Texas Sports Betting Is Closer Than Ever — And the Cowboys Are All In

Texas has long been the white whale of the American sports betting industry. The Lone Star State is home to six major professional sports franchises, three of the largest cities in the country, and a sports-obsessed culture that sends billions of dollars annually to illegal offshore books and neighboring states with legal wagering. For years, every effort to change that has run into a wall at the Texas Legislature. But something is shifting in Austin, and the Dallas Cowboys and Houston Texans are leading the charge.

The Last Major Market Without Legal Betting

Texas stands alone among major American states as a sports betting holdout. New York, California, and Florida all have either operating markets or active legal frameworks. Texas, despite its size and economic weight, does not. Estimates suggest the state’s potential legal sports betting market would generate well over $1 billion in annual revenue and hundreds of millions in tax receipts — money that currently flows out of state entirely or into illegal operations.

That reality has not gone unnoticed. A University of Houston poll found that 60 percent of Texans support legalizing sports betting, including 59 percent of Republicans and 64 percent of Democrats. The public appetite is there. The obstacle has always been the legislature, specifically the Texas Senate under Lieutenant Governor Dan Patrick, who has consistently blocked sports betting measures from reaching a floor vote.

The Cowboys, Texans, and the Lobbying Blitz

The Texas Sports Betting Alliance — a coalition that includes the Dallas Cowboys, Houston Texans, Texas Rangers, Dallas Mavericks, and major operators like FanDuel and DraftKings — has been one of the most active and well-funded lobbying operations in Austin for several sessions running. The alliance has framed its push around a straightforward argument: let the voters decide. Because sports betting would require a constitutional amendment in Texas, any bill that clears the legislature would still go to voters on a statewide ballot.

Jerry Jones and the Cowboys organization have been especially visible advocates. The Cowboys are among the most valuable sports franchises on earth, and they understand that a legal betting market in Texas would mean naming rights deals, official partnerships, and a deeper engagement with their enormous fanbase. The Houston Texans, fresh off an exciting run in recent NFL postseasons, have also pushed hard. For these organizations, legalization is not just a political position — it is a business strategy with nine-figure revenue implications.

The 2025 legislative session brought a significant development: HJR 134, a joint resolution that would propose a constitutional amendment authorizing sports wagering, was filed in the House. The House passed a sports betting measure in 2023 with 101 votes, the furthest either chamber had gone toward loosening the state’s 169-year-old gambling restrictions. Getting to 100 votes again in the current session has proven harder, with a bloc of freshman Republican lawmakers signing a letter opposing any gambling expansion.

The Patrick Problem and the Path Forward

The structural obstacle has always been the Texas Senate. Dan Patrick has held the line against sports betting with remarkable consistency, and with Patrick locked in until January 2027, the Senate remains a near-impossible hurdle this session. Gambling advocates openly acknowledge they are playing a long game — building incremental wins in the House and waiting for a more sympathetic political environment in the upper chamber.

Governor Greg Abbott has offered the most encouraging signals from the executive branch, telling reporters he does not have a problem with sports betting legislation and would not stand in its way. That is not a full endorsement, but for a conservative governor in a state with deep religious-right opposition to gambling, it is notable support. Some stakeholders believe Abbott’s posture gives House members political cover to vote yes.

The math in the House is genuinely competitive. The 2023 vote passed with 101 votes, above the two-thirds threshold required for a constitutional amendment. This session, supporters are working to hold that coalition together despite the loss of several pro-gambling members replaced by freshman Republicans. The vote counting continues, and the outcome is far from settled.

What Legalization Would Mean for Texas Bettors

If Texas eventually joins the legal betting map — whether this session or in 2027 — the market would be among the most competitive and lucrative in the country. The state’s framework would almost certainly include mobile wagering tied to licensed operators, with sports franchises playing a central role as license holders. FanDuel, DraftKings, BetMGM, and Caesars would all be expected to enter the market aggressively, likely with substantial promotional budgets to establish market share.

For Texas bettors who currently drive across the border to Louisiana or New Mexico, or who use offshore books, legalization would bring consumer protections, regulated odds, and legitimate recourse if something goes wrong. The tax revenue generated — estimates range from $200 million to $500 million annually depending on the framework — would fund public programs and reduce the state’s dependence on other revenue sources.

Texas sports betting is not a done deal this session. The Patrick roadblock remains real, and the House math is tighter than it was two years ago. But the momentum is building, the business interests are enormous, and the public is ready. When Texas finally opens its books — and most industry observers believe it is a matter of when, not if — it will reshape the national sports betting landscape overnight.