racetracks, and online at various sports betting apps.

The New Jersey Division of Gaming Enforcement regulates legal sports betting in New Jersey. Players must be within state lines to bet online, although they don’t have to reside in the state.

West Virginia Legal Sports Betting

West Virginia became the fifth US state to join the ranks offering legal sports betting. The activity was legalized in March 2018, with the first bets placed in August that same year. There are currently five casinos where you can wager offline on sports.

Online sports betting became legal in December 2018, with BetLucky.com. After four months, however, this app shut down due to a dispute with its technology provider. FanDuel and DraftKings stepped up and have been operating their online sportsbooks and sports betting apps in WV since 2019.

Pennsylvania Legal Sports Betting

After the Supreme Court dropped the federal ban on sports betting in 2018, Pennsylvania activated its 2017 law legalizing sports betting in the state. Retail sportsbooks were the first to open in November 2018, with online sportsbooks following about six months later.

SugarHouse was the first sports betting app in Pennsylvania. Not to be outdone, others like DraftKings and FanDuel quickly followed, and there are currently eight online sportsbooks available to bettors.

Rhode Island Legal Sports Betting

Joining the list of states with legal sports betting was Rhode Island in November 2018. Residents and visitors to the state can visit the two brick and mortar casinos in Rhode Island for the best sports betting on sports teams and matches.

In early 2019, online sports betting went live across the state. To register, bettors must present at one of the two Twin Rivers casinos to verify their identity. Once verification is complete, you can wager on the sports betting apps from the comfort of your own home.

Colorado Legal Sports Betting

After gaining approval for the bill allowing sports betting in November 2019, Colorado launched legal sports betting on May 1st, 2020. There are 33 casinos in the state, and each can apply for a license to operate a sportsbook. At present, over twenty have secured licenses for legal sports betting.

Online sportsbooks must partner with a physical casino to secure a license to offer online sports betting. There are already numerous sports betting apps live in the state for Coloradans to wager on, with a handful more waiting in the wings.

Iowa Legal Sports Betting

August 2019 saw the launch of both retail and online sportsbooks in Iowa. Iowa was the first state in the upper midwest to offer legal sports betting and the first in America to simultaneously launch both retail and online betting. All 19 casinos in the state have secured licenses to provide their best sports betting options.

To wager online in the state, bettors must first register at a physical sportsbook. Once registered, you can place bets on sports betting apps from anywhere in the state. By January 2021, bettors should be able to register online.

Illinois Legal Sports Betting

Legal sports betting in Illinois went live in March 2020. This was nine months after Governor Pritzker signed the capital bill that included legislation for legal sports betting. Residents of and visitors to Illinois who are over 21 and within state lines can wager on professional, collegiate, and international sports events.

BetRivers was one of the first online sportsbooks to operate in Illinois. It opened to the public in June 2020, and other sports betting apps soon followed. There are now five in Illinois, including some of the best sports betting sites, such as DraftKings and FanDuel.

Montana Legal Sports Betting

Montana was one of the few states where PASPA didn’t restrict sports betting. Running sports betting in bars and taverns, albeit via a lottery system and not a sportsbook, remained legal.

Legal sports betting launched in Montana in March 2020 and the Montana Lottery oversees this process. You can choose to wager via the sports betting app from Sports Bet Montana or at one of 180 kiosks for legal sports betting located throughout the state.

Indiana Legal Sports Betting

Indiana was the 13th state to legalize sports betting, and it went live in September 2019. Fittingly, Governor Holcomb placed the very first sports bets. The industry has developed enormously, and fourteen gambling establishments now hold licenses to operate sportsbooks.

Online sports betting took off one month later in October 2019. DraftKings and BetRivers were the first of the best sports betting sites to launch in Indiana. Other online sportsbooks followed, and an estimate shows that 80% of all sports wagers in Indiana take place online or through sports betting apps.

Michigan Legal Sports Betting

Michigan welcomed the first legal sports bets at casinos in Detroit in March 2020. For a sportsbook to operate, it must have a land-based, physical partner. This partner can be one of the three commercial casinos in Michigan, or one of the twelve Indian tribes that operate 23 tribal casinos.

Online sports betting is yet to get going in Michigan. Although plenty of the best sports betting operators are ready to hit the ground running, they are likely to only get the green light in 2021.

