Texas (USA): gambling regulation and licensing

Texas licenses no commercial casino, sports betting or online gambling, so it has no gaming commission. Penal Code chapter 47 makes betting on games, contests and elections an offence for the player, and bookmaking, running a gambling place and selling chances on sporting or election results offences for the operator. The lawful exceptions are narrow: the state lottery, charitable bingo and raffles, and pari-mutuel wagering inside licensed racetracks. Since 1 September 2025 the Texas Department of Licensing and Regulation has run the Texas Lottery and regulated charitable bingo, after Senate Bill 3070 abolished the Texas Lottery Commission. The same law, in force from 20 June 2025, requires tickets to be bought in person at a licensed retailer and makes buying or selling them by telephone or app a Class A misdemeanour, which ended courier sales. Lottery sales were $7.87 billion in the year to 31 August 2026 (unaudited), and $1.82 billion went to the Foundation School Fund. The Texas Racing Commission licenses racetracks, and the Racing Act bars telephone and internet race wagering, so advance deposit wagering is not available. Casino and sports betting proposals in 2025 (SJR 16, HJR 134 and HJR 137) were drafted as constitutional amendments, which need two-thirds of each chamber and voter approval; none got beyond referral to committee. A 2016 Attorney General opinion treats paid daily fantasy sports as illegal gambling. The Senate State Affairs Committee heard testimony on prediction markets on 15 September 2026 under an interim charge on closing gambling loopholes, ahead of the regular session that opens on 12 January 2027.

Regulator

Texas Department of Licensing and Regulation (TDLR)

Regulator type

Sub-national body

Headline tax

See Taxation

Licence required

Yes

Minimum age

Not yet verified

Tax base

There is no gaming tax because no commercial casino or betting is licensed. Lottery revenue after prizes and operating costs (costs capped at 12% of gross ticket revenue in a biennium) is transferred to the state (Government Code s. 466.355). Charitable bingo pays a 5% fee on cash prizes over $5, and racetracks set aside a share of live pari-mutuel pools for the state.

Built from the record on this page, last verified 23 Sept 2026. The Licensing and Taxation sections carry the full detail and sources.

Licence required

Yes

Application window

Not yet verified

Local establishment required

Not yet verified

Local server required

Not yet verified

Bank guarantee or bond

Lottery sales agents must post a cash bond, surety bond, letter of credit or other approved security, or contribute to a pooled bond fund (Government Code s. 466.156). The Racing Commission may require a bond from a racetrack licence holder or applicant (Occupations Code s. 2025.057).

Notable licensees

Sam Houston Race Park, Lone Star Park, Retama Park

Barriers to entry

There is no licence of any kind for online gambling, casino gaming or sports betting. Legalising them has been proposed as constitutional amendments, which need a two-thirds vote of each chamber and voter approval (art. XVII s. 1). Lawful gambling is limited to the state lottery, charitable bingo and raffles run by qualifying nonprofits, and on-track pari-mutuel wagering.

Headline GGR tax

Not yet verified

Effective date

Not yet verified

Player winnings tax

Texas levies no individual income tax (Constitution art. VIII s. 24-a). Lottery tickets are exempt from sales tax and local governments may not tax tickets or prizes (Government Code s. 466.004). Gambling winnings are federal taxable income, and payers issue Form W-2G for certain winnings.

Withholding mechanism

Federal withholding applies to certain gambling winnings under the Form W-2G rules; the lottery also deducts delinquent state debts and child support from prizes (Government Code ss. 466.407 and 466.4075).

Tax base

There is no gaming tax because no commercial casino or betting is licensed. Lottery revenue after prizes and operating costs (costs capped at 12% of gross ticket revenue in a biennium) is transferred to the state (Government Code s. 466.355). Charitable bingo pays a 5% fee on cash prizes over $5, and racetracks set aside a share of live pari-mutuel pools for the state.

Minimum age

Not yet verified

National self-exclusion

Not yet verified

KYC timing

At the point of sale for lottery tickets.

KYC requirements

Lottery tickets may not be sold to anyone under 18 (Government Code s. 466.3051), and since 2025 every retailer must verify each purchaser's age at the point of sale by a process set by rule (s. 466.258); TDLR proposes electronic reading of a driver licence or identification certificate. Under-18s may play bingo only with a parent or guardian (Occupations Code s. 2001.418). Wagering at a racetrack by anyone under 21 is an offence (ss. 2021.003 and 2033.017).

