Texas Sports Betting Bill Includes Bizarre Stipulation

With another Texas sports betting bill up for consideration, analysts have started to parse the details of proposed legalization. To this point, the introduction of additional information is leading to more questions than answers.

Specifically, House Joint Resolution 134 (HJR 134) has some hazy language on who it would license to offer sports betting in Texas. This ambiguity is being interpreted in a number of different ways.

Some believe it is an attempt to maximize flexibility. This way, if HJR 134 features stipulations that must be renegotiated, the process theoretically becomes simpler.

Others, meanwhile, believe the lack of clarity in certain sections speaks to HJR 134 long-shot odds. Plenty of GOP members are already saying the bill will fail without ever getting off the ground. In theory, then, the overarching indecision within this piece of legislation could be a harbinger of its bleak outlook. More particular details aren’t being hammered out because policymakers aren’t that invested in it, or because they believe it will flop no matter what.

Beyond that, a handful of experts think the truth about HJR 134 lies somewhere in between. But does that sentiment hold up under further scrutiny?

Who Will Be Allowed to Obtain Licenses as Part of the Texas Sports Betting Bill?

While many questions are bubbling to the surface following the proposal of HJR 134, the matter of Texas sports betting licenses is garnering the most attention. This makes sense for a number of reasons.

For starters, licensing procedures tend to clue us into how expansive legalized sports gambling will be. A more limited number of licenses will suggest a more closed-door approach. This typically means on-site-only wagering. However, including a larger number of licenses can point toward the legalization of Texas online sports betting in addition to brick-and-mortar operations.

Now, as Mike McKean of Deadspin writes, HJR 134’s explanation of prospective sports betting licenses in The Lone Star State is pretty hazy:

“A few other important provisions within HJR 134 have also led to some heated discussion. The Bill suggested that professional sports teams, PGA Tour events, and Class I racetracks could qualify for betting licenses, even though no specific facts or figures were included. Texas can count 13 pro teams in the state, including seven from major leagues, plus three MLS teams, the WNBA Dallas Wings, and two women’s soccer franchises.

The state also plays host to four annual PGA Tour events and four horse racing tracks. The Bill also proposes that only entities existing prior to January 2025 would qualify for licenses, and that licensed operators will be permitted to partner with management service providers. As soon as the fine lines are cleared up and the licenses come into full effect, the pathway to legal wagering in Texas is opening up more clearly.”

The “more clearly” phrasing is doing a ton of heavy lifting here. Sure, Texas sports betting may have a better chance of getting approved once these details are hashed. But these are aspects that usually get resolved before sports betting legislation is ever proposed.

It Does Not Seem Like Online Sports Betting is Included in the Latest Texas Proposal

Another issue that has materialized as part of this process: online sports betting in Texas.

Initial iterations of HJR 134, as well as Senate Joint Resolution 16 (SJR 16), sought to capitalize on the growing popularity of online sports betting in the United States. Since then, the amended language in HJR 134, specifically, seems to have bounced that from the equation. Instead, the focus has shifted to retail sports betting in Texas.

This approach is a clear attempt to find the happy medium and sway enough opponents of Texas sports betting. Legalizing mobile betting operators increases accessibility to users, which in turn increases the proportion of problem-gambling cases that get reported each year. To be sure, this isn’t a matter of an opinion. It is just a fact.

Every state that legalizes online sports betting reports an uptick in calls to gambling addiction hotlines. Certain studies have even found that markets with online sports gambling see stark increases in the number of reported bankruptcies, as well as decreases in the capacity to save money. More studies must be done on this front, but early returns are catalysts for those who oppose sports wagering.

Markets that legalize online sports wagering do not completely overlook this downside. They simply decide the benefits outweigh the risk and allocate tax-revenue funds toward addressing the downsides.

With all of that said, retail sports betting is considered safer, if only because it is easier to regulate. It also requires extra steps. Physically visiting a sportsbook takes more of an effort than placing wagers from your phone. That creates a barrier to entry into problem gambling. It is not a panacea by any means, but it is a factoid that can sometimes resonate with sports betting skeptics.

Odds of Sports Betting Legalization in Texas Still Feel Slim

Given all of the undetermined elements of HJR 134, it sure does seem like Texas sports betting is not on track toward imminent legalization.

Indeed, the tenor of discussions can still change. But we know enough about past efforts and enduring opposition to see the writing on the wall.

On top of that, even if HJR 134 is successful, it will likely still require voter approval. That is somewhat atypical when only pushing for retail sports betting. Regardless, the earliest voters will cast their ballots on the matter is November 2026. The Lone Star State can always call a special vote, but once more, this requires a level of interest in sports betting the majority of state legislators have yet to show.

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