Is Texas Getting Nearer to Legalizing Sports Betting?

As recently as a year ago, there were serious doubts about Texas legalizing sports betting. However, the tide has been turning, and it's starting to look like Texas residents could be betting on sports by maybe next year. A major step in that direction went forward just this past week.

Constitutional Amendment Up for Vote

Before actual sports betting legislation can be passed, the Texas Consitution needs to be amended to allow for this form of gambling. The battle for that amendment is currently underway, and it's starting to look like it might actually pass the House.

During the current week, HJR 102 (proposed amendment) went through its second reading. It received a favorable vote of 97-44 with 9 votes of the 150 seats not placed. To move the amendment forward, it will need to pass with 100 votes, a two-thirds majority. A third vote was expected during the May 12 session when Representative Jeff Leach expected the last three or more votes to appear. Here is what he offered to the PlayUSA publication:

“I’m confident I will get there tomorrow,” adding “We are working hard.” He told House members, "Members, I’m going to try again tomorrow on the constitutional amendment. I’m hopeful and expectant that we can maybe get over 100 tomorrow."

It's important to note that there is no need for any of the current "nays" to be convinced to change their votes. Three votes coming in from the second reading no votes would get the job done.

A Look at HB 1942

As a reminder, HB 1942 (current sports betting legislation) already passed the House by a vote of 84-52 with 14 no votes. Unlike Constitutional amendments, standard bills only require a majority for passage.

Here is a look at the sports betting framework that is detailed in HB 1942:

• The Texas Lottery Commission will be pegged to act as the regulatory over sports betting
  
• The initial license fee would be set at $500K, good for three (3) years
  
• After the first three (3) years, a license fee of $100K per year would be charged
  
• Licenses would be restricted to eligible professional sports franchises, perhaps including NASCAR
  
• Betting on in-state college teams and eSports would be permitted
  
• In-game betting would have to run through "official league data"
  
• Operators would be subject to a 10% rate on gross sports betting revenue
  
• 2% of all tax revenue received by the state would be allocated to problem gambling and addiction initiatives
  

The Final Hurdle

Even if the Constitutional amendment passes the House, it still has to clear the Senate by a two-thirds vote. Then, HB 1942 would have to pass. There are serious doubts about whether either of these pieces of legislation will get passed in the current legislative session.

Here is what Lt. Gov. Dan Patrick told reporters: “We don’t have the votes for casinos. There are not enough votes for sports betting, and I don’t think that’s going to change.”

Clearly, there is still a lot of work that needs to be done before Texas residents will be legally wagering on sports. For now, things are moving along in the right direction.