Stake limits

A retailer may not sell more than 100 lottery tickets to one individual in a single transaction (Government Code s. 466.255), nor knowingly sell draw tickets to a person trying to buy all or substantially all possible winning combinations (s. 466.1555). Pull-tab tickets sold from a dispenser may not cost more than $1 (Occupations Code s. 2001.410).

Reporting obligations

Licensed bingo organisations file quarterly reports under oath and remit prize fees quarterly (Occupations Code ss. 2001.504 and 2001.505).

Game content restrictions

The lottery may not run games decided by the outcome of a sports event or use video lottery machines (Government Code s. 466.024). No more than five lottery terminals or vending machines per retail location unless rules allow more (s. 466.259). At most five pull-tab dispensers per bingo premises (Occupations Code s. 2001.410), and raffle prizes may not be money (s. 2002.056).

Advertising permitted

Not yet verified

Affiliate rules

Affiliates are not licensed. Arranging for another person to buy a lottery ticket on a player's behalf by telephone or internet for compensation is a Class A misdemeanour (Government Code s. 466.318), which covers courier and referral models for the lottery.

Penalties for breach

Class A misdemeanour: fine up to $4,000, up to one year in jail, or both (Penal Code s. 12.21).

Credit card ban

Not yet verified

Crypto stance

Not yet verified

Payment blocking regime

No statutory payment blocking regime was found in the Penal Code gambling chapter or the State Lottery Act. Since 20 June 2025 lottery tickets may be bought only in person at a licensed retailer (Government Code s. 466.257).

ISP blocking

Not yet verified

DNS blocking

Not yet verified

Payment blocking

Not yet verified

App store takedowns

Not yet verified

Administrative penalties

TDLR may deny, suspend or revoke a lottery sales agent licence after a hearing, or suspend one summarily where needed to protect the integrity of the lottery (Government Code ss. 466.155 and 466.160). The Racing Commission may refuse, suspend or revoke racetrack and occupational licences and impose administrative penalties (Occupations Code ss. 2025.201, 2025.202 and 2025.262).

Criminal penalties

Gambling by a player: Class C misdemeanour, fine up to $500 (Penal Code ss. 47.02 and 12.23). Gambling promotion, bookmaking, keeping a gambling place, communicating gambling information and possessing gambling devices: Class A misdemeanour, fine up to $4,000, up to one year in jail, or both (ss. 47.03 to 47.06 and 12.21). Telephone or internet lottery purchase or sale: Class A misdemeanour (Government Code s. 466.318). Selling more than 100 tickets in one transaction or failing to verify age: Class B misdemeanour, fine up to $2,000, up to 180 days, or both (ss. 466.255, 466.258 and Penal Code s. 12.22).

Operator liability

Operators, bookmakers and anyone who shares in the earnings of a gambling place or sells chances on games, contests or elections are criminally liable under Penal Code s. 47.03. Lottery couriers and anyone who arranges internet or telephone ticket purchases for compensation commit an offence under Government Code s. 466.318.

Player liability

Making a bet on a game, contest or election, or playing and betting for money at a game of chance, is a Class C misdemeanour (Penal Code s. 47.02), subject to the private-place defence. Buying or ordering a lottery ticket by telephone or internet is a Class A misdemeanour (Government Code s. 466.318(a)(1)).

1. 4 Nov 1980

   Voters amend the Constitution to allow charitable bingo

2. 5 Nov 1991

   Voters amend the Constitution to allow a state lottery

3. 19 Jan 2016

   Attorney General Opinion KP-0057 concludes daily fantasy sports is likely illegal gambling

4. 1 Apr 2019

   Recodified Texas Racing Act takes effect, confining race wagering to racetrack enclosures

5. 15 Jun 2022

   Supreme Court decides Ysleta del Sur Pueblo v. Texas in favour of the tribe on bingo

6. 24 Feb 2025

   Texas Lottery Commission declares lottery courier services not allowed under Texas law

7. 26 Feb 2025

   Attorney General opens an investigation into lottery wins involving bulk purchases and a courier

8. 19 Mar 2025

   HJR 134 and HJR 137 on sports betting and casinos referred to House State Affairs; neither advances

9. 19 May 2025

   Rules barring lottery retailers from working with couriers take effect

10. 20 Jun 2025

    SB 3070 takes effect, banning online and courier lottery sales and abolishing the Texas Lottery Commission

11. 1 Sept 2025

    Lottery and charitable bingo oversight passes to the Texas Department of Licensing and Regulation

12. 27 Jul 2026

    TDLR proposes lottery and bingo rules implementing SB 3070

13. 14 Sept 2026

    Senate State Affairs Committee hearing monitors implementation of SB 3070

14. 15 Sept 2026

    Senate State Affairs Committee hearing on prediction markets

15. 12 Jan 2027

    90th Legislature convenes in regular session

16. 1 Sept 2029

    State lottery expires unless continued after Sunset review

The 90th Legislature convenes on 12 January 2027, and the Senate State Affairs Committee's study of prediction markets, including election contracts, is intended to shape proposals for that session. Any casino or sports betting bill would again need a constitutional amendment passed by two-thirds of each chamber and approved by voters. TDLR is finalising its rules implementing SB 3070, after the comment period closed on 8 September 2026, and the Senate committee is monitoring the transfer. The lottery faces a Sunset review and expires on 1 September 2029 unless the Legislature continues it.

