Why Is Gambling Illegal In Texas

Texas Sports Betting. Sports betting is illegal in Texas and there have been no major pushes to change that since the Supreme Court overturned the federal sports betting prohibition in 2018. There are some lawmakers in Texas who would like to legalize sports betting, but they face an uphill battle amid resistance from their anti-gambling colleagues and the lack of an established gambling. In the United States, gambling is restricted almost everywhere, except in Las Vegas and in Atlantic City, New Jersey. If you do not know this and unwittingly participated in a gambling scheme that turned out to be illegal, you can still be charged with a gambling crime and may be slapped with significant penalties that may result in some serious repercussions.

1. Why Is Gambling Illegal In Texas
2. Why Is Betting Illegal In Texas
3. Why Is Gambling Illegal In Texas Right Now
4. Why Is Gambling Illegal In Texas Illegal

With 27.5 million residents, Texas is America’s second most-populous state.
This means that the Lone Star State could make a fortune through gambling taxes.

But Texas doesn’t take advantage of this opportunity because they have
limited casino gaming and live poker.

Not surprisingly, Texas doesn’t have legal internet gambling either.

But offshore gaming sites still target their large market.

Online Gambling and Texas Law

Texas doesn’t address internet gambling in their criminal code. Furthermore,
they don’t mention the words “computer,” “internet,” or “online.”

But this doesn’t mean that internet gambling is legal here. In fact, the
state’s broad laws make it illegal for offshore gaming sites to operate within
their borders.

We’ll cover this and other important aspects of the state’s online gaming
stance below.

Is Online Gambling Legal in Texas?

Let’s begin with code 47.03 of the criminal code, which states that a person
“commits an offense if he intentionally or knowingly does any of the following
acts:”

• Earns profits from a “gambling place.”
• Bookmaking.
• Earns profits from being “a custodian of anything of value bet or offered to be bet.”
• “Sells chances” on any game, contest, or political nomination.
• Sets up and runs a lottery.

The first-time charge for any of these offenses is a Class A misdemeanor,
which is a light punishment for illegal gambling operators.

Nevertheless, it’s clear that Texas doesn’t allow any form of gaming beyond
what they’ve specifically approved. Internet gambling doesn’t fall under this
umbrella, therefore it’s technically illegal in the state.

Why do Gambling Sites Operate in Texas?

As just discussed, offshore gaming sites are not considered legal
in the Lone Star State, but they continue to
operate here for three main reasons:

1. Texas doesn’t have a regulated iGaming market.
2. Texas hasn’t taken legal action against offshore sites.
3. The Texas Constitution doesn’t specifically make internet gambling illegal.

These three conditions are present in most states, which is why most of them
are served by offshore operators.

Even Louisiana, South Dakota, and Washington – which explicitly outlaw online
gambling – have problems with offshore sites.

This means that the threat of legal action is the biggest condition to
whether internet gambling sites serve a state.

Texas has never pursued legal action against offshore sites, and the status
quo is likely to continue for a while.

Will I be Arrested for Gambling Online in Texas?

It’s possible, but there’s almost no chance that you’ll be arrested.

Code 47.02 states a gambling offense occurs if somebody:

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

Anybody who commits one of these offenses is subject to a Class C
misdemeanor. Exceptions are made for those who engage in social gambling and /
or are involved in a skill-based contest where everybody has the same chance.

Perhaps an argument can be made that online poker falls into this category
because it’s skill-based. But by and large, internet gambling is illegal in the
Lone Star State.

Nevertheless, they haven’t arrested anybody for playing online casino games
or placing sports bets. This gives us confidence that you won’t be arrested for
the activity.

Furthermore, the U.S. Department of Justice issued a 2011 opinion that the
Wire Act – a
federal ban on certain types of gambling – only applies to sports betting.

Are Offshore Gaming Sites Safe?

This depends upon the specific site you’re dealing with. But for the most
part, offshore gambling sites are safe.

The risk comes when considering that offshore sites are based outside of the
U.S. This means that they’re neither licensed in America nor directly subject to
U.S. laws.

The matter can be scarier given that a small percentage of nefarious
operators have closed without repaying player deposits..

