I remember in the late 1990s and early to mid-2000s, I used to play poker at a lot of the underground poker rooms in Dallas. Many of them had been in business for years. At some point, though, they started getting raided by the cops.
Texas Casino Guide. Texas was the 28th state to join the United States and has earned a reputation for being one of the most business-friendly states in the country. Yet, to this day, Texas remains the state least likely to legalize online gambling in the US. Currently, online gambling is illegal in The Lone Star state. Texas Gambling Laws. In Texas, online gambling is only allowed for off-track horse racing bets. Additionally, Daily Fantasy Sports operators also accept TX players. However, they are considered illegal by the Attorney General and are therefore technically illegal. Two operators, FanDuel and DraftKings, are still accepting Texans. “The Texas Constitution clearly prohibits gambling, except for four highly limited exceptions,” Rodger Weems, state chair of Stop Predatory Gambling Texas, told House members recently. Gambling Age in Texas. The current minimum gambling age in Texas is 21 for land-based casinos and online gambling and 18 for horse racing, lottery and online bingo. Nevertheless, we should remind you that there are only three functioning casinos in the state and they are owned by the Kickapoo tribe. Online gambling is illegal.
This continued until all the places I knew about had been closed. I vaguely understood that there were underground casinos in Dallas, too, but I didn’t play at any of them. I know that many bars and gas stations had the equivalent of slot machines – in Texas, they’re called 8-liners.
At one time, most of the mid-sized cities had even opened up so-called “game rooms” featuring these 8-liners. Most of them are now closed, too. The only one I ever played in with any regularity was in Farmersville.
It was fun, but you couldn’t win real cash there. European roulette payout. You could only cash in points for merchandise, most of which looked like it had been bought on sale at Dollar General. I remember gardening tools and a 6-pack of canned corn.
And it made me wonder why the Texas gambling scene doesn’t have real casinos.
In this post, I’m going to delve into that subject a little more.
Texas Has Strict Gambling Laws
The main reason Texas doesn’t have casinos is because casino gambling – all types of casino gambling – are illegal in the state of Texas. In fact, Texas has some of the strictest gambling laws in the country.
The strict gambling laws are a strange phenomenon for the state which lends its name to the most popular form of poker in the country – Texas holdem.
This all stems from Penal Code 47.01, which is the statute making gambling illegal throughout the state.
The only exceptions are bets on dog and horse racing.
Not only that, but the law specifically enumerates which gambling activities are illegal in the state.
Which Types of Gambling Are Illegal in Texas?
If you’ve read any of my previous posts, you already know that gambling has any number of subcategories. The state of Texas agrees. After all, they’ve enumerated and listed the specific types of gambling which are illegal throughout the state.
The first kind of gambling that’s illegal in Texas is the casino game. Any kind of game played in a casino is illegal in Texas, and this includes real money blackjack, craps, roulette, slots, and video poker. This also applies to online gambling, although I’ve never heard of anyone getting in trouble for playing online casino games.
The only exception is if you’re on Native American land. I’ll have more to say about this later in the post. Stay tuned.
Sports betting is also illegal, with the exceptions of betting at the dog track or the horse track. Betting on sports is punishable by a $500 misdemeanor fine. It applies to online as well as in-person or over-the-phone betting.
This didn’t seem to slow down any of the bettors at my local bar who placed wagers with their local bookie.
Texas also has laws related to so-called social gambling. This is how Texas categorizes bingo games or charitable raffles.
These activities are legal when operated for the benefit of charities in the state. Otherwise, they’re illegal.
Strictly speaking, it’s even illegal to play in a friendly home poker game.
What About the Lucky Eagle Casino?
If you’ve heard of a Texas casino called the Lucky Eagle Casino, then you’ve found one of the rare exceptions to the statement that there are no casinos in Texas.
The Lucky Eagle Casino is open Sunday through Thursday from 10 a.m. to 2 a.m., and they stay open until 4 a.m. on Friday and Saturday night.
Quick hit fan page. They have over 1200 slot machine games, but they also offer table games including blackjack, craps, roulette, and even keno. They have over 55,000 square feet of casino space with both smoking and non-smoking sections.
