Texas Sports Betting Legislation is Got an unexpected boost in 2021.
Recent news suggests that the phrase “Everything is bigger in Texas” will apply to sports betting. Big states like California and New York are pushing plans that are halved.
Texas, on the other hand, is exploring the possibility of a groundbreaking plan that will include strong support from professional teams in the state. Chris Krafcik of Eilers and Krejcik Gaming, a leading gaming research and advisory firm, reports on bills that would be massive for Texas.
The situation is of course fluid, but 3 of the Big 4 countries are on very different routes. CA will likely only go retail, NY is currently aiming for a lottery-regulated online model with a small number of operators, and TX is aiming for very broad online authorization.
– Chris Krafcik (@CKrafcik) January 20, 2021
This reported bill affects many of the characteristics that can create a robust sports betting market in Texas – multiple skins, high royalties, and a hefty 10% tax. This is exactly the kind of legislation that would encourage competition, which is very important to Texans. Michigan online sports bettingwhich has similar conditions and great expectations, will start this Friday. Such competition leads to greater choice for consumers and can ultimately drive illegal bookmakers and offshore books out of the market.
These are the main features of the bill, but this is just a start for sports betting in Texas.
It is easier said than done to make sure that governance, lawmakers and stakeholders come together on a plan that works.
Different plans in New York and California
New York and California are two states that still have a lot to do when it comes to sports betting. Texas, New York, California and Florida are the “big four” when it comes to sports betting. They are the four largest states by population and all have major professional sports franchises.
New York is currently at a crossroads. While lawmaker and Governor Andrew Cuomo all want online sports betting to become a reality in New York, they disagree on how to move forward.
U.S. State Senator Joseph Addabbo Jr. is a leader in legislation that includes up to 14 skins, also known as licenses, for online sports betting providers. Governor Cuomo has a plan that could limit the state to a single operator, reducing competition and consumer choice.
California is taking a path that would be even more restrictive than that of New York. Right now, online sports betting is still years away from reality in California. Instead, retail bets would be the only place Californians could place bets.
New York currently only allows sports betting in stationary sports betting in the hinterland. The Empire State is a prime example of how restricting legislation to personal sports betting is keeping large segments of the population from participating in the action. New York’s latest move to pass online sports betting shows that the sports betting model is only out of date for retailers. The vast majority of sports betting takes place on mobile devices.
Fortunately, Texas is using the examples of New York and California and is pushing a model closer to New Jersey’s wide open market. This means that Texans have a number of options for mobile sports betting.
The support of professional sports teams
Again, it should be noted that Texas is still a long way from passing sports betting laws, but pressure from professional sports teams could help speed the process up. As Krafcik notes, the Cowboys and Mavericks reportedly support the current bill.
It’s no surprise that professional sports teams in Texas are backing this bill. Maverick’s owner Mark Cuban has long been a proponent of legalizing sports betting.
“It has doubled the value of professional sports franchises in a second,” Cuban said following the 2018 PASPA Supreme Court decision happened in the stadiums. This will increase viewership for our largest customers online and on TV. It helps traditional TV because it has much lower latency, while online it has much higher latency because of the cachet. “
While it’s only the Cowboys and Mavericks who support their vote right now, there’s no reason to believe the other teams in Texas are against this legislation. The potential for the state’s sports betting is huge and 2021 could be the year we see legitimate progress in the Lone Star State.