But here’s the thing: most offshore operators realize the value in repeat
business.

If they don’t have good customer service or process cashouts in a timely
manner, they’ll receive less repeat players. Long story short, you can have
confidence that most internet gambling sites will serve you well.

How Do I Pick the Best Gaming Sites?

To choose safe gaming sites, you should read reviews of any prospective site.
The more reviews you read, the better you’ll be able to make an informed
deposit.

Another thing you should do is visit the site directly and look for certain
aspects. Reviews are great, but it’s even more effective if you do research
yourself.

Here are some key points that you want to look for:

• Longevity and Reputation –

  The longer a site is in business, the more likely it is that they properly serve
  players. And when you combine this with a good reputation (via reviews), you
  have a winning site.

• Game Variety –

  Everybody
  loves a nice variety of games. This is why you want to visit a site and see if
  they have the games / sports lines you want.

• Banking Options –

  If real
  money iGaming is your goal, then you need to make sure that there’s a deposit
  option you can use.

• Customer Support –

  This is
  a key point covered in reviews. You can also visit directly and live-chat with
  customer service to see how friendly and knowledgeable they are.

• Bonuses & Promotions –

  It’s
  always exciting to earn cash on the side of your play. Check out the welcome
  bonus and promotions at any site you’re interested in.

• Bonus Terms & Conditions –

  Click the terms and conditions underneath the welcome bonus to see what wagering
  requirements must be met. The industry standard for online casino bonuses is 40x
  rollover (or 20x bonus + deposit).

Also On This Page

More Gambling Laws in Texas

• Casino Games (Class II Legal)
• Sports Betting (Illegal)
• Poker (Legal)
• Racing Betting (Legal)
• Lottery (Legal)
• Bingo (Legal)
• Charitable Gambling (Legal)
• Social Gambling (Legal)

Casinos: Legal

Texas only has two casinos spread throughout its vast 269,596 square miles.
This includes the Kickapoo Lucky Eagle Casino and Aransas Queen cruise ship.

The Kickapoo Lucky Eagle is located along the Mexican border and offers Class
II gaming. Class II machines are similar to regular slot machines, except that
results are determined by historic horse races or electronic bingo cards
(instead of random number generators).

The Aransas Queen is a huge yacht that began sailing out of Corpus Christi in
2015. They’re only allowed to offer gaming when in international waters.

It remains to be seen how successful the Aransas Queen will be. Texas has had
multiple gambling cruises that have failed over the years.

This includes the Le Mistral, the original gambling cruise ship that set sail
from Galveston in 1988; it went bankrupt in 1994.

Several other Texas gambling cruises have either gone bankrupt or moved to
different states seeking more profitability.

Charitable Gambling: Legal

Under the Charitable Raffle Enabling Act, Texas allows licensed charities to
offer bingo and raffles. Unfortunately, this means that casino nights and Texas
hold’em tournaments are out of the question.

Lottery: Legal

Legalized in 1992, the Texas Lottery sells a wide range of instant and
drawing games. Available games include: All or Nothing, Cash Five, Daily 4, Pick
3, Mega Millions, Powerball, Texas Triple Chance, and Texas Two Step.

Poker: Legal

The Kickapoo Lucky Eagle Casino has a small poker room. Other than this, the
only ways to play poker in Texas include offshore gaming sites and social games.

Racing: Legal

Texas is one of the few states that offers active horse and dog racing
tracks. They currently have four tracks operating in the state.

Social Gambling: Legal

Code 47.02 of the Texas criminal code includes exemptions for social gaming.
These include the following:

1 – “The actor engaged in gambling in a private place.”

2 – “No person received any economic benefit other than personal winnings.”

3 – “Except for the advantage of skill or luck, the risks of losing and the
chances of winning were the same for all participants.”

As long as the host isn’t profiting from your social gambling function
through a house edge, food, or drinks, the game should be fine. Also, make sure
that no illegal firearms or drugs are on the premises.

Gambling Venues in Texas

As discussed before, Texas only has two casinos – the Aransas Queen cruise and
Kickapoo Lucky Eagle.