Besides the standard casino table games, Lucky Eagle offers progressive table games like Ultimate Texas Holdem and Emperors Challenge (a pai gow poker variant). They also offer Mississippi Stud, which is one of my favorite new table games. In addition they have a surprisingly robust number of blackjack games available, including both 2-deck and 6-0deck games. They even offer 21 + 3 and Spanish 21 games.
I saw no mention of baccarat on their site, but I suspect baccarat isn’t a big draw in Texas.
Come on com. Lucky Eagle also hosts bingo games in their event center except on Friday and Saturday night.
The keno lounge offers multiple keno games, including speed keno and 50 cent keno.
Why is the Lucky Eagle Casino allowed to operate in Texas?
They’re a Native American casino, owned by the Chehalis Tribe, which has a compact with the state government allowing them to operate.
What About Naskila Gaming?
Naskila Gaming is another notable exception to the “no casinos in Texas” generality. It’s another example of a Native American casino. They’re owned by the Alabama-Coushatta Tribe.
They’re located on the Indian reservation near Livingston, Texas, and they’re open 24/7.
They only offer Class II slot machines, and they have about 800 games to choose from.
Naskila Gaming also has multiple restaurants onsite, including a Nathan’s Hot Dogs and a Mexican café. They even have a grill serving traditional American fare.
There’s some controversy related to whether they’ll be able to continue operating in Texas. If you visit their website, you’ll see notices asking their patrons to support HR 759 to keep them open.
HR 759 intends to clarify that Naskila Gaming IS acting legally because they’re on tribal land.
Texas has three Native American tribes that are legally recognize by the federal government. The Kickapoo Tribe is the only one currently allowed to offer Class II gaming.
HR 759 aims to correct that inequity. And, just to be clear, it doesn’t make it legal for Naskila Gaming to offer blackjack, craps, or roulette. They must stick with the electronic bingo gambling machines.
The legislation also authorizes the Ysleta del Sur Pueblo Tribe to offer gaming on their reservation.
What About Casino Cruises?
One way casino companies circumvent casino gambling laws is to offer casino gambling on cruise ships. These ships generally go out far enough in the water to get outside the jurisdiction of the state where they’re docked. Several casino cruises are available from Texas ports.
These include Carnival Valor Casino, Carnival Breeze Casino, Carnival Freedom Casino, and Jacks or Better Casino.
Most of cruise ships have a couple hundred slot machines and a dozen or so table games. They usually offer poker games, too.
The last time I went on a casino cruise, I played Texas holdem the entire time.
It’s common knowledge among those in the know that the slot machine payback percentages on casino cruises are lousy.
Where Else Can You Gamble in Texas?
You’re legally allowed to bet on dog racing and horse racing in Texas. You must do so from the site itself, though. You have the following tracks to choose from:
- Gulf Greyhound Park
- Lone Star Park at Grand Prairie
- Sam Houston Race Park
- Valley Race Park
Of these, the only one I’ve visited was Lone Star Park at Grand Prairie. They have no casino facilities, but there’s enough horse betting action here to keep even the most avid action junkie entertained for hours (or days).
Lone Star Park at Grand Prairie
Admission to Lone Star Park is only $5, and the gates open at 5 p.m. The first race is run at 6:05 p.m.
They offer stakes races where they’ll either add money to the prize pool or they’ll have a minimum guaranteed prize pool.
Like a casino, Lone Star Park has a rewards program. It’s comparable to a slot machine players’ club at a casino.
You earn a point for every dollar you wager, but you also get additional points by placing wagers with the self-serve facilities. You also get two bonus points per dollar by betting on Lone Star Park and Remington Park races.
When you spend money at the concessions stand or in the gift shop, you get a point for every dollar you spend. You can redeem these points later.
They have a variety of rewards available, but you can get an idea of what the points are worth by looking at the vouchers and food and beverage credits.
You can cash in 10,000 points to get a $10 food and beverage credit.
You can also cash in 20,000 points to get a $20 mutuel voucher. The ratio is the same for $50 and $100 vouchers, which would require 50,000 points and 100,000 points each.
You can also get greater casino comps by achieving VIP status, and they offer double points on everything on Tuesdays.
I should point out that only a handful of gambling activities — including blackjack, poker, and sports betting — offer the opportunity to get a mathematical edge. Betting on horses – if you’re good at it – also offers that opportunity.
