Within the Texan gambling climate, all forms of gambling are illegal unless specifically legalised by the voters and signed into law by the Governor. While outlawed, the penalties for unlawful gambling are small and are treated as misdemeanour crimes under federal law. Each gaming option within the state comes with a specific set of rules, which we will summarise hereunder.

• Horse and Greyhound Betting: There are 6 regulated racetracks in Texas that host either horse or dog races. Betting on such events can be done both at the track, or off-site via mobile app. This means that off-site race betting is the only legalised form of online gambling in the state of Texas. When placing bets on animal races, gamblers must be 21 years or older.

• Charitable Gambling: Charitable gambling with Bingo is the oldest form of legalised gambling in Texas. It is a popular pass-time for many residents as there are no other gaming outlets available to gamblers. Bingo can only be operated by Non-Profit organisations under strict license and may be played by all those 18 years or older. If a minor plays the game, they must be accompanied by an adult.

• Lottery Gaming: The lottery is specifically state-run and cannot be commercially offered by private companies. Both scratch cards and lotto draw cards are sold at thousands of general dealers around the state, where players 18 years and older may purchase tickets and gamble on the outcomes. The lottery revenues are used primarily to bolster the state’s education system.

• Tribal Casinos: Only the Lucky Eagle Casino on Kickapoo land may offer casino gaming in the region. Games under the compact include electronic games like slots, video poker, and electronic table games. No real tables may be offered. Poker is an exception and is played in a dedicated poker room on the grounds. The age restriction for legal casino gaming is 21 years

• Sports Betting: Sports betting is currently illegal in the state of Texas.

• Daily Fantasy Sports: While the attorney-general of Texas ruled that Daily Fantasy Sports contravened the gambling act in the state, the games are still offered to Texans, as the laws came about without a closure demand. For this reason, residents play on apps like FanDuel and DraftKings without any fear. The state is close to the legalisation of the activity, with the voters clearing a bill that made it past its preliminary state in mid-November of 2019. For now, the sport lingers without formal regulation.

Gambling in the state of Texas is monitored by two different bodies. All Horseracing and Greyhound Racing is regulated by the Texas Racing Commission, while the Lottery is overseen by the Texas Lottery Commission. Both watchdogs align themselves with the legislation on gambling and report as subsidiaries to the State Government of Texas.

Lottery

Since 1992, the lottery has generated more than $31,000,000,000 in revenue for good causes in Texas. Revenues have been distributed for the enhancement of education in the state, as well as veterans’ services and other vital state programs.

Through strict adherence to the state’s core values and mission, the Texas Lottery is dedicated to ensuring that the benefit to the state is maintained. The breakdown of each dollar spent on the lottery is distributed as follows:

• Prizes Paid – 64.9%
• Education - 25.8%
• Retailer Compensation - 5.4%
• Lottery Administration – 3.6%
• Funds for Veterans’ assistance and other important state programs – 0.3%

The Texas lottery is well regulated to ensure that all players and treated fairly and can play safely. Included in their player protection protocols on their site, they include:

• Security Tips on playing.
• Misconceptions about the Lottery.
• Description of the audible tones on terminals when the tickets are scanned.
• Information on lottery scams to watch out for.
All lottery ticket vendors in the state are strictly and thoroughly vetted to ensure that safety and ethics protocols are always adhered to for the protection of players and the State.

Horserace Betting
Two parties that must be licensed in the horserace betting industry:

• Racing Participants: Any individual that works or participates in pari-mutuel racing in Texas.
• Association/Racetrack Employees: All employees that have a job that could potentially influence a race or those who would have significant access to the backside of the track must be licensed by the Texas Racing Commission.

The licensing process is implemented to uphold the ethos of the sport and ensure that no races are influenced by any factors, as this could prove devastating for betters. The vetting process for all new applicants involves supplying a fingerprint card and undergoing a full background check. A form must be filled out and the license fee paid.