Lucky Eagle is by far the largest of these casinos, sporting over 3,300 Class
II gaming machines. But it’s also in the remote Lucky Pass area on the Mexican
border, making it difficult for many Texans to visit.

Aransas Queen has over 200 gaming machines and some table games. This mega
yacht must reach international waters before gambling commences.

In addition to two casinos, Texas also offers Class II pull tab machines at
parlors in the Dallas, Houston, and San Antonio areas.

These are electronic pull tab machines that look and play like slot machines.
One stipulation to these games is that individual payouts can’t be any larger
than $5.

Lucky Eagle Casino & Hotel

794 Lucky Eagle Drive

Eagle Pass, TX 78852

History of Gambling in Texas

Dating back to when U.S. settlers arrived in Mexican Texas, the territory was
filled with brothels, saloons, and gambling halls. This continued long after
Texas became a state in 1845.

Professional gamblers like “Doc” Holliday and “Lottie Deno” Thompkins roamed
the plains of Texas in the mid and late 1800s.

The Lone Star State finally began cracking down on vices in the early 1900s.
Most gambling halls were banned and closed by 1917.

Texas didn’t officially legalize any gambling activities until 1933, when
they approved pari-mutuel betting. Just four years later, the state voted to
shut down pari-mutuel wagering.

The see sawing continued in 1987, when Texas legalized pari-mutuel gambling
for good.

The state also has a strange history with tribal casinos. With help from the
federal government, they shut down the Tigua Tribe’s Speaking Rock casino in
2002.

But the Kickapoo Casino has been in operation ever since 1996 because they
offer Class II gaming. Governor George W. Bush questioned the validity of this
casino, but the Kickapoo won a pre-emptive lawsuit against the state.

Texas also legalized casino cruise ships in 1988, but ships were originally
forced to visit a foreign port of call (Mexican villages) before docking in
Texas. This only lasted a year before Galveston officials got the port of call
portion repealed.

Despite their limited gambling, Texas has had activity on the iGaming
legislative front.

U.S. Rep. Joe Barton has introduced federal online poker legislation twice.
Texas also had two other iGaming bills introduced in 2013, but none of these
efforts came to fruition.

Texas Gambling FAQs

With no specific laws addressing internet gambling and a host of available
offshore sites, Texas iGaming is confusing to many gamblers.

Here are some FAQs we’ve received on the Lone Star State that can help clear
up the matter.

Are Daily Fantasy Sports Legal in Texas?

According to Texas Attorney General Ken Paxton, daily fantasy sports (DFS)
aren’t legal. Here’s an excerpt from his
January
2016 letter:

“Because the outcomes of games in daily fantasy sports leagues depends
partially on chance, an individual’s payment of a fee to participate in such
activities is a bet. Accordingly, a court would likely determine that
participation in daily fantasy sports is illegal gambling.”

DraftKings, the industry’s largest site, has refused to take this ruling
lying down. They launched a lawsuit against Paxton and continue to operate in
the Lone Star State; FanDuel, however, exited Texas.

State Rep. Richard Raymond introduced legislation that would’ve classified
DFS as a skill based activity, but House Bill 1457 failed to gain any serious
attention.

When Will Texas Legalize Online Gambling?

It could be a decade or more.

Texas isn’t receptive of new forms of gambling. The casinos and gaming
parlors they have skirt state laws by offering Class II machines that operate
through loopholes.

With no commercial casino industry to lobby for internet gambling, it seems
unlikely that the activity will be available any time soon.

Strangely enough, though, Texas has had federal legislative efforts come out
of their state.

U.S. Representative Joe Barton (R-Tex.) proposed the Online Poker Act of
2011, which would’ve legalized online poker on a federal level. But HR-2366
didn’t get any significant attention in Congress.

In 2013, Barton introduced another legislative effort called the Poker
Freedom Act. This also sought to regulate internet poker on a federal level,
while leaving online casino games up to individual states.

The same year saw former State Senator Leticia van de Putte introduce State
Bill No. 1103. This legislation would’ve allowed states to opt in to federally
legalized internet poker.

None of Texas’ iGaming bills have gotten very far. But they do show that
state politicians at least consider the matter.

