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Texas State Representative Introduces Sports Betting Legalization Bill

By Rhian Hunt - Feb 23, 2021 at 3:25PM

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DraftKings, Penn, and others could benefit, but Lone Star legalization may face an uphill battle.

Texas is one of the large, high-population states that could represent a profit windfall for online sports betting companies if it ever legalizes this type of gambling. Several casino and gambling enterprises have acquired fantasy sports platforms with users in New York, Texas, Florida, and California, to position themselves for eventual legalization there. Bally's Corporation (BALY 0.62%) bought fantasy sports company Monkey Knife Fight and Caesars Entertainment (CZR) make a "strategic investment" with an option to acquire the SuperDraft platform late last month, in part for this reason. 

Today, Rep. Dan Huberty introduced a bill in the Texas legislature proposing "a constitutional amendment authorizing the legislature to legalize sports wagering in this state." The move is the latest development in efforts to bring legal sports betting to the Lone Star State, with a lobbyist last month telling Legal Sports Report "something is going to happen in Texas ... the governor is interested and the legislature is interested."

A Texas-shaped Texas road sign on a brick base, with a yucca growing in the background and distant mountains on the horizon.

Image source: Getty Images.

Texas legalization could provide other online sports betting companies like DraftKings (DKNG -1.92%) and Penn National Gaming (PENN -3.02%) with an outstanding opportunity to enter a major new gambling market. However, the attempt needs to navigate a political minefield before it has any chance of becoming law.

Lt. Gov. Dan Patrick noted two weeks ago in a radio interview sports betting is "not an issue that's going to see the light of day," Legal Sports Report said. The situation is complicated by an array of legalization opponents, ranging from church organizations concerned about moral issues to Oklahoma tribes worried about losing Texas gamblers' business. Patrick noted "there's so much infighting and competition here," though his prediction no sports gambling bill would be filed this session was proven wrong by Huberty's filing of HJR97 today.

 

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Stocks Mentioned

DraftKings Inc. Stock Quote
DraftKings Inc.
DKNG
$13.76 (-1.92%) $0.27
Penn National Gaming, Inc. Stock Quote
Penn National Gaming, Inc.
PENN
$30.83 (-3.02%) $0.96
Caesars Entertainment Corporation Stock Quote
Caesars Entertainment Corporation
CZR
Bally's Corporation Stock Quote
Bally's Corporation
BALY
$25.16 (0.62%) $0.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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