Will Texas legalize online sports betting? Here's what some lawmakers are proposing.

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The push to let Texans legally wager on sports gained traction in the Legislature on Monday after lawmakers in the House and Senate filed bills to create and regulate online sports gambling in the Lone Star State.

A proposal authored by Rep. Jeff Leach, R-Plano, and Sens. Lois Kolkhorst, R-Brenham, and Juan "Chuy" Hinojosa, D-McAllen, seeks to combat illegal sports betting, create digital infrastructure for sports gambling not tied to destination casinos and allow for law enforcement oversight of the industry.

While the companion bills propose to give Texas residents the ability to legally place bets online before and during sporting events, House Bill 1942 and Senate Bill 715 stipulate that "participation in a lawful and licensed sports wagering industry is a privilege and not a right."

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"It is time for the Lone Star State to join the 35 other states who have passed similar legislation — and I look forward to working with my colleagues in the House and Senate to ensure this referendum is on the ballot of Texas voters in November,” Leach said in a statement released by the Texas Sports Betting Alliance, which backs the bill and employs former Gov. Rick Perry as a spokesman.

Additionally, the bills would allow those 21 and older to create online sports gambling accounts, and put the Texas Lottery Commission in charge of regulating the industry and approving interactive sports wagering platform permits with an initial cost of $500,000.

Two separate tiers would be created to distinguish between bets that are made during the sporting event — tier two — and tier one that consists of all other bets.

Any revenue the state collects would be earmarked for the Texas Education Agency, specifically for property tax relief, outside of a 2% portion carved out to create a gambling and addiction grant fund.

"Our neighboring states are cashing in on Texans’ bets, and a smart, efficient legal framework will keep that revenue here to go towards much-needed property tax relief,” Perry said in the Texas Sports Betting Alliance's statement.

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Since it would require a change to the state constitution, lawmakers cannot alone legalize sports betting. The most they can do, with a two-thirds vote by each chamber, is to bring the matter to Texas voters to decide. That is done through joint resolutions.

If Kolkhorst's Senate Joint Resolution 39 or Leach's House Joint Resolution 102 were to make the ballot in November and receive voters' approval, online sports wagering would be allowed beginning in 2024.

Shawn Harnish of Boston places a sports bet at a kiosk at Encore Boston Harbor casino on Jan. 31. Massachusetts kicked off sports betting at casinos in the state beginning Jan. 31.
Shawn Harnish of Boston places a sports bet at a kiosk at Encore Boston Harbor casino on Jan. 31. Massachusetts kicked off sports betting at casinos in the state beginning Jan. 31.

"It makes sense to rein in all of the illegal offshore betting and keep sports wagering funds here in Texas," Kolkhorst said in the joint statement. "This is a sensible plan, which is why so many states have already passed similar legislation."

In total, 36 states have approved legalized sports betting, some making it available in casinos and sportsbooks and others through online betting sites, according to the American Gaming Association. Meanwhile, 14 states have not taken action: Texas, Alabama, Alaska, California, Georgia, Hawaii, Idaho, Kentucky, Michigan, Minnesota, Missouri, Oklahoma, Utah and Vermont.

Outside of lawmakers, each of Texas' professional sports teams in Major League Baseball, the National Football League and the National Basketball Association provided comment in support of Monday's bill filing.

“A legal and regulated sports betting market is what’s best for Texas and I applaud Senator Kolkhorst and Representative Leach for filing this legislation,” said Jerry Jones, owner of the Dallas Cowboys. “It will give Texans the ability to decide for themselves if they want this activity safely regulated or continue to be conducted in the shadows by out-of-state betting platforms.”

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Jones' comments were echoed by leadership from the metroplex-based Texas Rangers, Dallas FC and Dallas Mavericks, along with the San Antonio Spurs, Houston Texans and Austin FC.

In the same statement, Jim Crane, the Houston Astros owner who visited the Capitol last month with his team to celebrate the franchise's 2022 World Series title, said betting on games will happen whether gambling is "regulated or not."

“Rather than having Texans betting illegally through unknown companies in foreign countries, this bill will allow controls and safeguards for sports betting in Texas while generating significant revenue that will be used to reduce everyone’s property taxes in Texas,” Crane said.

With the addition of powerful lawmakers like Kolkhorst, chair of the Senate Committee on Health and Human Services, and Leach, who is yet to receive committee assignments for this session but has previously served as chairman of the House Committee on Judiciary and Civil Jurisprudence, the conversation around sports gambling is taking a more serious tone.

Even with bipartisan support and House Speaker Dade Phelan, R-Beaumont, expressing an early interest in possibly loosening gaming restrictions and allowing "destination-style" casinos, how far legislation moves on gaming will come down to Lt. Gov. Dan Patrick, who oversees the state Senate.

Previously, Patrick has expressed no interest allowing sports gambling in Texas and has not publicly changed his view this session. His office did not respond to request for comment Monday.

Last session, Patrick appeared on Chad Hasty's radio program on KFYO in Lubbock and said the expected gaming revenue would make a small dent in a state that spends $125 billion a year. He also cited infighting among gambling groups as a reason for Texas to stay out of the betting business.

Last Friday, Rep. Charlie Geren, R-Fort Worth, filed House Joint Resolution 97, which allows for casino gaming at destination resorts, sports wagering and would create the Texas Gaming Commission. The resolution follows a similar proposal from Sen. Carol Alvarado, D-Houston, that she filed in November and also creates destination gaming.

This article originally appeared on Austin American-Statesman: Texas Legislature: Lawmakers file bills to legalize sports gambling