New York Legal Sports Betting

New York first legalized sports betting in 2013; however, it couldn’t go live until after lifting the federal ban. Legal sports betting finally got underway in July 2019, at sportsbooks located in commercial and tribal casinos only.

For now, mobile and online sports betting isn’t an option in New York. Sports betting apps can launch in the state after lawmakers draft new laws to expand the reach of current legislation.

New Hampshire Legal Sports Betting

Legal sports betting started in New Hampshire at the end of 2019 and is still somewhat limited. DraftKings currently has a monopoly, and the only way to wager on sport in the state is through the DraftKings sports betting apps.

DraftKings has a firm grip on sports betting in New Hampshire, although the state Lottery intends to offer a sports betting option. We also expect multiple retail sports betting facilities to open in the future.

Tennessee Legal Sports Betting

Tennessee opened up to legal sports betting from the beginning of November 2020. It is the only state offering wagering through sports betting apps and online sportsbooks only. There is currently no option for retail outlets.

BetMGM and FanDuel were among the best sports betting operators to open in Tennessee. Other sportsbooks are waiting for the go-ahead to operate online, but there are no plans at this stage for any physical outlets for legal sports betting.

Online Sports Gambling Legality Gambling

Virginia Legal Sports Betting

Sports betting became legal in Virginia in April 2020. Legal sports betting falls under the Virginia Lottery Board’s control, which anticipates going live in 2021. Initially, only online sportsbooks will operate; however, the Board has earmarked six cities to develop casino complexes in the future.

Twenty-five of the best sports betting operators have applied for licenses to operate their sportsbooks in Virginia. It’s possible that we won’t find out who they are until the Lottery Board announces the successful applicants.

Oregon Legal Sports Betting

Sports betting became legal in Oregon in August 2019 and is controlled by the Oregon Lottery. The following month, the first sportsbook for legal sports betting went live at Chinook Winds, a tribal gaming facility.

Oregon Lottery launched an online sports betting app called Scoreboard to facilitate sports wagering in the state. There are no other sports betting apps available in Oregon.

Maryland Legal Sports Betting

Maryland voters made it clear in a recent referendum that they want legal sports betting in the state. It’s now up to the lawmakers and regulators to develop the framework for sports betting and decide on the necessary rules.

There are currently no legal sports betting options in the state, apart from horse racing. This situation is likely to change in 2021, provided the legislature passes the sports betting bill. Once this happens, the governor can sign the legislation into law, and legal sports betting will become a reality.

South Dakota Legal Sports Betting

In November 2020, voters in South Dakota chose to allow legal sports betting, but only in Deadwood. Deadwood is a gaming town in the Black Hills region of South Dakota and home to most of the state’s casinos.

While lawmakers are pushing for legal sports betting to launch in 2021, it doesn’t allow for online sports betting at this stage. We’ll have to wait a while longer before sports betting apps and online sportsbooks are signed into law.

Louisiana Legal Sports Betting

In November 2020, Louisiana’s voters chose to legalize sports betting in the state. While it’s clear from the recent referendum that legal sports betting is very much in demand, it won’t happen overnight. If all goes well, you could see sportsbooks launching later in 2021.

Online sports betting may take longer to reach Louisiana. The recent vote didn’t include either online sportsbooks or sports betting apps, and lawmakers may only discuss it after finalizing legal sports betting.

Legal Sports Betting FAQ

What Is The Minimum Age For Online Sports Betting?

The minimum age for legal sports betting varies. Some states allow people 18 years and older to bet, while in others, bettors must be 21-years-old. You must check the laws of the state that you reside in, or are visiting, for the correct minimum age.

Which Of The Online Sportsbooks Should I Join?

You can join as many sportsbooks as you would like to. Do your research and choose those with the best sports betting options and payment methods you’re comfortable with.

How Much Money Should I Bet?

Online sportsbooks have minimum and maximum wager limits. You can wager as much or as little as you would like to, but the amount must be within the set limits.

Can I Download An App For Betting?

The best sports betting operators tend to have downloadable sports betting apps, usually for both iOS and Android devices. If not, then you can access online sports betting through your web browser on your device.

When Did Sports Betting Become Legal In The USA?

The Supreme Court overturned the law prohibiting sports betting in 2018. Since then, legal sports betting has become prominent in many states across America.

