Although sports betting is legal in 38 US states plus Washington DC, it remains illegal in the two most populous, California and Texas. But while hopes of a second ‘Gold Rush’ in the Golden State may lie in the hands of tribal groups that currently hold exclusive rights, the position in Texas is somewhat less definite.
With another push underway at the legislature in Austin, backed by leading sports teams, the financial and political muscle being brought to bear in the Lone Star state might prove to be an unstoppable force.
Economically, Texas is the most powerful state in the Union. Once part of Mexico, it has developed into a powerhouse of epic proportions. Texas has a GDP of US$2.4 trillion, representing 9% of the entire country’s output. This figure places Texas above the economies of Canada, Russia, Australia, South Korea and neighbouring Mexico. If the state of Texas was a sovereign nation, its economy would be the 8th largest in the world.
Texas is blessed with the largest oil and gas fields ever discovered, accounting for 43% of US oil production and 25% of its natural gas. Through wind and solar energy, the state also generates 20% of all US electricity. In short, it is where the ‘power’ of the nation lies.
Add to this the wealth and influence of those seeking legislative change and it is not unreasonable to suggest that sports betting in Texas could become something of a ‘Slam Dunk’.
In addition to the Dallas Cowboys and the Houston Astros, the call for change is backed by the NBA’s Dallas Mavericks, and The Mavs are majority owned by Miriam Adelson.
Miriam, as readers will know, is the widow of Sheldon Adelson, founder of Las Vegas Sands. Upon his death, Mrs Adelson herself became owner of Las Vegas Sands, making her the 5th wealthiest woman in America, with an estimated net worth of US$30bn. She has committed $13m to the campaign for legalised destination resorts.
Photo Credit: Jim Watson/AFP
Not only that, but Mrs Adelson is a prolific donor to Donald Trump and the Republican Party, contributing over $170m. In 2018, she was awarded the Presidential Medal of Freedom and the Adelson’s ongoing support for Republican initiatives is said to have “cemented their influence on US politics.”
Texas Senators, John Cornyn and Ted Cruz, are both Republicans, as is State Governor, Gregg Abbott, and 25 of the 38 (66%) of the District Members in the House of Representatives. Governor Abbott has voiced his support for 2025 legalisation and whilst Lieutenant Governor, Dan Patrick, will not call a vote on the expansion of gambling unless there is a Republican majority support, it seems that politics, population and purse-strings may ultimately prove persuasive…
Meanwhile, over in California…
Despite the 2022 rejection of ballot measures that would have legalized sports betting in California, legendary screenwriter and journalist, Nicholas Pileggi, believes that California cannot be the only place without legalised sports betting, telling our colleagues at Gambling.com, “Why leave it to a bunch of gangsters?”
Pileggi, whose movie credits include Goodfellas and Casino, says that legal sports betting is “another tax revenue for the states,” taking illegal business away from underworld bookies that are neither taxed nor regulated.
States have collected billions of dollars in tax revenue from legal sports betting for projects such as road construction, education and addiction programs. According to the US Census Bureau, New York alone collected $188.53m in sports betting tax revenue during Q2 of 2023.
This month’s Super Bowl, the nation’s most heavily bet single sporting event will have driven home the differences between the states that maximise the opportunity, including California’s immediate neighbours Oregon, Nevada and Arizona, and those that do not.
At ICE 2025, tribal leaders indicated they might not seek another public vote on sports betting in California until 2028, by which time the opportunity to generate several billion dollars in tax revenue will have been missed.
