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The Texas Legislature is once again considering legalizing sports betting, a move that some estimate could bring millions in tax revenue and economic benefits to the state. House Joint Resolution 134 (HJR 134), filed by State Rep. Sam Harless (R-Spring) is the latest attempt to amend the Texas Constitution to allow regulated sports wagering. However, this proposal differs in key ways from previous legislation introduced in the 88th Legislative Session (2023).
As Texas weighs the potential economic gains against concerns over gambling expansion, it is important to understand the mechanics of this legislation, what it aims to accomplish, and how it compares to earlier efforts.
The debate over sports betting is not happening in a vacuum. Texas has also seen multiple legislative attempts to expand gambling more broadly, including efforts to legalize casino resorts. During the 88th Legislative Session, proposals were introduced to bring casinos to major metropolitan areas, but these efforts stalled, largely due to opposition from conservative lawmakers. Meanwhile, past sports betting legislation faced similar hurdles, with previous proposals passing the Texas House but failing to gain traction in the Senate.
What Would HJR 134 Do?
If approved, HJR 134 would amend Section 47, Article III of the Texas Constitution, authorizing the state legislature to legalize and regulate sports betting. This constitutional change would allow sports wagering but only under strict limitations on who can participate. Under the proposed legislation, only certain entities would be eligible to operate sports betting, including professional sports teams that existed in Texas before January 1, 2025, sports organizations that previously hosted professional golf tournaments in the state, and Class 1 racetracks that were in operation before the same date. These organizations could either conduct sports betting themselves or designate a third party to do so on their behalf.
Unlike its predecessor, HJR 134 does not specify how the state would allocate tax revenue generated from sports betting. In previous legislative attempts, lawmakers sought to earmark a significant portion of the revenue for property tax relief, which was a major selling point for legalization efforts. The current version of the bill does not include any such requirement, leaving the distribution of funds up to future legislative action.
For HJR 134 to take effect, Texas voters would need to approve the amendment in a statewide referendum set for November 4, 2025. This means that even if the Legislature passes the bill, it will ultimately be up to the voters to decide whether Texas moves forward with legalized sports betting.
Arguments for Legalizing Sports Betting in Texas
Supporters of legalized sports betting argue that Texas is missing out on a major economic opportunity. Sports betting has become a multi-billion-dollar industry across the United States, with several neighboring states—including Louisiana and Arkansas—already benefiting from legal sports wagering. Proponents believe that allowing regulated sports betting in Texas would keep revenue within the state rather than allowing it to flow to casinos and sportsbooks in other jurisdictions.
Beyond the economic benefits, advocates also highlight the need for regulation. Currently, Texans who want to place sports bets often turn to offshore or illegal gambling operations, which provide little to no consumer protection. A legal and regulated market, they argue, would provide safeguards against fraud, ensure fair play, and offer responsible gambling measures to protect those at risk of addiction.
Additionally, legalizing sports betting could enhance engagement with professional sports teams across the state. Many leagues, including the NFL, NBA, and MLB, have embraced sports betting partnerships, recognizing the role that wagering plays in driving fan interaction. By legalizing sports betting, Texas could strengthen its standing as a premier destination for professional sports and entertainment.
Proponents also point to the broader push for gambling expansion in Texas. In previous sessions, bills aimed at legalizing casinos in major metropolitan areas, such as Houston, Dallas-Fort Worth, and San Antonio, gained some traction but ultimately failed due to opposition from conservative lawmakers. The push for sports betting may be seen as a stepping stone toward broader gambling expansion, which could bring in even more tax revenue and tourism dollars.
Arguments Against Legalizing Sports Betting in Texas
Opponents of the bill argue that expanding gambling in Texas would have significant social consequences, particularly for those vulnerable to gambling addiction. Studies have shown that gambling addiction can lead to financial ruin, family breakdowns, and an increase in crime. Many religious and conservative groups strongly oppose gambling expansion on moral grounds, believing that the costs to society outweigh any potential financial benefits.
Another concern is that the legislation lacks any dedicated tax revenue allocation. In past proposals, such as HJR 102, lawmakers sought to ensure that the vast majority of sports betting revenue would be used for property tax relief. HJR 134, however, does not require any specific use for the funds, leading critics to worry that the money could be funneled into general state spending rather than benefiting Texas taxpayers directly.
There is also skepticism about whether legalizing sports betting would truly deliver the promised economic benefits. Some argue that rather than generating substantial new revenue, sports betting could merely redistribute existing consumer spending, diverting money away from other industries without creating significant net economic gains. Others fear that the regulatory framework could become overly complex, leading to costly implementation and potential legal disputes over licensing.
How HJR 134 Differs from Previous Attempts
The latest proposal to legalize sports betting in Texas differs in several key ways from the previous version, HJR 102, which was introduced in an earlier legislative session. One of the most significant differences is that HJR 102 included a provision requiring at least 98% of net state tax revenue from sports betting to be dedicated to property tax relief. This was a major selling point for proponents who argued that sports betting could help ease Texans’ high property tax burden. HJR 134, by contrast, does not include any such requirement, leaving revenue distribution to the discretion of the Legislature.
Another key distinction lies in the eligibility criteria for sports betting licenses. HJR 102 included NASCAR racetracks that had been in operation before 2000 and had hosted major stock car racing events for at least 20 years. HJR 134, however, does not include these venues, instead limiting eligibility to professional sports teams, golf organizations, and horse racing tracks that existed before January 1, 2025.
It is worth noting that HJR 102 passed the Texas House of Representatives by a vote of 101 in favor to 42 in opposition, but it was never referred to a Texas Senate Committee, and as such, had its legislative prospects cut short.
Conclusion: What’s Next for Texas Sports Betting?
The road to legal sports betting in Texas remains uncertain. While HJR 134 represents a renewed push to bring regulated wagering to the state, it lacks some of the key provisions that made previous proposals more appealing to both lawmakers and the public. The absence of a dedicated revenue allocation for property tax relief could make the bill a harder sell, particularly among fiscal conservatives who supported earlier versions based on their potential to lower taxes.
At the same time, the narrower eligibility criteria for sports betting licenses and the later referendum date could make HJR 134 more palatable to legislators who are hesitant about a broader expansion of gambling. If the bill gains traction in the Legislature, the final decision will ultimately rest with Texas voters in the November 2025 election.
Whether Texas moves forward with legalized sports betting will depend on how lawmakers frame the debate in the coming months. Will they emphasize the economic benefits and potential for new revenue? Or will concerns about gambling addiction and the lack of a dedicated tax allocation derail the effort once again? With billions of dollars at stake, the fight over sports betting in Texas is far from over.
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