The great state of Texas has finally put a bill forward to legalize sports betting by the end of 2021. Per The Athletic’s Daniel Wallach – Texas Republican Dan Huberty has filed HB 2070 & HJR 97 that would put Texas sports betting to a November 2021 vote. Texas sports betting had appeared unlikely in the past so this news is rather surprising.
Texas Pro-Teams Could Operate Sportsbooks
Adding to the surprises of this news is that sports teams would be license holders – rather than casinos. This would be an interesting development to see how sports leagues would work with this type of format. In most states, online sports betting apps often need to partner with local casinos or operators in order to gain access to the market. For example, in Michigan, FanDuel operates in partnership with MotorCity Casino in Detroit.
Furthermore, this could have rippling effects on the teams’ value as well as how sports betting is legalized and licensed. In order for companies like Penn National, DraftKings, and FanDuel to gain access – they must work with the teams first. According to Roundhill Investments, the bill is backed by the Sports Betting Alliance. The Alliance includes teams such as the Cowboys, Mavericks, Rockets, Rangers, and more.
Cowboys Owner Jerry Jones has long been an advocate for legalized sports betting. Jerry Jones was one of the first investors in DraftKings. This relationship could make it easy for DraftKings Sportsbook to work a deal with America’s Football Team.
What Texas Teams Would Get A Sports Betting License?
Sports betting licensees are very expensive in most states. For instance, in New Jersey, a sports wagering license costs a $100,000 renewal fee every five years. This is not including the application fees, initial fee to get the license, and other permits which total around $1 million.
Once all of these fees are paid, sports teams can then partner with sportsbooks for a fee. At this point, sports teams and sportsbooks will work together to bring the product to the state. It is unclear what kind of role these sports teams would play in the day-to-day activities of operating a sportsbook app in Texas.
Below you will see a list of the major sports teams that could vie for a Texas sports betting license.
- Dallas Cowboys
- Houston Rockets
- Dallas Mavericks
- Houston Texans
- Texas Rangers
- San Antonio Spurs
- Houston Astros
- FC Dallas
- Texas Longhorns???
College Football Betting In Texas
It is unclear where college football would fit into such an arrangement. It is unquestionable that the Texas Longhorns are one of the most popular entities in the entire state. College sports have been a difficult question across the country in the way of sports betting. Most states place some sort of restrictions on college betting. Some states, including New Jersey and Virginia, place significant restrictions on college betting, particularly on betting on in-state teams.
It is unclear at this point what sort of restrictions Texas could place on college betting or whether the Longhorns could operate their own sportsbook. This is unheard of elsewhere in the country, but sometimes in Texas, anything goes.
Expect more clarity to come on the impending bill in the state of Texas. Any Texas sports betting launch would be huge for gambling companies, even if licenses are owned by local Texas teams.