Conclusion
I’m not sure who said there are no casinos in Texas. There are at least two, and more depending on whether you count the racetracks and cruises.
You also have any number of businesses offering the equivalent of slot machine games called 8-liners.
I think the state government should go ahead and legalize and regulate gambling throughout the state. Right now, they’re just leaving all that revenue on the table.
In contrast to other states that have either legalized online gaming or taken significant steps towards doing so, Texas has made no progress whatsoever towards legalizing any type of gaming in the state. There are little to no prospects at the current time for Texas to legalize online gaming. The gambling landscape is Texas is sparse, at least from a legal perspective, due to cultural factors inherent in Texas.
Texas Sports Betting Q&A 2020
Will Texas legalize sports betting?
Where is the closest legal sports’ betting to Texas?
What are the Texas sports betting laws?
Does Texas allow Daily Fantasy Sports?
What are the taxes in Texas on gambling winnings?
Frequently Asked Questions
Will Texas legalize sports betting?Legislation to legalize sports betting is currently on the books, but without a concrete timetable. However, with five professional franchises in the Dallas area and another four in Houston, most feel it is a matter of time. With over 28 million residents, the sports betting market is huge.
Where is the closest legal sports’ betting to Texas?Texans in the western panhandle and in the eastern parts of the state can cross state lines into New Mexico and Arkansas respectfully. These are the two closest physical locations where a Texas resident can legally bet on sports games.
What are the Texas sports betting laws?Under the penal code of Texas, most gambling is illegal. Texas residents can gamble at Native American casinos in the state. Currently, there are ongoing legislative discussions to legalize sports betting, but to date, the law lists it as at least a misdemeanor crime.
Does Texas allow Daily Fantasy Sports?This question depends on who you ask. According to the Texas State Attorney General, DFS contests violate the state’s laws against gambling. There is a pending legal case involving DFS providers who are still accepting Texas residents for DFS contests.
What are the taxes in Texas on gambling winnings?Gambling outside the Native American casinos is illegal in Texas. Pinpointing the tax rate on any winnings is tough. The state doesn’t have an income tax, so to avoid potential tax evasion problems, the best solution is to apply the state’s so-called sin tax on such things as gambling.
What is Allowed and What Isn’t is 2020
Texas is one of the strictest states in the U.S. when it comes to betting laws. In fact, Texas Hold ‘Em is one of the most popular games in the country, but if you gambled on it in Texas, you could face a misdemeanor charge. Under the penal code, any form of gambling is illegal. Gambling is defined in the state law as any bet based on the notion of winning or losing something based purely on chance. Residents are restricted from betting roulette, blackjack, and poker, both at casinos and online, as long as they are in state property.
ContentsThis said, there are three casinos that operate in lands that are Native American territory inside, or just outside, the Texas border where Texas residents can go to gamble. Texas law does not apply to these lands, and therefore, casino gambling is allowed. Texas is very big, so these three casinos may be very far away from you if you live in the state. There is Naskila Gambling, located in eastern Texas in Livingston. About an hour north of Dallas is the WinStar World Casino and Resort located just over the Texas border in Oklahoma, where casino gambling is legal. The third location is in Eagle Pass in extreme southwest Texas at the Kickapoo Lucky Eagle Casino and Resort.
Sports Betting in Texas
Currently, sports betting is not allowed in Texas. This includes mobile online and gambling. However, horse racing and parimutuels betting are legal in the state, and there are tracks throughout where gambling enthusiasts go to and place wagers. Furthermore, DraftKings and FanDuel are allowed to operate in the state, and fantasy sports enthusiasts are allowed to use those websites to play daily fantasy sports games. However, while you are allowed to play daily fantasy sports, there hasn’t been a bill to regulate it yet. FanDuel has taken the more conservative road and has pulled out of Texas.
Is Betting on the Horizon in 2020?
Within the last six months, Rep. Eddie Lucio filed H 1275, legislation that would authorize and regulate sports betting operations, including mobile and online betting, in the state. The bill requires a referendum that would amend the state constitution. If passed, it would then need to be approved by voters in the November election. House Resolution 61 is also on the House floor, which would authorize betting on professional and collegiate sports. In order to be placed on the ballot for voters in November, two-thirds of both the Texas House and Senate must approve Lucio’s bill. While many consider it a long shot in the near future, if more states continue to pass legislation, Texas will eventually be pressured to pass betting legislation for the first time. In other words, as the nation goes, so will Texas.