Is online sports betting or online casino legal in Texas?

No. Penal Code chapter 47 makes betting on games and contests and playing games of chance for money offences, and no statute licenses sports betting or casino gaming online or offline. Proposals in 2025 to amend the Constitution to allow them did not get beyond committee.

Can I buy Texas Lottery tickets online or through a courier app?

No. Since 20 June 2025 tickets may be bought only in person at a licensed retailer, and buying, ordering or selling tickets by telephone or internet application, or arranging purchases for others for compensation, is a Class A misdemeanour (Government Code ss. 466.257 and 466.318).

Who regulates gambling in Texas now that the Texas Lottery Commission is gone?

The Texas Department of Licensing and Regulation has run the lottery and regulated charitable bingo since 1 September 2025 under SB 3070. The Texas Racing Commission regulates pari-mutuel racing.

Is daily fantasy sports legal in Texas?

Attorney General Opinion KP-0057 (2016) concluded that paying to enter daily fantasy sports contests is a bet and a court would likely find it illegal gambling under Penal Code s. 47.02. The opinion is not a court ruling.

Are prediction markets legal in Texas?

There is no state licence for them and no Texas ruling on federally registered exchanges was found. Betting on games, contests and elections is an offence under the Penal Code, and the Senate State Affairs Committee held a hearing on prediction markets on 15 September 2026 ahead of the 2027 session.

What would it take to legalise casinos or sports betting in Texas?

The 2025 proposals were constitutional amendments, which need a two-thirds vote of all members of each chamber and approval by voters (art. XVII s. 1). The next regular session convenes on 12 January 2027.

How much does a gambling licence cost in Texas?

Online gambling is prohibited in Texas at present, so no licence currently permits it. As recorded: For the Lottery sales agent licence: Application fee set by the executive director at least sufficient to cover TDLR and Department of Public Safety processing costs (s. 466.152); retailers receive a commission of not less than 5% of ticket sales. Last verified 23 Sept 2026.

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M&A

23 Oct 2026

Chickasaw Nation's Global Gaming Solutions Buys Wyoming Horse Racing and Over 1,500 HHR Machines

The Chickasaw Nation's commercial arm now owns 13 Horse Palace sites, live racing at Sweetwater Downs, and the operator behind about 35% of Wyoming's $2.49 billion historical horse racing handle. No price was disclosed, and the deal lands months after a bill to cap the machines died.

Prediction Markets

22 Oct 2026

Ted Cruz Plans a Bill to Put Sports Prediction Contracts Under State and Tribal Control

The Senate Commerce Committee chairman intends to file legislation after the 3 November midterms that would bar gambling-linked event contracts, sports included, unless a state or tribe authorises them, Bloomberg Law reports. No text, bill number or co-sponsor is public yet, and the window before this Congress ends is short.

Regulatory

14 Oct 2026

US Treasury Sanctions a Nuevo Laredo Racetrack It Says the Cartel del Noreste Controls

The Office of Foreign Assets Control has designated Club La Molienda, a horse racetrack on the edge of Nuevo Laredo that Treasury says shared a betting arrangement with Casino Centenario, the casino it accused in April of serving as a drug stash house and a place where the cartel tortured its enemies. It is the second US action in six months to put a Mexican gambling venue on the sanctions list.

Corporate

9 Oct 2026

Eric Persson Says He Will Buy Back Maverick's Two Elko Casinos to Keep 239 Nevada Jobs

Ten days after closure notices gave the Maverick Casino Hotel and the Gold Country Inn until 30 November, Maverick's co-founder says he is buying both back and will rehire every worker. No price, buyer entity or court filing for the deal has been made public, and Nevada's regulator says only that it is "very involved".

Corporate

7 Oct 2026

Maverick Files to Close Its Two Elko Casinos on 30 November, With 239 Nevada Jobs at Risk

A week after the same notices went out in Washington, Maverick's Nevada arm has told the state it will permanently close the Maverick Casino Hotel and the Gold Country Inn in Elko unless a new operator takes them over. Court filings show both sit in the sale-leaseback portfolio that drew no bids in the company's bankruptcy.

