Legal online sports betting in Texas could indirectly generate nearly 8,000 jobs in the state by the time the market were to hit maturity, according to a new study from Eilers & Krejcik Gaming (EKG).
EKG’s report, Legal Online Sports Betting In Texas: Revenue Forecast And Economic Impact Analysis, provided updated projections for a potential regulated online betting market in the Lone Star State.
Among its hypothetical projections was that by the time a Texas market hits maturity, defined in the report as reaching three-and-a-half years old, 899 new jobs would be directly attributable to online wagering. EKG notes that, since much of the nation’s tech infrastructure is located in Texas, there could be a huge indirect job boom that creates 7,693 employment opportunities.
That would generate more than $1 billion in gross state product and a $2.6 billion betting-related boost in annual economic output. The study also estimates that $24.3 million in non-gaming revenue would be generated by maturity, in addition to $363 million in direct gaming tax revenue by Year 5.
Could Texas be a future major sportsbook’s HQ?
EKG also poses the hypothetical scenario of a major sports betting operator choosing to establish a head office or large regional office in the state.
The firm estimates that an office supporting 650 to 1,000 direct employees would generate between $88 million and $136 million in direct income per year, while the all-in total returns to the state of an operator the size of FanDuel or DraftKings opening a major office could be as high as 8,500 jobs and $643 million in income per year.
Eilers and Krejcik used a combination of methods to get these projection figures, including calculating the difference between its market forecast and its estimates of revenue diverted from other in-state spending, as well as underlying market data from IMPLAN’s economic impact model.
EKG notes that its Texas report was commissioned by the Sports Betting Alliance.
EKG boosts Texas revenue projections by 43%
Overall, EKG has raised its projections for a hypothetical Texas market’s revenue generation by 43% since its last assessment of the state last year. That increase is based largely on what the firm called “very strong, ongoing growth” in underlying GGR-per-adult data in other states.
EKG does add the caveat that its assumptions about online sports betting ramp-up in numerous states are derived from very limited data.
The report suggests that legal online sports betting in Texas could generate $24 billion in annual handle and $2.4 billion in yearly GGR in the very first year. Those could rise to over $30 billion and nearly $3.5 billion, respectively, by the end of Year 3, “driven by early, heavy investment from major online sports betting operators.”
That would make Texas easily the largest digital wagering market by its maturity.
These projections, which EKG calls a “conservative” estimate, are based on numerous market assumptions as well as provisions set out in HB 1942, which passed in the House but stalled in the Senate in 2023. Factors considered or assumed include online-only betting, weighted comparisons with similar markets in other states, a 15% tax rate, up to 15 licensees, “aggressive” promotional spending by operators at the outset of legalization and no restrictions on major bet types or markets.
Ultimately, EKG acknowledges that the political climate suggests that online sports betting “remains a longshot for legalization in 2025.”
