Sports betting advocates are left looking toward the future after another lackluster result in the Texas Legislature’s regular session this year, a new local report from Texas points out. Per the article, the Texas Sports Betting Alliance (TSBA) has been working diligently for years to see state lawmakers prioritize the topic of sports betting. Sports franchises like the Dallas Cowboys, San Antonio Spurs, and Austin FC are members of the alliance, which has noted the untapped revenue potential that’s being left on the table. The TSBA says Texans wager $7 billion in unregulated offshore betting sites, meaning there’s an untapped potential of more than $360 million in tax revenue.
In this article, SBS will be going over the latest gaming news and updates coming from the world of Texas gambling legalization, and also share some additional notes.
According to the same report, Bread Alberts, president and CEO of the Dallas Stars, spoke with the local outlet back in February when the legislative session was very much in its infancy. “People are betting, we all know that,” Alberts said. “What they’re doing now in Texas is … it’s unregulated, and we’re not benefitting from it, so the teams aren’t benefiting from it, the state isn’t benefiting from it,” Alberts said. Despite the TSBA spending hundreds of thousands of dollars in lobbying at the state Capitol, sports betting legislation is seemingly dead in the water.
Former Spectrum News Capital Tonight anchor Karina Kling is now a spokesperson for the alliance. “Obviously, we’re disappointed, but we know that this is a marathon and not a sprint,” Kling said. Now, the alliance and other sports betting advocates will work to lay the groundwork for a push in the 2027 legislative session. “We’re going to educate people on what this would mean in terms of keeping Texans safe,” Kling also said.
Per the same article, Lt. Governor Dan Patrrick is a major obstacle in that reality. He has a final say in the state Senate and is against legalizing sports betting and gambling. With Patrick set to run for a fourth term, he could potentially remain a roadblock in two years. Chris Kraovil, a Dallas attorney for Dykema, says it’s an uphill battle. “Dan Patrick and many others, in the Republican leadership in Austin, view gambling as a very destructive social force. It’s pernicious, and they want to keep it out of Texas,” Kratovil noted. Forty states have legalized sports betting, according to the American Gaming Association. It’s been fair game in Louisiana since 2021.
Additionally, the local outlet reached out to Elliot Rapaport, the founder of Louisiana-based Birches Health, to discuss how they help Louisiana residents battle gambling addictions. “In general, the impacts of legalized sports betting can be seen quickly,” Rapaport said. “Unfortunately, new bettors may often be caught up in the excitement of new gambling products,” Rapaport says some effects of addiction include high suicide rates, divorce, and increased bankruptcy.
“There is no denying that there are significant societal impacts from gambling,” Rapaport said in an email. However, the TSBA argues that a regulated industry will allow tax dollars to go towards resources and studies. “Potentially, that $360 million could be even a lot more than we anticipate would go to, directly to tax revenue and helping with some of the vital resources that we could see take place here in Texas,” Kling said.
In other Lone Star gaming news, thirty game rooms were raided and shut down earlier this month in what federal authorities called one of the largest gambling schemes in Texas history. The feds dubbed the massive bust Operation Double Down. Sixteen people were charged with felonies, including conspiracy and money laundering, and $22 million was seized. However, a local outlet in Houston discovered a third, or 10, of those game rooms had been on law enforcement radar before, raided and reopened time and time again over the past decade.
Court records show most of these operations had been previously raided by one office – Harris County Constable Precinct 1. Constable Alan Rosen said it’s now the business owner, but rather the on-site manager who was usually arrested in his office’s raids. “The manager that’s actually there and managing the illegal operations … and it’s a misdemeanor (charge),” he said. Court records dating back to 2015 show Precinct 1 made 20 misdemeanor arrests at seven game rooms that were later part of Operation Double Down. All but one of those low-level charges got dismissed.
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