DraftKings CEO Hopeful for Texas Online Sports Betting

Will Texas online sports betting be legalized by 2025? At least one prominent person thinks so.

That person is DraftKings CEO Jason Robbins. He conveyed his optimism during a recent earnings call with shareholders. Why exactly does he think online sports betting in Texas will soon be legal? Here’s what he had to say, as relayed by Covers’ Brad Senkiw:

“I think Texas has a real shot. [A sports betting bill] got through one chamber last year. The Texas legislature doesn’t meet in 2024 so we’re really gearing up for 2025…I think that once the states in certain regions start moving on iGaming more, you’ll see a more rapid succession. I also think the need for tax revenues is going to increase. I think there’s some delay in that with some of the COVID relief money that was sent to states.”

This is certainly an interesting stance for a number of reasons. Most notably, many experts believe it’ll be a while before Texas sports betting actually gets legalized due to a variety of factors.

Which isn’t to say that Robbins is wrong. He makes a good point about the popularity of online sports betting in the United States opening more doors. We’ve already seen it happen to some degree. A half-decade ago, less than 20 percent of the country offered legal online sports wagering. Fast forward to 2024, and almost 30 states allow online sportsbooks to operate in-market. What’s more, that number is only expected to climb.

And yet, no one’s denying Texas online sports betting will be legalized…eventually. It’s going to happen. But will it happen by 2025?

Are There Enough Signs that Say Texas Sports Betting will be Legalized by 2025?

Beyond Robbins’ sentiments, there are other positive harbingers for the future legalization of Texas online sports betting. Perhaps most importantly, the Las Vegas Sands Corporation purchased a majority stake in the NBA’s Dallas Mavericks. The company then followed that up by acquiring mass amounts of land in the area.

This is all seen as a grand plan to construct a gambling mecca in Texas replete with casinos, pro sporting venues and, yes, sports betting. This isn’t so much speculation as a fact. Las Vegas Sands, along with former Mavs owner and current organizational lead Mark Cuban, have openly opined about the idea for a while.

Given Las Vegas Sands’ reach and influence, it stands to reason they wouldn’t make so many ambitious purchases on a whim. Surely they will continue to lobby on behalf of online sports betting legalization in Texas. But by entrenching themselves in the market so thoroughly and substantially, could they also know something the public does not? Perhaps that state legislators are warming up to the legalization of Texas online sports betting and casinos? Or is this simply a bet being made on the eventuality of it all? Remember, Texas profiles as a top-three sports betting market (once legalized) in the United States. Select experts believe it might even yield the most sports betting revenue in the USA because it’s the rare state with a cabal of premier NCAA sports teams and professional sports teams. Entering the market too early, so to speak, is better than doing so too late.

Then again, this can’t just be a lark. Like Robbins said, Texas sports betting legislation was approved by the House in 2023. Is legalization maybe closer than many realize?

Plenty of Challenges Still Await the Legalization of Sports Gambling in the Lone Star State

Far be it from us to say Robbins’ optimism is misplaced. As one of the most powerful industry insiders, he’s privy to information and initiatives we don’t know exist.

At the same time, his positive outlook represents a stark departure from what we’re seeing. In fact, right now, it feels like Texas is years away from allowing online sportsbooks in the United States to enter the market.

First and foremost, the state needs more momentum from the Senate. Though last year’s Texas sports betting bill made it past the House, it died in the Senate chamber. Lieutenant Governor Dan Patrick, who influences the Senate’s agenda, has maintained the push doesn’t have enough support to warrant a vote. Many have speculated, however, his stance is either party-specific or the result of his own preferences.

If either one is the case, Texas online sports betting will have a tough time getting legalized with Patrick still in office. Progress may have to wait until he’s out. That, or there will need to be a shift in legislative power during the 2024 elections. This is to say, the Texas Senate will need more liberal-leaning policymakers on hand who are willing to prioritize the issue.

2025 Feels Like an Ambitious Timeline for Texas Online Sports Betting

If we’re being honest, Robbins sounds overly optimistic on the imminent approval of Texas online sports betting. Never mind the issue of Senate support. The legalization of online sports betting in Texas might simply be too much too soon.

As many already know, Texas has yet to legalize commercial casinos, let alone retail sports betting. That figures to loom as the bigger priority, since it’s more likely to draw tourists into the state.

Not only that, but there’s no telling how long it could take Texas online sports betting to launch once it’s legalized. It may require a constitutional amendment, which means it would have to appear on the 2026 election ballot. And from there, the state would need to set up an infrastructure to regulate it—something it obviously does not already have in place.

Perhaps we’re being too pessimistic. We have seen fast sports betting launches in the past. Maybe Texas follows that blueprint. At the moment, though, it seems like an incredibly tall order.

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