Texans are showcasing an affinity for sports betting despite the state being one of the remaining markets in America to not offer regulated online and retail wagering.
According to data provided by GeoComply, approximately 1.48 million Texans attempted to log in to a legal sportsbook in November, an uptick from 1.15 million attempts in October. Texas, one of the 11 remaining states where sports betting is not legalized, has a sports-crazed population of 29 million providing operators with potential strong revenue-generating opportunities. Licensed operators in the state could generate revenue from the estimated $6 billion wagered by Texans on illegal and unregulated sportsbooks in 2022.
“The data surrounding legalized sports betting in Texas underscores the immense potential for increased tax revenue, job creation, and economic benefits, plus important consumer protections for Texans from risky, unregulated black markets and the personal freedoms enjoyed by the vast majority of Americans,” said Texas Sports Betting Alliance spokesperson Lauren Clay. “We’re urging the Texas Legislature to take action in January to let Texans play.”
The Texas Legislature failed to pass a sports betting measure, House Bill 1942, last year. The bill, which proposed an online-only wagering model with up to 15 licensees and a 15% tax rate on gaming revenue, passed in the House but failed to progress in the Senate. A recent economic impact study projects online sports betting to generate roughly $363 million in direct tax revenue annually with over $2.6 billion in annual economic output.
According to a study from Eilers & Krejcik Gaming, 899 new jobs would be directly attributed to the legalization of online wagering in Texas once the market reaches maturity despite most states not creating more than a couple dozen positions. Given the abundance of tech infrastructure in Texas, the report alleges regulated sports betting could indirectly create 7,793 jobs with employees earning nearly $580 million in annual wages.
