Online Gambling in Texas: an Expert Guide

Texans can gamble online for real money without fear of prosecution. While Texas has restrictive gambling laws like most southern states, individual online bettors are not fined or prosecuted. Many Texas gamblers play at offshore online casinos, poker rooms, and sportsbooks. Launching your own online betting site would be illegal, but Texas players have many safe and legal play options.

This guide to Texas online gambling features the set laws and the latest gaming bills that Texans debate. It includes an FAQ section, as well as a timeline of Texas gambling laws. We also provide a list of the brick-and-mortar gaming venues in Texas, as well as honest reviews of the safest and best online casinos for Texans.

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Texas Gambling Laws
What is Legal in Texas?
Online Poker Laws
Sports Betting Legality
Casinos in Texas
Texas Poker Clubs
Texas Track Betting
Charitable Gaming
Texas Bingo
Texas Online Gambling FAQ
Timeline of Texas Online Gambling Laws
Recent Updates
Sources

Texas State Online Gambling Laws

Of course, what’s illegal for Indian tribes and small business owners is perfectly justified for the state government, so the Texas State Lottery is a major factor in the Lone Star State. Charitable bingo halls are everywhere, while an idiosyncratic form of electronic gambling machine called an Eight-Liner or maquinada exists.

Texas Attorney General Ken Paxton is an opponent of sports betting and fantasy sports in the state.

Texas Casino Laws

Despite that, Texans has only two legal land-based casinos: The Kickapoo Lucky Eagle Casino and Naskila Gaming. A third tribal casino – Speaking Rock Entertainment — seeks federal protection, but appears to be losing the legal battle. Otherwise, a ton of poker clubs exist, but state and local officials dispute the legality of those Texas gaming venues.

Several horse tracks operate in Texas, while pari-mutuel betting is legal. It would be a sin to ban horse betting in Texas. Meanwhile, dog racing is legal in Texas, but not lucrative. Only one of the four greyhound parks have live races anymore, while the rest serve as OTBs with simulcasting. Though racebook betting is legal, sportsbook betting is another matter. They say football is religion in Texas, which makes gambling on football something akin to heresy. When a legislator introduced a fantasy sports legalization bill, Texas lawmakers voted it down. That’s traditional fantasy football — not DFS gaming through DraftKings and FanDuel.

Laws That Pertain to Texas Gambling

If Texas changed its laws to reflect other US gambling laws in states like Nevada or New Jersey, it would be one of the most lucrative state-level industries in the country. That isn’t likely to happen anytime soon. Texans undoubtedly love to gamble. Lake Charles and Shreveport/Bossier City in Louisiana exist because of gaming commuters from Houston and Dallas, respectively. WinStar World Casino and Choctaw Casino in Oklahoma are some of the biggest casinos in the world because of Dallas visitors.

The Texas Constitution’s statutes on gambling makes specific mentions of cards, dice, ball games, and other gambling devices (wheels). It also specifically mentions a ban on sports betting or other games. More remarkable, political prop bets are banned with a specific mention in the gaming laws.

Section 47.01(1): Definition of a Bet

“Bet” means an agreement to win or lose something of value solely or partially by chance.

The definition of a bet is straightforward. If you win or lose something of value, it is a bet. If the outcome is even partially determined by chance, it’s considered a bet.

Section 47.02: Definition of Gambling

(a) A person commits an offense if he:

(1) makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest;

(2) makes a bet on the result of any political nomination, appointment, or election or on the degree of success of any nominee, appointee, or candidate; or

(3) plays and bets for money or other thing of value at any game played with cards, dice, balls, or any other gambling device.

Political proposition bets must have been a factor at some time in Texas’ past, because Texas gambling laws ban bets on “any political nomination, appointment, or election”. The statute further defines the law by mentioning a “nominee, appointee, or candidate”.

Section 47.05: What Constitutes Communicating Gambling Information?

(a) A person commits an offense if, with the intent to further gambling, he knowingly communicates information as to bets, betting odds, or changes in betting odds or he knowingly provides, installs, or maintains equipment for the transmission or receipt of such information.

Online gambling is specifically banned in Texas law. A great deal of language discusses someone who “communicates information” about bets and betting odds. This seems to target online sports betting information, such as providing betting lines.

