Online Gambling in Texas: An Expert Guide

The Kickapoo casino is the only one on solid legal ground. Texas has three federally recognized tribes, but the Kickapoo Tribe is the only one which is authorized to own and operate a casino under provisions of the Indian Gaming Regulatory Act of 1987-88.

Texas legalized pari-mutuel wagering in 1933 to raise funds for the state during the Great Depression. Governor James Allred banned pari-mutuels again in 1937, a ban which would last for 50 years. Beginning in 1960, notable gambler Virgil “Red” Berry began a long campaign to legalize pari-mutuel betting again, with four separate attempts (1962, 1968, 1974, 1978) defeated. The Baptist Church was a major opponent of such laws.

In 1987, the state legislature finally approved pari-mutuel wagers again. The Texas Racing Commission oversees four classes of licensing. Texas has three Class 1 horse tracks: Lone Star Park in Grand Prairie, Sam Houston Race Park in Houston, and Retama Park in Selma. The idea was to place one Class I track near the state’s three biggest population centers: Dallas, Houston, and San Antonio.

Pari-mutuel gamblers must go to a race track to enjoy OTB gaming.

Most Native Texans remember childhood trips to local VFW for its charity bingo nights. 226 of 254 counties in Texas have legalized charitable bingo.

As of 2018, the state had 1,012 charitable bingo organizations. They awarded $622 million in prizes that year. The biggest legal prize amount of $750, so bingo gaming is widespread and popular.

If you collect a rake, then your game is illegal. Several poker clubs have been raided in the past few years. Private poker games among friends seldom would be harassed.

Social casinos allow Texas online players to enjoy poker or casino games at Zynga, Double Down, Big Fish, or Slotomania, but they cannot accept rewards for play. MyVegas would be illegal in Texas.

In the past three years, law enforcement in the Dallas and Houston areas try to shut down card rooms. Often, the poker clubs devise rules and policies to work around a Texas ban on poker.

It is illegal to charge a rake on organized poker. The clubs use alternate methods such as “seat licenses” and large up-front entry fees. One charged no fee at the door, but required customers to pay large fees on food and drink. Depending on the opinion of the local sheriff’s department, these policies can be challenged.

Such machines are often in the back of the store near the cold drinks or the restrooms.

Eight-liners are legal (under the “Fuzzy Animal Rule” of 1993) only if they do not pay out in cash. Fifteen years ago, a UT professor estimated that Eight-Liners have $2 billion in turnover every year, so they are a major industry.

An 8-liner looks and acts much like a slot machine. The prizes have to be worth less than $5. The payouts tend to be grocery items, gas refills, scratch-offs, or lottery tickets. Despite those rules, Texas law enforcement claim that Eight-Liner businesses that pay out in cash are “universal”. Local law enforcement polices 8-liners and raids happen several times a year in the towns of East Texas and South Texas.

Owners of businesses with 8-Liners have been sent to prison for illegal payouts (see: Operation: Bishop), while local sheriffs have been prosecuted for taking bribes to look the other way.

Among the Spanish speaking population of Texas, Eight-Liners are known as “maquinadas” (machines).

Casino cruises have existed in Texas in the past, while others might in the future. Texas port cities like Houston, Galveston, and Corpus Christie are the likeliest places to find such a business.