Will Problem Gambling Keep Texans From Expanding Gambling

Voters in the Lone Star State may finally be able to decide the future of gambling in the state.

House Joint Resolution 52 has been introduced in the Texas House for the 2027 legislative session and proposes allowing residents to vote on legalizing sports betting and casino gambling. It comes after Lieutenant Governor Dan Patrick lost his bid for re-election, ensuring the biggest opponent of gambling expansion will no longer hold office in the state.

While proponents believe the impending leadership change will help the bill pass, growing fears over problem gambling make the outcome of a public vote far less certain.

Concerns Over PG Are Rising

Over the last eight years, Americans have largely supported legalizing online sports betting. While online casino gaming hasn’t seen the same support, it appears to be shifting in the industry’s favor over the last few years.

However, the last year has seen public support for legal gambling decline. While it has generated crucial tax revenue for states, the impact on public health has been devastating. States have sought solutions but have made little progress over the years.

Stories about problem gambling have also increased, especially after the scandal involving Texas Tech quarterback Brandon Sorsby. This story unfolded in the Lone Star State, giving Texans a front-row seat. As a result, they saw firsthand how devastating compulsive gambling can be and how it is affecting young bettors and even high-earning athletes.

Nebraska Rejects Sports Betting

During the 2026 midterm elections, Nebraska voters showed the country the impact problem gambling is having on public support for sports betting.

A $20+ million effort in Nebraska successfully circumvented years of legislative deadlock to put the question of legalizing sports betting to voters. Two questions were on the ballot in November, but both lost by around 10%. This dealt a stunning blow to industry proponents, who remained confident at least one proposal would pass.

Residents in Nebraska were concerned that the projected tax revenue wouldn’t be enough to offset the damage the industry would do to the public. This led many to drop their support for legal online sports betting, resulting in the effort’s defeat earlier this month.

Prediction Threat May Be Ending

One of the key arguments used by proponents of gambling expansion is that Texans are already engaging with these industries. This includes sports prediction markets, which are not currently considered gambling. As a result, states without legal sports betting, such as Texas, can offer them.

While the industry has seen its volume spike over the last year, its future remains in doubt. Bipartisan opposition from state lawmakers continues to grow, while the public remains wary of the offering. This has led to months of legal battles that the US Supreme Court will soon resolve. 

If SCOTUS rules that sports markets are a form of gambling, it would force operators to abide by state laws. After that, Texas could force all platforms offering these controversial markets to halt them. 

While offshore casinos and sportsbooks remain a threat, their volume doesn’t come close to matching the prediction industry's.