Texas Gambling Laws

Type of Gambling – Offered/Licensed? – Notes & Restrictions

• Online Gambling – No – No iGaming bills ever submitted.
• Land-Based Casinos – Yes – A couple of controversial tribal casinos.
• Charitable Gaming – Yes – Bingo halls are popular.
• Lottery Betting – Yes – State Lottery (1991), Powerball (2010), Mega Millions (2002)
• Minimum Gambling Age – 18 for lottery and bingo. Less than 18 for bingo if accompanied by parent. 21 for pari-mutuels and casinos.

Does Texas have land-based casinos?

Texas has two land-based casinos: Kickapoo Lucky Eagle Casino Hotel om Eagle Pass and Naskila Entertainment in Livingston. 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.

Kickapoo Lucky Eagle Casino is the only Texas land-based casino with official legal status.

Naskila Entertainment is on shakier ground. The Naskila gaming complex is owned by the Alabama-Coushatta Tribe, which has been fighting with local and state authorities for over a decade to win recognition. The tribe attempted to open a casino in 2002, but state authorities shut it down. Fourteen years later, it opened Naskila Entertainment, but state officials immediately filed a lawsuit to shut it down.

Since 2016, the Alabama-Coushatta Tribe has been locked in a battle with the state of Texas. In 2018, Magistrate Keith Giblin ruled that the tribe could not operate its casino. When its federally recognized lands were restored in 1987, tribal officials agreed not to open a casino on the reservation. Giblin wrote in his opinion, “Until Congress can be persuaded to amend or repeal the Restoration Act, the court is obligated to abide by the plain language of the statute and the tribe must conform to the gaming laws and regulations of Texas as provided by the Restoration Act.”

The tribe vowed to continue the legal battle in the appellate court, so Naskila Entertainment remains in operation pending the appeals process.

Casinos

Does Texas have poker clubs?

Texas has over a dozen poker clubs operating at any given time, but these also have a shaky legal status. In the past 3 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.

Card Rooms

Does Texas have casino cruises?

At least one casino cruise business exists in Texas. In Galveston, the Jacks or Better Casinos sets sail most days in good weather. Two cruises occur most days. For instance, a Wednesday schedule involves a cruise from 11:00am to 5:30pm and from 6:30pm to 12:00am. Those booking passage should know that the ship must navigate to the international boundary 3 miles out to sea, where gambling then becomes legal.

Other 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. For now, you’ll need to go to Galveston.

Casino Cruise

Does Texas still have Eight-Liners?

Yes. Eight-liners are gaming machines found in gas stations and convenience stores. Such machines are often in the back of the store near the cold drinks or the restrooms. They 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).

Does Texas Have Any Legal Betting Tracks/Shops?

Yes. Texas has four horse tracks and three dog tracks spread around the state. Grand Prairie is between Dallas and Fort Worth (adjacent to Arlington). Fredericksburg is 1-hour and 30-minutes west of Austin and 1-hour and 10-minutes north of San Antonio. Selma is on the outskirts of San Antonio. La Marque is near Galveston. Harlingen is near Brownsville on the border with Mexico (and the Gulf of Mexico).

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.

Dog Track Racing

Dog racing is legal in Texas, but not lucrative. Only one of the four greyhound parks have live races anymore, while the rest serve as OTBs with simulcasting.

Horse Track Racing

Several horse tracks operate in Texas, while pari-mutuel betting is legal. It would be a sin to ban horse betting in Texas. Though racebook betting is legal, sportsbook betting is another matter.

Does Texas allow off-track betting?

No. While the seven race tracks have simulcasting and off-track betting, no off-track betting facilities (with no racing) exist in the state. Pari-mutuel gamblers must go to a race track to enjoy OTB gaming.

Does Texas allow charitable gambling?

Yes. Texas is a hotbed of charitable bingo. As a native Texan, I can remember my grandmother taking me to the local VFW for its charity bingo nights. 226 of 254 counties in Texas have legalized charitable bingo. As of 2011, the state had 1,227 charitable bingo organizations. They awarded $533 million in prizes that year. The biggest legal prize amount of $750, so bingo gaming is widespread and popular.

Bingo Halls