Will California or Texas ever legalize sports betting?

According to the American Gaming Association, sports betting is legal in 38 states and the District of Columbia. Online sports betting is legal in 33 entities, while retail sports betting is available in 36 entities. However, neither California nor Texas have legalized sports betting in either form. These are the two biggest states in terms of population, containing over 20% of people in the United States. Some of the most iconic sports brands, like the San Francisco 49ers, Los Angeles Lakers, Dallas Cowboys and Texas Longhorns, call these states home. The projected revenue from legalized sports betting in California and Texas is $3-$4 billion annually for each state, so there's a strong financial incentive to make legislation happen.

Will sports fans in California and Texas ever be able to use the best sportsbooks to legally bet on their favorite teams? 

California sports betting outlook

California voters struck down Prop 26 and Prop 27 in November 2022. Governor Gavin Newsom spoke out against Prop 27, saying it would "hurt California's Indian Tribes, increase risks of underage gambling," and take revenue out of the state. There are more than 60 tribal casinos in the state. Prop 26 would have allowed sports betting to take place at the casinos. Prop 27 was intended to allow the casinos and a few established sportsbooks, such as FanDuel, DraftKings and others, to run online sports betting in California. Neither measure came close to passing, with Prop 26 receiving 33% support while Prop 27 received just 17% support from voters.

The biggest hurdle in California seems to be the influence of the tribes, who will have a big say in whether sports betting comes to the state. At the Global Gaming Expo, California Nations Indian Gaming Association Chairman James Siva said a sports betting measure could come back on the ballot as early as 2026, but 2028 was a more likely timeline. After reportedly spending more than $500 million looking to approve the 2022 referendums, the California tribes and sportsbooks likely need some time to develop a better plan to put in front of voters for the next election cycle. An initiative for the 2024 election cycle stalled out. Siva said the tribes will control the entry of new gaming in California, which includes sports betting. The tribes voted against sports betting initiatives in December 2023.

Texas sports betting outlook

The situation in Texas seems more promising for fans looking to wager on sports, although there's still some legal hurdles to overcome. For sports betting to become legal in Texas, there would need to be a constitutional amendment. That would require approval from the state House, Senate and voters.

The Texas House of Representatives approved a bill to legalize sports betting in 2023 but the proposed legislation died in the Texas Senate. Governor Greg Abbott has said he favors sports betting, and state senator Carol Alvarado has been pushing for sports betting initiatives since 2009, per KHOU. State representative Sam Harless filed a bill, HJR 134, which is the first step towards bringing the issue to voters. The bill is quite vague and seems to focus on retail sports betting, but doesn't have any explicit language banning online sports betting. If the bill moves through both parts of the state legislature, it could be on the ballot in November 2025. If approved by voters, sports betting could be a reality in Texas in 2026 or 2027 based on the timelines for other states which recently went down similar paths.

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