Corporate

6 Oct 2026

Eric Persson Says He Will Buy Back Eight Maverick Card Rooms, Keeping 850 Washington Jobs

A week after closure notices put eight Washington card rooms on course to shut on 30 November, Maverick Gaming's founder says he is buying them out of the bankruptcy and that the deal will close within three weeks. No buyer entity, price or court filing for the sale has been made public, and a new owner needs the state's gambling licence.

Corporate

2 Oct 2026

Maverick Files to Close Eight More Washington Card Rooms, With 850 Jobs Going on 30 November

Notices filed with Washington's Employment Security Department put eight of Maverick's card rooms on course to close at the end of November, on top of two in Tukwila on 1 November. The company says a buyer in its Chapter 11 case could keep some open, and one Pasco councilman says that is already happening.

Prediction Markets

21 Sept 2026

IGA's Rocha: "DraftKings Has to Come Down Like a Piñata" Once Kalshi Loses

The Indian Gaming Association chair told Gaming America that more tribal lawsuits are coming after the Ninth Circuit, that DraftKings' tribal partnerships in Connecticut, Arizona and Washington are at risk over its prediction-market push, and that the Supreme Court will rule against Kalshi. CNIGA's James Siva: "We're keeping track."

Sports Betting

21 Sept 2026

EKG Puts NFL Wagering at $40bn This Season With Prediction Markets Taking 21%

Eilers & Krejcik's first combined forecast credits sportsbooks with $31.7 billion and the exchanges with an $8.4 billion "handle analog", a translation of exchange volume into sportsbook terms that it has not published. The AGA sees sportsbooks flat at $29.5 billion; Week 1 data suggests the exchange share may be larger.

All 16 articles on Texas (USA) →

Source tiers. Tier 1: the law, official gazette, licence register or regulator itself. Tier 2: other official sources such as ministries, parliaments, courts and statistics agencies. Only tier 1 and tier 2 sources can support a fact on their own.

1. Texas Constitution, article III, section 47 (lotteries prohibited; exceptions for charitable bingo, charitable raffles and state lotteries)

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
2. Texas Constitution, article VIII, section 24-a (individual income tax prohibited)

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
3. Texas Constitution, article XVII, section 1 (proposed amendments; two-thirds vote and submission to voters)

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
4. Government Code s. 301.001 (regular session convenes on the second Tuesday in January of each odd-numbered year)

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
5. Texas Penal Code Chapter 47, Gambling

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
6. Texas Penal Code Chapter 12, Punishments (ss. 12.21 to 12.23, misdemeanour classes)

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
7. Government Code Chapter 466, State Lottery Act (as amended by SB 3070, 2025)

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
8. Occupations Code Chapter 2001, Bingo Enabling Act

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
9. Occupations Code Chapter 2002, Charitable Raffles

   Texas Legislature (Texas Constitution and Statutes)

   Tier 1Accessed 23 Sept 2026
10. Occupations Code Chapter 2021, Texas Racing Act, general provisions and definitions

    Texas Legislature (Texas Constitution and Statutes)

    Tier 1Accessed 23 Sept 2026
11. Occupations Code Chapter 2025, Texas Racing Act, licensing

    Texas Legislature (Texas Constitution and Statutes)

    Tier 1Accessed 23 Sept 2026
12. Occupations Code Chapter 2027, Texas Racing Act, wagering

    Texas Legislature (Texas Constitution and Statutes)

    Tier 1Accessed 23 Sept 2026
13. Occupations Code Chapter 2028, Texas Racing Act, pari-mutuel pools, purses and fees

    Texas Legislature (Texas Constitution and Statutes)

    Tier 1Accessed 23 Sept 2026
14. Occupations Code Chapter 2033, Texas Racing Act, criminal and administrative penalties

    Texas Legislature (Texas Constitution and Statutes)

    Tier 1Accessed 23 Sept 2026
15. History for 89(R) SB 3070 (Hall): abolishment of the Texas Lottery Commission and transfer of the lottery and charitable bingo to the Texas Commission of Licensing and Regulation

    Texas Legislature Online

    Tier 1Accessed 23 Sept 2026
16. History for 89(R) SJR 16 (Alvarado): constitutional amendment authorising destination resort casinos and sports wagering and creating the Texas Gaming Commission