What Sports Can I Wager On?

There is a wide range of sports available at online sports betting sites, although each sportsbook is different. Find a sportsbook that offers the sport you want and register to place your bets.

Is Online Sports Betting Safe?

Betting online is perfectly safe as long as you do so with a legal, licensed sportsbook. Each sportsbook should be licensed and regulated by an appropriate authority, and you can find this information on the sportsbook’s website.

What Is In-Play Betting?

“In-play” or “live” bets in online sports betting are ones placed while a game is underway. You can watch the game unfold and place bets according to how the teams are performing.

Can I Register With More Than One Sportsbook?

Yes, you can. The number of online sportsbooks that you choose to register with is up to you. You might find better odds for some sports on other sports betting apps. For this reason, it can be beneficial to use different sportsbooks for different sports.

What Are Daily Fantasy Sports?

In daily fantasy sports, you select your team from an allocated pool of players and compete against other fantasy teams. Contests take place over a day or a week, but the timeframes are shorter than for classic fantasy games that unfold over a season.

History Of Sports Betting Legislation In The US

The Beginning

Like many countries, gambling in the United States of America has its roots in centuries-old history. It started with lotteries, which in the 17th and 18th centuries were excellent ways to raise funds. Among other things, these funds went towards developing schools and universities. Yale, Harvard, and Princeton all benefited from lottery funding.

Fast forward to the 19th century, and many people perceived gambling as linked to corruption. In 1860, authorities banned all forms of gambling and sports betting, apart from horse racing. In those days, horse racing was viewed differently to other sports betting types and was generally enjoyed by the elite society.

Horse racing experienced a boom in the latter part of the 19th century. This changed in 1910 when the gambling ban was extended to include lotteries. Although horse racing was still exempt, the stigma attached to gambling and sports betting resulted in many racetracks closing down.

The Middle

The gambling landscape changed again in the 1930s when funds were in short supply after the Great Depression. In Nevada, authorities lifted the ban on table games where players bet against the house, like poker and blackjack. One thing led to another and, in 1949, the state eventually legalized sports betting.

High taxes, organized crime, and various Acts prohibiting the movement of information and materials required for sports betting led to many sportsbooks closing down. However, in the mid-1970s, the government imposed lower taxes on sportsbooks, and for the first time, a sportsbook could operate inside a casino.

The Interstate Horse Racing Act of 1978 was a turning point for sports betting. This Act made it legal for bettors in states with legal gambling to wager on horse races outside their state. It was a sign that lawmakers recognized the potential in regulated sports betting. Congress reduced taxes on sportsbooks even further, resulting in a boom across Nevada.

Professional And Amateur Sports Protection Act

In 1992, Congress introduced the PASPA. This Professional and Amateur Sports Protection Act led to a massive decline in sports betting. It prohibited states from allowing sports betting on professional and amateur sports, with a few exemptions. Horse and dog racing could continue, as could sportsbooks in Las Vegas and sports lotteries in Delaware, Oregon, and Montana.

Contrary to expectation, PASPA didn’t sound the death knell for sports betting. Some four years later, the internet became an integral part of connecting bookmakers to bettors. On January 17th 1996, online sports betting was born and the first wager was placed across state lines. Online sportsbooks started to flourish and became a viable form of legal sports betting.

Unlawful Internet Gambling Enforcement Act

Online sports betting hit a snag in 2006 when the federal government passed the Unlawful Internet Gambling Enforcement Act (UIGEA). This Act made accepting money from someone participating in illegal online gambling on US soil a criminal act.

While it didn’t specifically prohibit online betting, the UIGEA targeted the financial transactions linked to sports betting. The result was that online sportsbooks with any legal or financial connection to the US withdrew from the country.

The Future

In May 2018, the Supreme Court of the United States ruled that PASPA effectively took away each state’s authority to regulate sports betting. SCOTUS overturned the federal ban imposed by PASPA. Each state now has the responsibility of determining how to monitor and control online betting within state lines.

Since the overturning of the ban, there’s been a massive movement towards legal sports betting. More and more states are putting structures in place to make the best sports betting available to its residents.

Final Thoughts On Legal Sports Betting

It’s no secret that legal sports betting is becoming popular worldwide. The age of technology and a general shift to an online environment has brought the best sports betting options to our screens.

