- Why Is Casino Gambling Illegal In Texas
- Why Is Gambling Illegal In Texas
- Why Is Gambling Illegal In Texas
- Is Online Gambling Illegal In Texas
- Is Gambling Illegal In Texas
It isn't illegal, so before asking why a thing is a certain way one should ask if it's true. Texas has legal gambling, but perhaps the type of gambling that the OP likes is not legal here. The gambling laws are incredibly rigid in the Lone Star State and bookmaking is a Class A misdemeanor. Despite sports betting being illegal in Texas, the state’s biggest sports team, the Dallas Cowboys, have agreed to a sponsorship agreement with WinStar World Casino. With the deal, the Cowboys became the first NFL team to partner with a casino.
- Texas is one of the strictest states when it comes to gambling and its laws can cover a wide variety of activities. Under Texas law, (Penal Code §47.02) gambling is considered a criminal offense if someone: 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.
- While gambling that results in cash payouts is illegal in Texas, state law exempts machines used solely for entertainment purposes that dole out small, non-cash prizes.
The federal government, and to a lesser extent Texas, expends a vast amount of energy and resources prosecuting individuals associated with gambling crimes. This includes bookmakers and companies that assist in the placement of bets and collection of gambling debts.
Gambling in Pop Culture
Pop culture has drawn a distinction regarding gambling that has become an urban legend. That is, there is a perception that somehow poker, as a game, does not necessarily constitute gambling because it is a game of skill rather than chance. The following two examples set the stage.
Rounders (1998)
Matt Damon’s character asks, “Why do you think the same five guys make it to the final table in the world series of poker?” What, are they the luckiest guys in Las Vegas? It’s a skill game, Jo.”
Molly’s Game (2017)
Jessica Chastain who plays Molly Bloom states, “Poker is a game of skill, not a game of chance.”
While the contrast between skill and chance makes for great theater, it is not necessarily recognized in courtrooms. Federal law has consistently applied 18 USC 1955, a statute outlawing the operation of a gambling business, to poker. One case out of New York, United States v. Dicristina, contains a long list of such cases. In fact, in Dicristina the Second Circuit Court of Appeals specifically rejected the distinction between games that are predominantly games of chance and games that involve some measure of skill.
Put simply, the legal question is not whether an activity is predominantly based on chance versus skill. Rather, federal law applies the definition of gambling to games that contain some measure of chance. An examination of Texas state law and federal law illustrate the fallacy of the urban legend shielding poker from criminalization based upon its inclusion of elements of skill.
Is Gambling Illegal under Federal Law?
One of the most common federal statutes used to prosecute interstate gambling crimes is found in 18 USC 1084 which criminalizes using any wire medium, such as phone lines or the internet, to transmit wagering information. This statute also makes the proceeds associated with gambling subject to asset forfeiture.
For example, if a bookmaker uses the internet to place a bet online on behalf of customers and does so from a state where such a wager is illegal, then that person transmitted wagering information is in violation of federal law. Many online poker sites have been targeted for such prosecutions.
Federal Law: Prohibition of Illegal Gambling Businesses
In terms of gambling prohibitions, federal law is largely based upon state law. That is, federal law prohibits activity that is already prohibited in a given state. 18 USC 1955 prohibits a person from conducting, managing, supervising, directing, or owning “all or part” of an illegal gambling business. Thus, the operative question becomes what constitutes an “illegal gambling business?” Under 1955(b)(1)(i), such a business is one which operates in “violation of the law of a state or political subdivision in which it is conducted” and involves 5 or more persons who conduct or finance such business and has a gross revenue in excess of $2,000 in a single day. In other words, federal law prohibits gambling activity at a higher threshold than most state laws.
Violation of 18 USC 1955 carries a penalty of up to 5 years imprisonment and a fine up to twice the pecuniary gain of the enterprise.
While the statutory sentencing boundaries include sentences between 0-5 years, the United States Guidelines envision sentences shorter than five years. Even though the Guidelines are no longer mandatory, they are consulted by judges in every case. Violations of this statute involve a base offense level of 12 which envisions anywhere from a 10-month sentence to a 37-month sentence, depending upon the criminal history of the particular person charged.
Under the same section, any property used in violation of Section 1955 may be forfeited to the United States. This would include all money involved in bets as well.
Trends in Federal Prosecution of Gambling
These statutes often intersect the ever-growing landscape of the internet. In the last several years, the U.S. Government has prosecuted people from all over the country for the operation of an illegal gambling business. These prosecutions often include accusations that bookmakers and other participants engaged in acts of money laundering under 18 USC 1956 and 1957.
It is not uncommon for cases to be based upon people taking bets and relaying such bets to offshore gambling websites. These sites can track bets, wins, losses, lists of persons owed and persons owing.
Even individuals who take bets and do not place money in the sites may still be prosecuted. People who use the sites to simply serve as a ledger have been prosecuted.