    Texas Legislature Online

    Tier 1Accessed 23 Sept 2026
17. History for 89(R) HJR 134 (Harless): constitutional amendment authorising the legislature to legalise wagering on certain sporting events

    Texas Legislature Online

    Tier 1Accessed 23 Sept 2026
18. History for 89(R) HJR 137 (Geren): constitutional amendment authorising casino gaming and sports wagering

    Texas Legislature Online

    Tier 1Accessed 23 Sept 2026
19. History for 89(R) SB 517 (Middleton): gambling criminal offences and a defence to prosecution; increasing criminal penalties

    Texas Legislature Online

    Tier 1Accessed 23 Sept 2026
20. Senate Committee on State Affairs: interim charges, including Closing Gambling Loopholes

    Texas Senate

    Tier 1Accessed 23 Sept 2026
21. Senate Committee on State Affairs, notice of public hearing, 15 September 2026 (Closing Gambling Loopholes: prediction markets)

    Texas Senate (Texas Legislature Online)

    Tier 1Accessed 23 Sept 2026Published 15 Sept 2026
22. Senate Committee on State Affairs, notice of public hearing, 14 September 2026 (monitoring of SB 3070)

    Texas Senate (Texas Legislature Online)

    Tier 1Accessed 23 Sept 2026Published 14 Sept 2026
23. Texas Lottery (TDLR programme page)

    Texas Department of Licensing and Regulation

    Tier 1Accessed 23 Sept 2026
24. Charitable Bingo (TDLR programme page)

    Texas Department of Licensing and Regulation

    Tier 1Accessed 23 Sept 2026
25. About Charitable Bingo Operations

    Texas Department of Licensing and Regulation, Charitable Bingo Operations Division

    Tier 1Accessed 23 Sept 2026
26. Bingo for Beginners and FAQ (minimum age, history and totals)

    Texas Department of Licensing and Regulation, Charitable Bingo Operations Division

    Tier 1Accessed 23 Sept 2026
27. Summary of Proposed Rule Changes: 16 TAC Chapter 140, Administration of Lottery and Charitable Bingo

    Texas Department of Licensing and Regulation

    Tier 1Accessed 23 Sept 2026Published 27 Jul 2026
28. Texas Lottery official website

    Texas Department of Licensing and Regulation (Texas Lottery)

    Tier 1Accessed 23 Sept 2026
29. Texas Lottery History and Milestones (2025: courier policy statement, courier rules, SB 3070 transfer to TDLR)

    Texas Department of Licensing and Regulation (Texas Lottery)

    Tier 1Accessed 23 Sept 2026
30. Yearly Sales Summary, year ending 31 August 2026 (unaudited, prepared 11 September 2026)

    Texas Department of Licensing and Regulation (Texas Lottery)

    Tier 2Accessed 23 Sept 2026Published 11 Sept 2026
31. Summary Financial Information: sales, prize expense and transfers to the state, FY 1992 to FY 2026 (FY 2026 unaudited, through August 2026)

    Texas Department of Licensing and Regulation (Texas Lottery)

    This document records $31,789,739 transferred to the Texas Veterans Commission in FY 2026; the Supporting Education and Veterans page states $31.7 million. The itemised figure is used.

    Tier 2Accessed 23 Sept 2026
32. Supporting Education and Veterans (Foundation School Fund and Fund for Veterans' Assistance transfers)

    Texas Department of Licensing and Regulation (Texas Lottery)

    Tier 1Accessed 23 Sept 2026
33. Annual Financial Report for the Year Ended August 31, 2025, and Independent Auditor's Report

    Texas Lottery Commission

    Tier 2Accessed 23 Sept 2026
34. Texas Racing Commission

    Texas Racing Commission

    Tier 1Accessed 23 Sept 2026
35. Race Parks and County Fairs; 2026 live race dates

    Texas Racing Commission

    Tier 1Accessed 23 Sept 2026
36. Opinion No. KP-0057, the legality of fantasy sports leagues under Texas law

    Office of the Attorney General of Texas

    Tier 1Accessed 23 Sept 2026Published 19 Jan 2016
37. Attorney General Ken Paxton Announces Investigation into Suspicious and Potentially Illegal Lottery Winnings

    Office of the Attorney General of Texas

    Tier 1Accessed 23 Sept 2026Published 26 Feb 2025
38. Ysleta del Sur Pueblo v. Texas, No. 20-493 (U.S. 15 June 2022), slip opinion

    Supreme Court of the United States

    Tier 1Accessed 23 Sept 2026Published 15 Jun 2022
39. Topic no. 419, Gambling income and losses

    Internal Revenue Service

    Tier 1Accessed 23 Sept 2026