
Texas sports betting moves a step closer with committee passage
Quartet of bills pass House State Affairs Committee vote ahead of full discussion on House floor


The drive towards regulated sports betting in Texas gained momentum on Monday with the passage of four pieces of legislation authorizing the vertical in the Lone Star State’s House of Representatives.
House joint resolutions 102 and 155, as well as supporting legislation included in house bills HB 1942 and HB 2843, were each considered by the House State Affairs Committee, with the quartet of bills being passed by favorable votes of 9-3.
Passage of the bills follows lengthy hearings at committee stage in which each piece of legislation was considered by committee members.
The quartet of bills now passes to the House floor for further consideration and, crucially, a final vote.
HB 1942 and HJR 102, filed by Representative Jeff Leach, aims to legalize sports betting through constitutional amendment following a statewide referendum.
The bills are backed by the Texas Sports Betting Alliance, an advocacy group which counts online sportsbook operators and local sports teams among its membership.
Leach’s bill, HJR 102, allows Texas-based sports franchises to operate sportsbooks, with each franchise able to apply for one online sports betting license and partner with one online sports betting operator.
In addition, professional golf tournaments forming part of the PGA Tour and the state’s racetrack operators will be able to apply for licenses to operate sportsbooks.
This legislation could see franchises in the NFL, NHL, NBA, MLB, MLS, and WNBA apply for licenses.
HJR 102’s companion bills deal with the individual regulations governing the vertical in areas including licensing, taxation, and standards by which operators must adhere to in the state.
Licenses will cost $500,000, with renewal fees of $100,000 for a sportsbook operator and $10,000 for a sports betting service provider.
Operators will be taxed at a rate of 10% of their respective gross gambling revenue (GGR), with 2% of this redirected to problem gambling treatment groups operating in the state.
HB 1942 is a mobile-only sports betting bill, which would see operators pay an application fee of $500,000, with a tax rate of 10% on operators adjusted gross revenue from sports betting in the state.
House bill 2843 calls for the creation of so-called ‘destination resorts’ – land-based casinos which operate retail sports betting across the state – as well as allowing Texas’ existing horseracing operators to develop these resorts.
With a population nearing 30 million, Texas would represent a potentially huge coup for the sector, second only to California, where competing statewide ballot initiatives aiming to legalize the vertical failed to garner enough support from Californians in November.
Several advocates have spoken out in favor of sports betting legalization in the Lone Star state, including ex-Texas Governor Rick Perry and Dallas Cowboys owner Jerry Jones.