Online Sports Betting in Texas 2024
Wondering about the current situation in the Lone Star State? Presently, online sports betting isn’t legal in Texas, but there’s a growing movement pushing for change. Though the latest bill stalled in 2023, 2025 could bring new possibilities. Meanwhile, we’ve got you covered with the latest updates, the best betting options, and tips for managing your taxes on winnings.
Dive in to get the full picture and stay ahead in the Texas sports betting scene!
🔑 Key Takeaways
- Find out why online sports betting is illegal for Texan bettors.
- Discover the best TX alternative sports betting sites.
- Learn about what sports you can bet on in Texas.
Top Social Bookmakers in Texas
Although real-money sports betting isn’t yet legal in Texas, you can still enjoy the excitement through sweepstakes sportsbooks. These platforms offer a unique, legal workaround by using virtual currencies for making sports picks and entering contests that can lead to real cash prizes.
Our team has selected the top social bookmakers for you:
Online Gambling in Texas: A Quick Overview
Texas remains cautious about legalizing sports betting, with the latest push in 2023 ultimately stalling due to significant opposition in the state Senate. This setback means Texans will likely need to wait until 2025 for another legislative attempt.
However, several gambling options remain available, giving locals legal ways to play. This includes tribal casinos, lottery games, horse racing, daily fantasy sports, and sweepstakes sportsbooks.
Here’s a detailed table on Texas’s current status for each type of gambling:
| Gambling Type | Legal? | Current Situation | Legal Age |
|---|---|---|---|
| Online Sportsbooks | No | Texas prohibits online sports betting. Efforts to legalize remain a challenge but could return next year. | — |
| Retail Sportsbooks | No | In-person sports betting is illegal, with past bills facing significant Senate opposition. | — |
| Social Sportsbooks | Yes | Sweepstakes sportsbooks are allowed, letting players make picks legally using virtual currencies and prizes. | 18 |
| Horse Racing | Yes | Legal pari-mutuel betting is available at authorized tracks for live horse and greyhound races. | 18 |
| Daily Fantasy Sports | Yes | DFS is permitted, allowing players to create fantasy teams and compete for cash prizes. | 18 |
| Casino Gambling | Yes | Available only in three tribal casinos offering Class II games, such as bingo-style machines and card games. | 18-21 (varies by casino) |
| Lottery | Yes | The state lottery offers games like Powerball, Mega Millions, and more, available online and at retailers. | 18 |
| Casino Cruises | Yes | Legal when ships depart from Texas ports into international waters, allowing games like blackjack, poker, and slots. | 21 |
Popular Sports and Teams in the TX Betting Scene
Texas boasts a rich sports culture, with passionate fans supporting some of the nation’s most iconic teams across the major leagues and college athletics. Let’s see an overview of the teams that define the state’s sports landscape.
Moreover, here are the sports you can bet on in Texas:
Football
- Dallas Cowboys: Known as “America’s Team,” the Cowboys are the NFL’s most valuable franchise, with a huge fan base both in Texas and worldwide.
- Houston Texans: Despite being a newer team, the Texans have strong local support, drawing large crowds at their home games.
College Football
- University of Texas Longhorns (NCAA Division I): The Longhorns’ football program is a powerhouse with a massive fan base and a rich tradition of success.
- Texas A&M University Aggies (NCAA Division I): The Aggies’ football and basketball programs attract passionate fans across the state, representing a proud tradition in Texas sports.
Basketball
- Dallas Mavericks: Led by owner Mark Cuban, the Mavericks captured the NBA title in 2011 and continue to have a loyal following.
- Houston Rockets: The Rockets have a long-standing rivalry with the Mavericks and a strong presence among Texas basketball fans.
- San Antonio Spurs: With five NBA championships and a large social media following, the Spurs are one of Texas’s most beloved teams.
Baseball
- Houston Astros: The Astros are a high-performing team with a dedicated fan base and a reputation as one of the MLB’s most valuable franchises.
- Texas Rangers: Playing at Globe Life Field, the Rangers draw large crowds and are popular across Texas.
Hockey
- Dallas Stars: The Stars are the face of hockey in Texas, with a strong fan base in the Dallas-Fort Worth area and an exciting style of play that resonates with Texans.
Soccer
- Houston Dynamo: With passionate fans filling PNC Stadium, the Dynamo are a major part of Texas’s soccer scene.
- FC Dallas: Established in 1996, FC Dallas has claimed multiple titles, including the Supporters’ Shield in 2016.
- Austin FC: As the newest team on the Texas soccer scene, Austin FC has quickly gained a loyal fan base since their debut in 2021.
How to Declare Taxable Winnings in Texas
This section explains how do taxes work on sports betting winnings, especially for Texan bettors.
In the Lone Star State, all gambling winnings, including sports betting, are taxable. Here’s a quick guide to declaring yours accurately on your tax return to avoid any penalties:
- Report All Winnings: The IRS requires that you report all gambling winnings, including sports bets, regardless of the amount.
- Tax Forms and Withholding:
- If you win $600 or more or 300x your original wager, the sportsbook will send you a W-2G form.
- Winnings over $5,000 are subject to an automatic 24% tax withholding before payout.
- Track Your Betting Activity: Keep records of your wins and losses, as losses can offset winnings if you itemize deductions on your tax return.
So, What’s Next for Texas Online Sportsbooks?
Although not legal yet, Texas sports betting is inching forward, with recent efforts from FanDuel actively lobbying for legalization as of October 2024. However, advisory firm Eilers & Krejcik Gaming forecasts that legal sports betting in Texas may not arrive until 2028 or later. Which indicates a longer wait than many had hoped.
With a massive fan base and powerhouse sports teams, Texas stands poised to become one of the country’s largest sports betting markets once legalized, rivaling New York and California. The Texas Sports Betting Alliance and other stakeholders are expected to push for renewed legislative efforts in 2025, bringing Texas closer to a legal betting future.
Stay updated on state gambling regulations with our up-to-date, linked guide.
References
- HB1942 Bill of 2023 — Retrieved Nov 12, 2024
- The Texas Sports Betting Alliance Take Action Form — Retrieved Nov 12, 2024
- Legalizing Sports Betting In Texas High On Wish List For FanDuel — Retrieved Nov 12, 2024
Frequently Asked Questions
No, the sportsbook is not yet legal in Texas. However, Texas residents can still use DraftKings Fantasy to participate in daily fantasy sports contests.
Texas has strict gambling laws, permitting only a few types of betting. Texans can legally bet on horse racing and greyhound racing. Additionally, they can enjoy some casino gambling and sports betting via social sports betting sites.
The legal gambling age in Texas is 18 for activities like the lottery, bingo, and horse racing, but some casinos set a minimum age of 21.