Also controversial is the government’s use of 1955 to pursue per head players. This is a term that describes a compensation arrangement whereby bookmakers pay for a service per month per player to set betting lines and tracking wins and losses and amounts of such.
Ultimately, state and federal authorities still retain the power to prosecute a fair amount of gambling activity.
People facing charges under 1955, 1956, or 1957 need to take immediate action to counteract the government’s case. It is important to differentiate money and accounts involved with any betting activity and those that do not. It is also important to consult tax payment history and take other steps to evaluate whether the government can establish that more than five individuals were actually involved in the alleged enterprise. It is also important to gather and examine records pertaining to assets and accounts that may have received deposits from sources that are not traditional or look like gambling activity.
These steps are critical in any challenge to an accusation that a person engaged in the operation of an illegal gambling business. It’s also important to begin a dialogue with government prosecutors and agents to examine case discovery. It is also necessary to have a working understanding of federal law, federal procedure, and advocacy within federal courts.
Don’t Miss: Is your fantasy football team illegal in Texas?
Is Gambling Illegal in Texas?
In step with federal law under Dicristina, the State of Texas defines the term “bet” as “an agreement to win or lose something of value solely or partially by chance.”
The definitions under Texas Penal Code 47.01 describe gambling in Texas:
47.01(2)(B) defines bookmaking as acts where a person (or entity) receives and records or forwards offers to bet totaling more than $1,000 in a period of 24 hours.
47.01(2)(C) defines bookmaking as a scheme by three or more persons to receive, record, or forward a bet or an offer to bet.
47.01(3) defines a gambling place as “any real estate, building, room, tent, vehicle, boat, or other property whatsoever, one of the uses of which is the making or settling of bets, bookmaking, or the conducting of a lottery or the playing of gambling devices.
These definitions become important in both Texas and federal courts because federal law largely bases its rules upon state standards for gambling activity.
In Texas, a person commits the offense of gambling if the person 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. A bet is an agreement to win or lose something of value solely or partially by chance. It specifically excludes an offer or a prize or award to the actual contestants in a bona fide contest for the determination of skill, speed, strength, or endurance or to the owners of animals, vehicles, watercraft, or aircraft entered in a contest. It is a defense to prosecution if no person received any economic benefit other than personal winnings. Under Texas Penal Code sections 47.01 through 47.06, the state also criminalizes gambling by disallowing any bookmaker to record or forward more than five bets in 24 hours. Operating establishments that qualify as gambling places or possessing gambling devices is also illegal.
Texas State Offense: Gambling
Penal Code Section 47.02 outlaws gambling in the state of Texas with very limited exceptions. Specifically, it is illegal to make a bet on a sporting event or “game played with cards.” The only exceptions to this statute exist where a bettor places a bet in a private place or pursuant to a raffle, a bingo game/contest, or a raffle.
A violation of Texas Penal Code 47.02 is a Class C Misdemeanor which carries a penalty of a fine up to $500.
Texas State Offense: Gambling Promotion
Penal Code 47.03 creates an offense for gambling romotion. That is, it is an offense to knowingly “operate or participate in the earnings of a gambling place,” “engage in bookmaking,” or even “become a custodian of anything of value” related to a bet.
Violation of Texas Penal Code 47.03 is a Class A Misdemeanor which carries a penalty of up to a year in jail and a fine up to $4,000.
Texas State Offense: Keeping a Gambling Place
Penal Code Section 47.04 creates an offense for keeping a gambling place. That is, it is an offense to use or permit another to use any real estate, building, room, or other property whatsoever as a gambling place. There is a limited exception for persons who use a private place and receive no economic benefit other than personal winnings.
In Texas, it is illegal to operate a casino. Keeping a place of gambling, communicating gambling information, or possessing a gambling device with intent to further gambling (such as renting slot machines for parties) are all illegal actions that are punishable by the Texas law. There is an exception for Indian reservations, where casino-style facilities are allowed in some locations.
Violation of Texas Penal Code 47.04 is a Class A Misdemeanor which carries a penalty of up to a year in jail and a fine up to $4,000.
Gambling and Forfeiture of Assets
In both the federal and Texas systems, these offenses can support the forfeiture of any proceeds or equipment linked to gambling crimes. Further, crimes associated with gambling, such as money laundering and wire fraud, often accompany internet gambling cases.
Under Article 18.18(a) and (b) of the TCCP, all gambling proceeds and equipment are subject to forfeiture to the State of Texas. This is the case regardless of whether a criminal prosecution takes place for the underlying offenses.
Social Gambling in Texas
On the other hand, a Texas resident cannot be penalized for social gambling. This is considered gambling in games such as bingo or in raffles that are sponsored by charitable organizations. Also, bona fide contests of skill where money is involved are also allowed in the state.
There are also racetrack licenses for greyhound racing in the state. Those who participate in simulcast races and on-track pari-mutuel wagering are not breaking the law and will not be penalized for their actions. Also, licensed horse racing is permitted in the state of Texas and residents are permitted to bet on simulcast races and on-track pari-mutuel wagering.