Sports betting apps make connecting to the best sports betting operators as easy as a few clicks, and legal sports betting offers players of a range of sports and betting options without leaving our homes.

With most US states already embracing legal sports betting, the rest are sure to follow. As long as sportsbooks comply with regulations and bettors gamble responsibly, legal sports betting is here to stay.

In contrast to other states that have either legalized online gaming or taken significant steps towards doing so, Texas has made no progress whatsoever towards legalizing any type of gaming in the state. There are little to no prospects at the current time for Texas to legalize online gaming. The gambling landscape is Texas is sparse, at least from a legal perspective, due to cultural factors inherent in Texas.

Texas Sports Betting Q&A 2020

Will Texas legalize sports betting?

Where is the closest legal sports’ betting to Texas?

What are the Texas sports betting laws?

Does Texas allow Daily Fantasy Sports?

What are the taxes in Texas on gambling winnings?

Frequently Asked Questions

Will Texas legalize sports betting?

Legislation to legalize sports betting is currently on the books, but without a concrete timetable. However, with five professional franchises in the Dallas area and another four in Houston, most feel it is a matter of time. With over 28 million residents, the sports betting market is huge.

Where is the closest legal sports’ betting to Texas?

Texans in the western panhandle and in the eastern parts of the state can cross state lines into New Mexico and Arkansas respectfully. These are the two closest physical locations where a Texas resident can legally bet on sports games.

What are the Texas sports betting laws?

Under the penal code of Texas, most gambling is illegal. Texas residents can gamble at Native American casinos in the state. Currently, there are ongoing legislative discussions to legalize sports betting, but to date, the law lists it as at least a misdemeanor crime.

Does Texas allow Daily Fantasy Sports?

This question depends on who you ask. According to the Texas State Attorney General, DFS contests violate the state’s laws against gambling. There is a pending legal case involving DFS providers who are still accepting Texas residents for DFS contests.

What are the taxes in Texas on gambling winnings?

Gambling outside the Native American casinos is illegal in Texas. Pinpointing the tax rate on any winnings is tough. The state doesn’t have an income tax, so to avoid potential tax evasion problems, the best solution is to apply the state’s so-called sin tax on such things as gambling.

What is Allowed and What Isn’t is 2020

Texas is one of the strictest states in the U.S. when it comes to betting laws. In fact, Texas Hold ‘Em is one of the most popular games in the country, but if you gambled on it in Texas, you could face a misdemeanor charge. Under the penal code, any form of gambling is illegal. Gambling is defined in the state law as any bet based on the notion of winning or losing something based purely on chance. Residents are restricted from betting roulette, blackjack, and poker, both at casinos and online, as long as they are in state property.

Contents

This said, there are three casinos that operate in lands that are Native American territory inside, or just outside, the Texas border where Texas residents can go to gamble. Texas law does not apply to these lands, and therefore, casino gambling is allowed. Texas is very big, so these three casinos may be very far away from you if you live in the state. There is Naskila Gambling, located in eastern Texas in Livingston. About an hour north of Dallas is the WinStar World Casino and Resort located just over the Texas border in Oklahoma, where casino gambling is legal. The third location is in Eagle Pass in extreme southwest Texas at the Kickapoo Lucky Eagle Casino and Resort.

Sports Betting in Texas

Currently, sports betting is not allowed in Texas. This includes mobile online and gambling. However, horse racing and parimutuels betting are legal in the state, and there are tracks throughout where gambling enthusiasts go to and place wagers. Furthermore, DraftKings and FanDuel are allowed to operate in the state, and fantasy sports enthusiasts are allowed to use those websites to play daily fantasy sports games. However, while you are allowed to play daily fantasy sports, there hasn’t been a bill to regulate it yet. FanDuel has taken the more conservative road and has pulled out of Texas.

Is Betting on the Horizon in 2020?

Within the last six months, Rep. Eddie Lucio filed H 1275, legislation that would authorize and regulate sports betting operations, including mobile and online betting, in the state. The bill requires a referendum that would amend the state constitution. If passed, it would then need to be approved by voters in the November election. House Resolution 61 is also on the House floor, which would authorize betting on professional and collegiate sports. In order to be placed on the ballot for voters in November, two-thirds of both the Texas House and Senate must approve Lucio’s bill. While many consider it a long shot in the near future, if more states continue to pass legislation, Texas will eventually be pressured to pass betting legislation for the first time. In other words, as the nation goes, so will Texas.

