FanDuel Trying to Help Legalize Texas Sports Betting

Will a Texas sports betting bill be proposed and ultimately passed during 2025 legislative sessions? Nobody can say for sure. But we do know that FanDuel will be helping the push move forward—no matter how long it takes.

The online sportsbook’s parent company, Flutter, recently confirmed as much. “In a FanDuel presentation led by Flutter CEO Peter Jackson during the company’s Investor Day in New York, the gambling company outlined strategies for helping pass sports betting legislation in Texas, California, and Florida,” reports PlayTexas’ Dan Holmes. “Those are the three largest markets in the US without legal sportsbooks.” (Note: While sports betting in Florida is legal, only Seminole Tribe operations are allowed to offer it.)

Holmes goes on to note how FanDuel plans to lobby for Texas sports betting. Their strategy seems to rest on a four-fold plan:

Creating compelling messaging around the industry’s economic impact
Driving community impact [from tax revenue]
Demythologizing the [sports betting] industry
Amplifying breadth & depth of commitment to revenue growth

While FanDuel has sponsored similar lobbying in the past, their public interest remains notable. More than anything, it says a lot about how desirable The Lone Star State is to online sportsbooks in the United States. The question is: Does FanDuel’s involvement make the legalization of Texas sports betting any more likely?

Why FanDuel and Other Sportsbooks Are So Interested in Texas Sports Betting

Interest in Texas sports betting legalization can be summed up in one word: money. This is why any online sportsbook wants to enter a market.

However, online sports betting in Texas figures to be particularly lucrative. As Holmes notes, The Lone Star State is among the three largest markets without it. But Texas also projects to be perhaps the second most lucrative sports betting market in the United States, period.

California is expected to be the first, if and when they legalize sports betting. After that, New York and Texas will likely compete for the runner-up position. Basically, though, The Lone Star State will be no worse top-three sports betting market. And you can imagine that it is worth a lot of money to online operators such as FanDuel, DraftKings, Caesars, etc.

Research Shows There is Plenty of Money to be Made in The Lone Star State

Online sportsbooks are not just going off rough estimates from other markets or gut feelings when they single out Texas as a priority. Their sentiments are rooted in data. And the data proves that Texas sports betting is a potential goldmine.

A 2022 study showed that one million Texans place illegal sports wagers totaling more than $5 billion a year, according to ABC 13. That is a bonkers amount of money. And keep in mind, this does not seem to account for legal wagers placed by Texans. Residents have the ability to cross state lines and bet on sports elsewhere. In reality, then, that number could be even higher.

What’s more, state policymakers have provided pretty lucrative estimates for prospective tax revenue. Consider what Representative Dan Huberty said the last time a Texas sports betting bill was on the table: "I think our target in the first year was over $100 million. One-hundred to $150 million and then growing it up to $500 million. This is the opportunity to take advantage of what I would see as money that's laying on the ground. It can then be dedicated towards a very specific purpose."

This projection is significant for two main reasons. Firstly, that is a lot of additional revenue for the state. Secondly, and more importantly from a sportsbook’s perspective, these projections are just a fraction of what companies stand to make.

Remember, tax revenue is generated from online sports betting sites giving the state a percentage of their total profits. These rates can vary, but even if Texas sports betting includes a 50 percent tax, we are talking about a market that might be worth billions of dollars per year to sports betting operators.

Significant Challenges Away Attempts to Legalize Texas Sports Gambling

With all the money both state and operators stand to make, it seems almost wild that Texas doesn’t yet have sports betting. But that is part of the problem.

Opposition to Texas sports betting is strong. And not just among conservatives, either. More liberal and moderate members of the House of Representatives and Senate have expressed concern. These worries tend to fall under a number of buckets. Upticks in problem gambling reports and predatory advertising and marketing practices are the two downsides mentioned the most.

Beyond that, though, The Lone Star State has strict gaming laws in place. Casinos have yet to even be commercialized or legalized. And casino expansion typically precedes sports betting. Granted, it is not an exact science. But existing casino laws make it easier to create a sports betting infrastructure. After all, you already have gambling regulation in place.

On the flip side, casino expansion usually comes first because, until 2018, sports betting legalization wasn’t a viable option. So, Texas green lighting sports betting before casino expansion is not outside the realm of possibility.

The Wait in Texas Could Still be a While

That is not to say it’s likely. On the contrary, many don’t see The Lone Star State getting sports betting so long as Dan Patrick is Lieutenant Governor. He holds a ton of sway over the Senate. And he is also a staunch opponent of sports betting.

Any change in Texas’ sports betting laws may mandate a wholesale shift in Patrick’s agenda. Failing that, initiatives could be hard-pressed to pass until he retires. And it doesn’t sound like he’s stepping away soon. Earlier this year, he announced his intention to run for re-election in 2026. If he earns another term, it could push the Texas sports betting timeline back to 2030 or beyond.

For what it’s worth, we think The Lone Star State will make changes before then. Sports betting is too prevalent now for them to sit on the sideline. Plus, markets with backing from online sportsbooks tend to get over the hump eventually.

With all of that said, we’d still be surprised if there’s any movement in 2025. The state was too far away from an agreement last time around. More critically, we have yet to receive confirmation a sports betting bill will be proposed next year. We will know for sure soon enough. But the early indications are Texas sports betting will be a 2026 or later issue.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: