The Texas Legislature is once again reviewing proposals to legalise sports betting and casino gaming, continuing a long-running debate on expanding gambling in the state.
Two key measures — House Joint Resolution 137 (HJR 137) and House Joint Resolution 134 (HJR 134) — aim to amend the Texas Constitution to permit and regulate these activities.
While both seek to introduce legal gambling, their scope differs; HJR 137 includes both casino gaming and sports betting, whereas HJR 134 is limited to sports betting only.
If approved by lawmakers, these proposals would be placed on the ballot for a statewide constitutional amendment referendum on 3 November 2025, giving Texan voters the final say on the issue.
HJR 134: A focus on sports betting
HJR 134, introduced by Rep. Sam Harless, seeks to amend Section 47, Article III of the Texas Constitution to allow and regulate sports betting.
This proposal differs from previous sports wagering bills by imposing strict limitations on which entities would be eligible to operate within the state.
Under HJR 134, the Texas Legislature would have the authority to legalise sports betting within a regulated framework, but only specific organisations could obtain a licence.
The measure restricts eligibility to professional sports teams that were established in Texas before 1 January 2025.
In addition, it also covers sports organisations that have hosted professional golf tournaments in the state, and Class 1 racetracks that were in operation before the same cutoff date.
These organisations would have the option to run sports betting operations themselves or partner with an approved third-party provider.
Unlike earlier proposals, HJR 134 does not outline a specific plan for allocating tax revenue generated from sports betting.
Previous bills attempted to dedicate these funds toward property tax relief, which was a major argument in favour of legalisation.
However, HJR 134 does not include such provisions, leaving the decision on revenue distribution to future legislative action.
HJR 137: Expanding gambling to include casinos
While HJR 134 is focused exclusively on sports betting, HJR 137, introduced by Rep. Charlie Geren, takes a broader approach by seeking to legalise both casino gaming and sports wagering.
The proposal includes additional regulatory measures and tax structures that would apply to both forms of gambling.
HJR 137 would authorise the legalisation of casino gaming and sports betting under a state-regulated framework.
The resolution places strict limitations on casino locations, allowing a maximum of ten licensed facilities across Texas, with each licence initially valid for at least 40 years.
This restriction is intended to control the expansion of gambling within the state while allowing select operators to establish regulated casino resorts.
To generate state revenue, HJR 137 imposes a tax of up to 15% on revenue from casino gaming and sports wagering.
Additionally, it prevents the imposition of any extra state or local taxes on gambling earnings beyond standard business taxes, ensuring that operators are not subjected to excessive financial burdens.
Another critical component of the resolution is its provision for tribal-state gaming agreements.
HJR 137 mandates that Texas negotiates in good faith with federally recognised Indian tribes to allow Class III gaming — such as casino-style gambling — on tribal lands.
This requirement aligns with federal laws under the Indian Gaming Regulatory Act, ensuring that tribal nations have the opportunity to participate in the state’s gaming industry.
Past efforts to legalise gambling in Texas: Why they failed
Texas has a long history of failed attempts to expand gambling. Despite increasing support from business leaders, professional sports teams, and gaming operators, legislative proposals have repeatedly stalled.
One of the main obstacles is opposition from conservative lawmakers and religious groups. Many legislators and religious organisations argue that gambling expansion could lead to addiction, crime, and financial harm to vulnerable populations.
Their strong influence in Texas politics has played a major role in preventing significant changes to gambling laws.
Another challenge comes from political roadblocks in the Senate. While the Texas House has shown more willingness to consider sports betting and casino proposals, these measures have consistently failed to gain traction in the Senate.
Lieutenant Governor Dan Patrick, who presides over the Senate, has been a vocal opponent of gambling expansion and has played a significant role in blocking past efforts.
Even within pro-gambling factions, disagreements exist over the best approach to legalisation. Some lawmakers and lobbyists advocate for sports betting-only legislation, arguing that it is a less controversial first step.
Others push for a broader expansion that includes full-scale casino gaming. This division has weakened past efforts by preventing a unified push for reform.
Texas’ limited gambling history also presents a significant hurdle. Unlike states with longstanding gambling industries, Texas has maintained a strict anti-gambling stance for decades.
The only legal gaming options in the state are the Texas Lottery, charitable bingo, and limited pari-mutuel horse and greyhound racing.
The absence of a well-established gambling culture has made legislative changes more difficult, as there is no strong precedent or public expectation for legalised gaming beyond these limited options.
The economic argument for legalisation
Supporters of gambling expansion argue that legalising sports betting and casinos would generate substantial economic benefits for Texas. One of the most significant advantages is the potential for increased tax revenue.
With a 15% tax on gambling revenue, proponents estimate that the state could receive millions in new annual revenue.
Past legislative efforts have attempted to earmark these funds for property tax relief, infrastructure improvements, or education, making gambling legalisation an attractive financial opportunity for the state government.
Another key economic benefit is job creation and tourism growth. Legalising casinos could lead to the development of large-scale, resort-style gaming establishments, which would create thousands of new jobs.
These developments could boost local economies, particularly in major metropolitan areas like Dallas, Houston, and San Antonio, by attracting visitors who would spend money not only on gambling but also on hotels, restaurants, and entertainment.
Legalisation could also help eliminate the illegal gambling market. Without legalised options, many Texans currently engage in unregulated or out-of-state sports betting, sending revenue to neighbouring states or illicit operations.
What happens next?
Both HJR 134 and HJR 137 face an uphill battle in the Legislature, where past gambling bills have failed. If either measure passes, Texas voters will have the final say in November 2025.
The debate over gambling legalisation is expected to intensify, with advocates pushing the economic benefits and opponents warning of social consequences.
Governor Greg Abbott recently expressed his support for legalised sports betting. This might be the additional support needed to get at least one of the bills closer to the finish line. However, neither currently has good odds to make it all the way across.