Looking at Texas today, though, we don’t see them regulating online gaming
for another 10 years.

Why Doesn’t Texas Bust Internet Gambling Sites?

Texas will bust an online gambling operation – they just haven’t shown the
willingness to cross seas to do it.

In 2013, state police raided a
$5 billion online sports betting operation in the North Texas area.

The eighteen-member ring accepted both online and in-person bets, making $200
million in profits from 2007 to 2011.

The main reason why this group was busted is because they operated on US
soil.

It’s an entirely different ballgame to pursue offshore gaming sites operating
in countries like Antigua and Barbuda, Costa Rica, and Panama. The only state
that has successfully done this is New York, which was backed by the U.S.
Department of Justice.

Because of their size, Texas has the resources to pursue offshore gambling
sites. But like most other American states, they view other things as more
important than chasing gambling sites.

Can I Gamble on my Smartphone or Tablet in Texas?

Gambling on your smartphone isn’t technically legal. But we don’t see you
ever being arrested for it.

Code 47.01 (4) states the following about illegal gambling devices:

“…means any electronic, electromechanical, or mechanical contrivance not
excluded under Paragraph (B) that for a consideration affords the player an
opportunity to obtain anything of value, the award of which is determined solely
or partially by chance, even though accompanied by some skill, whether or not
the prize is automatically paid by the contrivance.”

This could include a smartphone or tablet if Texas felt like pursing mobile
gamblers. But they’ve never arrested anybody for internet gambling, and we don’t
see this changing anytime soon.

Additional Resources

Here’s information on Texas gaming agencies and where you can find the
state’s gambling laws.

This website features many laws related to Texas’ gambling industry.

This page covers multiple gambling-related FAQs with Texas State Attorney
General Ken Paxton.

This page offers a comprehensive look at laws for Texas bingo, general
gambling, lotteries, and racing.

The Texas Racing Commission website features information on the state’s dog
and horse racing industries.

The Future

Texas features most forms of gambling, although they’re very limited in the
casino, pari-mutuel, and poker categories.

The Lone Star State has been conservative on the gambling front ever since
the lawless 1800s. This means that they’re slow to adapt to new forms of gaming.

The same holds true for internet gambling because Texas hasn’t legalized
casino games, poker, or daily fantasy sports.

Surprisingly, Texas has had politicians try to legalize online poker on a
federal level. But these efforts have never earned a serious look.

Odds are that iGaming will never be legalized on a federal level until the
state has commercial casinos. This has been an absolute condition thus far in
regulated states like Delaware, Nevada, and New Jersey.

Given that Texas has no immediate plans for casinos, this alone could take 5
to 10 years to happen. Then, we’re looking at a few more years until the Lone
Star State regulates internet gambling.

Until that happens, you’re free to enjoy offshore gaming sites, because Texas
ignores both operators and players.

Texas has the strictest gambling laws in the country, but could the state benefit from changing its outlook? Texas Hold ‘Em is perhaps the most popular card game in the world, but if you were to play it in the state that it took its name from, you could find yourself facing a $500 misdemeanor fine.

Texas has some of the strictest gambling laws in the whole of the United States, if not the entire western world. Penal Code 47.01 prohibits almost every form of gambling in the state, apart from a few bizarre exceptions like dog and horse racing.

Roulette, slot casino wagering and sports betting are all strictly off-limits in Texas (well, almost strictly off-limits, but we’ll get to that later). In this article, we take an in-depth look at what is and isn’t legal in the state, as well as hypothesizing whether Texas would benefit from adopting the same approach to gambling as the United Kingdom.

What is illegal in Texas?

Under the Penal Code, any form of gambling, defined as a bet placed on the premise of winning or losing something based purely on chance, is illegal. The following activities are classed definitively as gambling and are therefore illegal in Texas:

1. Casino gambling

All forms of casino gambling are illegal in Texas.

Every game on offer in a casino, from slot machines to poker, blackjack, and roulette, is categorized as gambling and is considered illegal. The law is not just limited to landbased casinos but it also applies to online companies looking to provide casino games to customers, too. Texan people currently cannot enjoy the amazing variety of games people can access in the UK at registered, popular sites like 888 Casino, where you’ll find exhilarating graphics and exciting games, including online roulette, blackjack, and poker.