Oklahoma Casino Laws Age
Existing Gambling in Texas
While other neighboring states are starting to allow gaming outlets, Texas only has three casinos in the state. Commercial casinos are by law not permitted to operate in Texas. Most of the gaming in Texas is centered on the Texas State Lottery and limited horse racing venues. The three casinos in the state are Native American casinos. Two of these casinos have been the subject of protracted litigation in which the state successfully closed the casinos. These casinos restarted operations on their own after the National Indian Gaming Commission issued a legal opinion stating that these casinos were not illegal. The matter is back in court, where the state has again attempted to shutter the casinos. Texas has undertaken numerous efforts over the years to crack down on what it views to be illegal gambling. In addition, various types of poker rooms have been established where the operator charges players “rental fees” so as not to run afoul of restrictions against receiving money from a pot as an organizer of a game of chance.
The act of gambling is not per se illegal in itself in Texas. Residents of the state wager on DFS and through offshore casinos and no enforcement actions have been taken against them. There is nothing that prohibits these activities. Offering gambling as an operator, however, is illegal in Texas, and the restrictions are extensive. However, these restrictions are not necessarily clear, and they are inconsistently enforced. There is enough gray area in Texas gambling laws that creates some uncertainty for operators to devise new types of gaming that may not necessarily be illegal.
Currently, the black market for gambling in Texas is strong. In addition to the poker rooms, there are slots in Texas that operate either in spite of or with the tacit endorsement of law enforcement. One loophole that is exploited is that some slot machines pay non-cash prizes since the illegality is the payment of cash prizes. This loophole originated from the fact that legislators wanted to ensure that amusement machines that awarded prizes would not be considered illegal gambling.
Other slot machines simply operate behind closed doors. Some counties receive tax revenue from licensing slot machines that may or not be violating the law. The case of slots evidences both the vague nature of Texas laws and the amount of gambling that occurs, notwithstanding the prohibitions in the law.
Oklahoma Casino Law
Prospects for Gaming Expansion
In addition, there are no efforts underway in Texas that would legalize sports betting. Numerous pari mutual venues have expressed an interest in accepting sports wagers if they were to be legalized. Numerous gambling legalization bills have been introduced in the past, but they have never received a vote in the Texas Legislature. Instead, they have been sent to committee where the bills have died. Even in the event that the bills cleared the legislature, they would likely face a veto from the Texas Governor who maintains his opposition to gambling.
Even legislation that would have legalized and regulated daily fantasy sports in Texas never made it out committee and languished after it was introduced. DraftKings & FanDuel do not operate their daily fantasy product in Texas. At this point, Texans are left to hope that demographic changes in the state could ultimately change the political calculus in a way that would permit online and expanded gaming in the state because the current leadership is intractably opposed. Other neighboring states such as Oklahoma, New Mexico, and Louisiana have expanded gaming regardless of the political bent of those that control the levers of power in the states.
Notwithstanding, studies that show that expanded gaming can have a $1.7 billion impact on the Texas economy, political forces in the state vehemently oppose gaming. The black market in the state is already estimated at close to $2 billion. The bulk of the opposition to gambling is based on moral and religious objections to wagering. In addition to opposition based on moral grounds, some Texas opponents of gambling claim that expended wagering would lead to greater spending on social programs and regulation. Interestingly enough, the Texas Attorney General signed a legal brief supporting New Jersey in the case of Murphy v. NCAA, but his support should not be interpreted as an endorsement of gambling. Instead, he viewed the federal ban on sports wagering as an encroachment on state’s rights.
It is unlikely that legal gaming expansion will come to Texas anytime soon, and little can change that reality even though gambling is already occurring. Perhaps if the state receives evidence that Texas residents are traveling outside of the state to gamble, a movement would begin to expand gaming in Texas to keep revenues within the state. That, however, is doubtful to occur. As is, Texas is losing potential revenues as its residents are betting offshore and illegally within the state, and that revenue could be taxed. Control of the state government would need to change hands at this point in order for gambling to be expanded in any form in the state. The best possible outcome for gambling proponents at this point is that voters are able to decide the question of gaming expansion in a referendum.
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