Texas Governor has no objection to allow online sports betting

In an exclusive interview for the Texas Take Podcast, Abbott said he has no objection to the Texas Legislature passing a law to join 39 other states that have legalized online sports betting. 

“I don’t have a problem with online sports betting,” Abbott said in an interview at the governor’s mansion. “The reality is that I’d be shocked if there were not some Texans that do it already.”

A coalition of major sports franchises in the state, including the Dallas Cowboys, the Houston Astros and the San Antonio Spurs, have teamed up with sports gaming companies like BetMGM, DraftKings and FanDuel to push for legalized betting through the Texas Sports Betting Alliance. They’ve hired more than a dozen lobbyists and tapped big names in politics and sports, such as former Gov. Rick Perry and Houston Rockets owner Tilman Fertitta, to help make their pitch.

"We appreciate the governor's comments because this echoes what we're hearing from Texans," said Jeremy Kudon, president of the Sports Betting Alliance. "They want the opportunity to vote on legalizing sports betting and putting in place a strong, regulatory framework that protects consumers and boosts revenue in the state." 

Fertitta — whose business holdings include the Golden Nugget Hotels & Casinos – publicly backed a bill in the Legislature in 2023 that would have allowed sports betting in Texas.

"Sports betting is a very popular form of entertainment. Sports fans enjoy placing bets on their favorite sports because it brings them closer to the team and puts them in the game," Fertitta said then.

In 2022, DraftKings acquired Golden Nugget Online Gaming in a deal that made Fertitta a member of DraftKings’ board of directors.

Sports betting sites have exploded since 2018, when the U.S. Supreme Court struck down a 1992 federal law that had prohibited most states from allowing it. In November, Missouri voters approved a ballot initiative that made them the 39th state to legalize sports gambling.

Texas has been one of the holdouts, partly because the Texas Constitution prohibits the expansion of gambling in Texas. In order to allow sports betting or expand casinos in Texas, the Legislature would need to amend the state constitution by getting a two-thirds vote of both chambers and then get a vote of the people.

In 2023, the issue got as far as it ever has. A bill by State Rep. Jeff Leach, R-Plano, cleared the House by an 82-51 vote but was never picked up by the Senate, where the biggest hurdles remain.

State Sen. Lois Kolkhorst, R-Brenham, had proposed a similar bill in 2023, but it never gained much momentum. State Sen. Carol Alvarado, D-Houston, has reintroduced another bill this year that would allow an expansion of casinos in Texas, as well as allow sports betting.

Challenges ahead

But that bill has an uphill climb. Lt. Gov. Dan Patrick, a Houston Republican who runs the Texas Senate, has repeatedly said he doesn’t have enough Republicans in the Senate who support the idea. He said he opposes bringing the issue to a vote unless a majority of Republicans in the Senate are prepared to back the bill. He has said that voters in Texas elected a majority of Republicans in the Senate, and he’s not going to allow a Democrat-led bill to pass over the opposition of most of the Republicans in the Senate.

The Republican Party of Texas has also long opposed expanded gambling in their official platform. Violating that platform could result in public censures and the party campaigning against members who vote for casinos.

Influential conservative groups like the Texas Public Policy Foundation in Austin have published reports warning about the dangers of expanding gambling in the state. While allowing casinos and sports betting can result in more tax revenue to fund the government, a policy brief released last month by TPPF warned it would lead to higher rates of gambling addiction.

Dave Forman, head of research for the American Gaming Association, pushed back on those concerns, arguing that, problem gambling continues to only impact a small fraction of the population despite the growth in gaming options in recent decades.

Giles Kibbe, executive vice president and general counsel of the Houston Astros, said illegal sports betting is pervasive in Texas and should be regulated.

"We're glad to hear Gov. Abbott's views regarding sports betting," Kibbe said.

In 2022, Abbott first began opening the door to expanded gambling in Texas. During his reelection campaign, he said he was willing to discuss allowing destination resort-style casinos in the state.

His advocacy came just as major gambling interests were helping support his campaign for reelection. The late Las Vegas gambling tycoon Sheldon Adelson and his wife Miriam combined to give Abbott $1.5 million in donations for his campaign in 2022, including a $1 million check from Miriam Adelson just two months before Abbott’s victory.

In 2023, Miriam Adelson became the majority owner of the Dallas Mavericks, which is part of the Texas Sports Betting Alliance.

Fertitta, a Galveston native, has also been one of Abbott’s biggest donors since his first campaign for governor. Fertitta has given more than $2.1 million to Abbott since 2014 for his campaigns, which includes allowing him use of his personal plane to fly around the state to campaign.

Fertitta has also been a major donor to other key Texas lawmakers. He’s donated over $1 million to Patrick’s past campaigns, including a $100,000 donation last June.

Still, it hasn't been enough to pass a bill yet on either expanded casinos or sports betting. Despite public polls showing general support for both. A University of Houston poll released on Tuesday showed 60% of Texans support legalizing online sports betting. And 73% supported legalizing and expanding casinos in Texas.