However, there is one notable exception to this law which prohibits ‘keeping a gambling place’. In Native American lands, this law is not applicable meaning there are one or two places within the state where you can enjoy casino gambling facilities.

2. Sports betting

A night spent wagering on greyhound racing is legal in Texas, whilst more mainstream sports betting is not.

Wagering on the outcome of any mainstream sport in Texas is illegal and subject to the $500 misdemeanor fine. That applies to betting shops which are strictly prohibited and also the use of sports betting websites that may be registered in a different state or country.

Why Is Gambling Illegal In Texas

Horse racing and dog racing are however exempt from these laws, but only at licensed premises where you are permitted to bet just off the track. Simulcast races and ontrack pari-mutuel wagering are legal for horse racing.

Whilst there is a limit of three racetrack licenses for greyhound wagering with simulcast races and on-track pari-mutuel wagering also being legal.

3. Social Gambling

You may well think that social gambling would cover any form of gambling played between friends, such as a poker night or a special casino-style evening. However, in Texas social gambling refers solely to bingo and raffles sponsored by charitable organizations or licensed lotteries.

These activities are legal and enjoyed by many Texas residents. Social gambling in the non-legal sense is not. Even if you’re just playing a friendly game of cards at home with your friends you are all technically breaking the law.

Are there plans to loosen gambling laws in Texas?

Some states in the USA have legalized gambling, with it becoming increasingly popular.

The entire country is currently facing a crossroads when it comes to gambling, particularly the online derivative. In many states across the USA, there is a clear disparity between land-based gambling and online gambling with the latter almost always being illegal or at least partially prohibited.

At the time of writing a small handful of states have taken the bold step to legalize most forms of online gambling and are currently reaping the economic benefits. This has led to a lot more states putting forward tentative legislation to do the same, and it is expected that most states will have moved towards legalization by at least 2021.

Texas, however, is one of the most traditionally conservative states in the USA and will most likely be one of the last, if not the last states to loosen their gambling laws. There is a bill currently on the docket that pro-gambling advocates are pushing for, but that concerns mainly sports betting.

It is therefore likely that sports betting will be the first gambling act to be legalized throughout Texas. Gambling fans will, however, have to wait at least a few more years to see any further movement on casino, cards, and online gambling laws.

Why Is Betting Illegal In Texas

Is it worth loosening the gambling laws?

The arguments for and against gambling laws often become heated and extreme. One of the best and calmest way to analyze the effects of looser gambling laws is by being objective and looking to the example of the United Kingdom, a country that has previously struggled with gambling legislation but is now providing a successful blueprint.

British Gambling: An overview

Online gambling in the UK is booming, with the economy seeing significant boosts from since it was introduced.

In the United Kingdom (excluding Northern Ireland) almost every form of gambling is legal, ranging from casino betting and lotteries to online sports wagering. That policy of legalization has been hugely beneficial for the country.

The British economy has grown and benefitted from the widespread legalization of gambling. The industry in its entirety represents annual revenues of £15 billion ($19.76 billion) and provides hundreds of thousands of jobs.

Why Is Gambling Illegal In Texas Right Now

One of the biggest arguments against gambling legalization is always the social problems that may be incurred by gambling. However, in the UK experts claim that extra exposure to gambling has resulted in a more mature attitude to gambling, with a population who’s less likely to encounter problems with gambling.

The National Lottery in the UK has been running for the better part of three decades is one of the biggest contributors to charity in the country. It has helped to fund various schemes and enterprises as well as provide funding to the Olympic teams. In addition to this, every gambling operator in the country is required to donate a percentage of their turnover to gambling charities which provide help to those struggling with gambling problems.

Summary

Why Is Gambling Illegal In Texas Illegal

On the balance of all available evidence, it is safe to say that the legalization of gambling in the UK has had a positive impact on a range of measurable areas. With public opinion beginning to lean towards a similar approach in the USA and Texas, perhaps lawmakers should look to follow their lead?