In the Lone Star State, Texas politicians are experiencing more support from a somewhat controversial group of businesses: prediction markets. Per a recent report from a major outlet in the state, prediction market companies Kalshi and Polymarket gave $57,500 to Texas Senate Republicans after Lt. Gov. Dan Patrick asked senators to consider “gambling loopholes” allowing companies to operate in Texas. Kalshi provided the bulk of the money, donating $50,000 to the Senate Republican Caucus in early April, just weeks after Patrick directed senators to study prediction markets. Polymarket donated $7,500 to the GOP caucus less than a week later. The donations are the first by either prediction market company for lawmakers in Texas.
In this article, SBS will be going over the latest gaming updates coming from the Lone Star State, along with even more notes and information coming from Texas and beyond.
The donations are the first by either prediction market company to lawmakers in Texas. Both companies also have hired lobbyists as lawmakers prepare to consider restrictions on their operations. Kalshi hired former Secretary of State John Scott as one of three lobbyists in Texas. Polymarket has hired one. Neither Kalshi nor Polymarket has donated to a Democratic caucus in the House or Senate, according to the most recent campaign filings with the Texas Ethics Commission. The companies also have not contributed to any House member or political organization affiliated with either party.
House Speaker Dustin Burrows, R-Lubbock, did not ask House members to examine prediction market regulation in his interim charges. Per the same report, Sen. Tan Parker, the chairman of the GOP Caucus, did not respond to an email or phone call about the donations. Polymarket declined to comment on its donation, and Kalshi did not respond to a request seeking comment. Patrick’s office did not respond to an email or phone call seeking comment. Patrick does not have a role with the legislative caucus, but he does control the Senate agenda.
According to the update, the Senate Committee on State Affairs is scheduled to hear testimony about prediction markets on Sept. 14. The committee would then issue a recommendation on potential bills for the 2027 legislative session. Texas has not been a gambling-friendly state, and efforts to legalize mobile sports betting or allow destination casino resorts have fallen short. While Gov. Greg Abbott has warmed to some kinds of gambling expansion, Patrick has remained a strict opponent.
“Gambling is a tough nut to track,” Brandon Rottinghaus, a political science professor at the University of Houston, said. He also added that while it’s unclear if senators will be included to tackle prediction markets, “It definitely will be something that the lieutenant governor is going to try to push.”
Moreover, prediction markets allow users to wager on outcomes ranging from NFL games to political elections, including the Senate race between Democratic Rep. James Talarico of Austin and Republican Attorney General Ken Paxton. Gambling opponents view such wagers as another form of traditional betting. Kalshi and Polymarket also took wagers on the current GOP convention in Dallas, including which phrases Trump will use and who will appear onstage. For instance, one report noted that about $373,000 had been wagered on 35 phrases Trump might say during the two-night convention, while wagering on Paxton’s remarks had reached $348. “Our biggest concern is that Kalshi and other prediction markets are normalizing gambling, especially sports betting, by presenting it as an ordinary financial trade,” Jonathan Covey, director of policy for Texas Values, a conservative advocacy group, said.
Efforts by states to regulate or prohibit prediction markets have produced legal battles over whether state or federal authorities control the industry. The Commodity Futures Trading Commission has said prediction market wagers are event contracts – more like buying stocks than placing bets – and cannot be regulated by individual states.
Additionally, a bipartisan group of 44 state attorneys general disagreed this summer, signing a letter asserting that states should regulate prediction markets and describing platforms such as Polymarket and Kalshi as a new form of casino gambling. Moreover, the report notes, Paxton did not sign the letter despite previously issuing legal opinions meant to enforce the state’s strict gambling laws, as another outlet in Texas previously reported. His office has not explained why Paxton did not join the other attorneys general. Indeed, it is perhaps fairly safe to assume that things will continue to develop more quickly in the Lone Star State.
Once you are all up to speed in relation to the latest gambling news coming from the Lone Star State, make sure to check out the excellent array of information available to you at SBS. For even more info on the state in this report, make sure to peruse the Texas betting sites rundown, which goes over the latest updates coming from the state as it relates to gaming news and beyond. Switching gears, for those eligible and qualified patrons looking for a new gaming outlet, the BetOnline sportsbook review guide is a must-read resource that goes over the perks of BetOnline and how it might make sense for you. Finally, for those on the go, the best betting apps breakdown is a fantastic resource on mobile wagering that goes over how this can be a viable option, how you can qualify, and what it means for patrons.
About the Author
Chris Boline is a Reno-based business development professional and freelance sports writer with over a decade of experience covering the NBA G League, Los Angeles Chargers, and national football and basketball. His expertise spans the NFL, NBA, UFC, boxing, golf, and motorsports, along with topical news, marketing, and promotional content. A proud University of Nevada graduate, Chris earned both his BS in Management & Economics (2015) and MBA (2023). He is active in the Reno community, serving on boards such as the Nevada Sagebrush Alumni Chapter, NCET, and the College of Business Alumni Association, where he was past president (2022–23). Notable honors include: - Two-time University of Nevada Alumni Chapter of the Year honoree (2017, 2021) - 2021 NCET Professional Services Organization of the Year (with TAC) - 2016–17 Reno Bighorns MVP, awarded by the Sacramento Kings - Nevada Press Association Award for Best Sports Column (2015) - Former Editor-in-Chief of The Nevada Sagebrush Chris blends his passion for sports with a strong background in sales, marketing, and community engagement.
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