Crimes Related to Lotteries in Texas
It is a crime to steal, forge, or alter tickets for the lottery, and to sell tickets at a greater price than originally listed. Also, it is considered fraud to influence the selection of the lottery winner. Individuals who attempt to do this can be penalized. In addition to this, in Texas it is illegal to sell lottery tickets to minors or to make lottery ticket sales over the phone.
How Gambling Prosecutions are Initiated
Not surprisingly, gambling cases often begin the same way most white collar crimes begin. That is, sometimes people are named as co-conspirators by targets of already existing federal investigations. Another common method federal agents use to locate targets is through the massive Currency Transaction Reporting Requirement apparatus that exists. Financial institutions, including casinos, are required to report various cash transactions. More important than such transaction reports are Suspicious Activity Reports (SARs). Casinos and banks are required to report any activity they deem suspicious. Oftentimes, people will purchase a lot of chips at a casino and then cash in those chips without engaging in much gambling activity. Ironically, this is a situation where choosing to gamble too little can actually put a person on the Government’s radar.
Regardless of how a case is started. Once a person is a target, agents will likely examine bank records, credit reports, and other financial documents to begin to develop the names of potential bettors who placed money with the target. If such named people cooperate, a case prosecution could result. Obviously, these types of actions are taken without the target’s knowledge. This means that if a federal agent approaches a person that person should assume the agent knows a significant amount about the person’s employment history and finances.
Gambling Defense
Are you or a loved one facing charges related to gambling? Call us today at (817) 203-2220 or reach out online. for a complimentary strategy session. Our team of former prosecutors and Board Certified Criminal Lawyers are here to help. During this call we will:
- Discuss the facts of your case;
- Discuss the legal issues involved, including the direct and collateral consequences of the allegation; and
- Discuss the defenses that apply to your plan and in general terms discuss our approach to your case.
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.
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.
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.
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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.”
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.
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.
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:”
“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.
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.
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:
in the Lone Star State, but they continue to
operate here for three main reasons:
- Texas doesn’t have a regulated iGaming market.
- Texas hasn’t taken legal action against offshore sites.
- 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.
are served by offshore operators.
Even Louisiana, South Dakota, and Washington – which explicitly outlaw online
gambling – have problems with offshore sites.
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.
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.
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:
- “… 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.” - “… 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.” - “… 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.
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.
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.
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.
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.
part, offshore gambling sites are safe.
![Illegal Illegal](https://media.fox26houston.com/media.fox26houston.com/photo/2018/12/16/Immigrant_Child_Death_0_6533407_ver1.0_640_360.jpg)
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.
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.
operators have closed without repaying player deposits.
But here’s the thing: most offshore operators realize the value in repeat
business.
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.
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.
The more reviews you read, the better you’ll be able to make an informed
deposit.
Why Is Casino Gambling Illegal In Texas
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.
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
Gambling Venues in Texas
The History of Gaming Laws in Texas
Texas Gambling FAQ
The Furture of Gambling in Texas
Gambling Venues in Texas
The History of Gaming Laws in Texas
Texas Gambling FAQ
The Furture of Gambling in Texas
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.”
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.
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.
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.
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.
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.
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.
One stipulation to these games is that individual payouts can’t be any larger
than $5.
Lucky Eagle Casino & Hotel
Win a day casino. 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.
filled with brothels, saloons, and gambling halls. This continued long after
Texas became a state in 1845.
Why Is Gambling Illegal In Texas
Professional gamblers like “Doc” Holliday and “Lottie Deno” Thompkins roamed
the plains of Texas in the mid and late 1800s.
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.
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.
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.
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.
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.
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.
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.
legislative front.
Why Is Gambling Illegal In Texas
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 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.
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.
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:
aren’t legal. Here’s an excerpt from his
January
2016 letter:
Is Online Gambling Illegal In Texas
“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.”
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.
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.
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.
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.
unlikely that the activity will be available any time soon.
Strangely enough, though, Texas has had federal legislative efforts come out
of their state.
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.
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.
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.
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.
state politicians at least consider the matter.
Looking at Texas today, though, we don’t see them regulating online gaming
for another 10 years.
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.
willingness to cross seas to do it.
In 2013, state police raided a
$5 billion online sports betting operation in the North Texas area.
$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.
million in profits from 2007 to 2011.
Is Gambling Illegal In Texas
The main reason why this group was busted is because they operated on US
soil.
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.
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.
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.
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.”
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.
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.
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.
General Ken Paxton.
This page offers a comprehensive look at laws for Texas bingo, general
gambling, lotteries, and racing.
gambling, lotteries, and racing.
The Texas Racing Commission website features information on the state’s dog
and horse racing industries.
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.
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 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.
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.
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.
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.
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.
ignores both operators and players.