As 2024 draws to a close, the push to expand gambling in Texas—particularly online sports betting—has suffered setbacks due to electoral defeats and mounting opposition.
Any expansion of gambling would require voters to approve an amendment to the Texas constitution.
In 2023, the Texas House barely approved a measure to allow online sports gambling, drawing just one more than the 100 votes needed to pass a proposed constitutional amendment.
The measure was supported by the entire Democrat caucus and a minority of Republicans. However, the Senate killed the proposal by not giving it a hearing or a vote.
Then, the 2024 primary elections took out several members who supported the measure. They’ve been replaced by members who appear hostile to expanded gambling.
In addition to losing supportive members, the special interest lost its leader in the House, Speaker Dade Phelan (R–Beaumont). After being forced into a runoff election by a political newcomer, Phelan narrowly won by 300 votes.
During his campaign, former Gov. Rick Perry was highly visible in supporting Phelan. Perry is a lobbyist for the Sports Betting Alliance. Following the election, Perry was appointed as a senior advisor to Speaker Phelan.
Some saw the appointment as a signal that a Phelan speakership would prioritize another push for expanded gambling despite its unpopularity and the House hemorrhaging pro-gambling votes in the 2024 election.
Proponents of gambling expansion often cite potential revenue generation as a key benefit. However, studies and historical evidence from other states have challenged these claims.
Research has shown that states with legalized betting don’t see significant revenue increases. For instance, in Michigan, the state with the highest proportional contribution, gambling revenue totaled only 0.8 percent of annual state and local taxes. This mirrors Texas’ experience with the state lottery, which has never funded more than a week of public schooling in a given year despite being pitched as a solution for education funding.
Recent studies have revealed that legalized gambling—particularly online sports betting—can exacerbate financial instability and prolong poverty, especially among low-income populations. The economic burdens extend beyond individual losses, affecting families and communities through increased bankruptcy rates, job losses, and reduced productivity.
A study titled “Gambling Away Stability” found that legalizing sports betting leads to a rapid spread of betting behavior, with both the number of participants and frequency of bets increasing over time. This trend was associated with reduced savings and increased consumer debt levels.
Research from the University of California San Diego revealed that 96 percent of gamblers studied lost money gambling online. The study suggested that online gambling platforms are designed to be predatory, banning or throttling frequent winners to maintain a pool of losing players.
Despite the push from gambling interests, public opinion in Texas has shown increasing disapproval of gambling expansion.
A poll conducted by the Texas Family Project found that 84 percent of Republican voters viewed gambling negatively and considered it as addictive as drugs or alcohol. This growing disapproval has strengthened the position of gambling opponents in the state.
Conservative lawmakers and organizations have continued to resist gambling expansion efforts. Brady Gray, President of the Texas Family Project, stated, “Truthfully, there’s little to be gained through the expansion of gambling except for possibly an increase in violent crime and expanded welfare rolls.”
The Republican Party of Texas also opposes any expansion of gambling in the state.
As Texas enters 2025, the debate over online sports gambling remains contentious. Gambling interests will continue to push for legalization, citing potential revenue, and opponents will point out that the social, economic, and health risks associated with expanded gambling outweigh any potential benefit.
No ads. No paywalls. No government grants. No corporate masters.
Just real news for real Texans.
Support Texas Scorecard to keep it that way!