Existing Gambling in Texas

While other neighboring states are starting to allow gaming outlets, Texas only has three casinos in the state. Commercial casinos are by law not permitted to operate in Texas. Most of the gaming in Texas is centered on the Texas State Lottery and limited horse racing venues. The three casinos in the state are Native American casinos. Two of these casinos have been the subject of protracted litigation in which the state successfully closed the casinos. These casinos restarted operations on their own after the National Indian Gaming Commission issued a legal opinion stating that these casinos were not illegal. The matter is back in court, where the state has again attempted to shutter the casinos. Texas has undertaken numerous efforts over the years to crack down on what it views to be illegal gambling. In addition, various types of poker rooms have been established where the operator charges players “rental fees” so as not to run afoul of restrictions against receiving money from a pot as an organizer of a game of chance.

The act of gambling is not per se illegal in itself in Texas. Residents of the state wager on DFS and through offshore casinos and no enforcement actions have been taken against them. There is nothing that prohibits these activities. Offering gambling as an operator, however, is illegal in Texas, and the restrictions are extensive. However, these restrictions are not necessarily clear, and they are inconsistently enforced. There is enough gray area in Texas gambling laws that creates some uncertainty for operators to devise new types of gaming that may not necessarily be illegal.

Currently, the black market for gambling in Texas is strong. In addition to the poker rooms, there are slots in Texas that operate either in spite of or with the tacit endorsement of law enforcement. One loophole that is exploited is that some slot machines pay non-cash prizes since the illegality is the payment of cash prizes. This loophole originated from the fact that legislators wanted to ensure that amusement machines that awarded prizes would not be considered illegal gambling.

Other slot machines simply operate behind closed doors. Some counties receive tax revenue from licensing slot machines that may or not be violating the law. The case of slots evidences both the vague nature of Texas laws and the amount of gambling that occurs, notwithstanding the prohibitions in the law.

Prospects for Gaming Expansion

In addition, there are no efforts underway in Texas that would legalize sports betting. Numerous pari mutual venues have expressed an interest in accepting sports wagers if they were to be legalized. Numerous gambling legalization bills have been introduced in the past, but they have never received a vote in the Texas Legislature. Instead, they have been sent to committee where the bills have died. Even in the event that the bills cleared the legislature, they would likely face a veto from the Texas Governor who maintains his opposition to gambling.

Even legislation that would have legalized and regulated daily fantasy sports in Texas never made it out committee and languished after it was introduced. DraftKings & FanDuel do not operate their daily fantasy product in Texas. At this point, Texans are left to hope that demographic changes in the state could ultimately change the political calculus in a way that would permit online and expanded gaming in the state because the current leadership is intractably opposed. Other neighboring states such as Oklahoma, New Mexico, and Louisiana have expanded gaming regardless of the political bent of those that control the levers of power in the states.

Notwithstanding, studies that show that expanded gaming can have a $1.7 billion impact on the Texas economy, political forces in the state vehemently oppose gaming. The black market in the state is already estimated at close to $2 billion. The bulk of the opposition to gambling is based on moral and religious objections to wagering. In addition to opposition based on moral grounds, some Texas opponents of gambling claim that expended wagering would lead to greater spending on social programs and regulation. Interestingly enough, the Texas Attorney General signed a legal brief supporting New Jersey in the case of Murphy v. NCAA, but his support should not be interpreted as an endorsement of gambling. Instead, he viewed the federal ban on sports wagering as an encroachment on state’s rights.

It is unlikely that legal gaming expansion will come to Texas anytime soon, and little can change that reality even though gambling is already occurring. Perhaps if the state receives evidence that Texas residents are traveling outside of the state to gamble, a movement would begin to expand gaming in Texas to keep revenues within the state. That, however, is doubtful to occur. As is, Texas is losing potential revenues as its residents are betting offshore and illegally within the state, and that revenue could be taxed. Control of the state government would need to change hands at this point in order for gambling to be expanded in any form in the state. The best possible outcome for gambling proponents at this point is that voters are able to decide the question of gaming expansion in a referendum.

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