Will Texas Legalize Sports Gambling

 

The United States Supreme Court produced a landmark decision last week, one which eliminated the federal ban on wagering on sporting events. The majority decision leaves the decision to allow, or ban, sports gambling to the individual states.

Many states are chomping at the bit to quickly establish ways to capitalize on the ruling. Despite being a bastion of individual rights relative to most states, Texas is not likely to make sports wagering legal anytime soon.

Probably no sports betting in Texas soon Any expansion of gambling has generated intense opposition in the Republican -controlled legislature for years. Casino and Texas fantasy sports bills have a long history of going nowhere. State law does allow for bingo, lottery and horse betting.

  • Legal Online Sports Betting Age in Texas. As previously mentioned, the Texas sports betting activities are currently illegal and no official minimum age has been set. As marijuana, medical or recreational has not been legalized, there is no age to be compared with.
  • Texas Could Legalize Sports Betting in State by 2020 Texas Could Legalize Sports Betting in 2020, Despite Opposition If there is one thing that is true in Texas, it is that lawmakers in the state do not like casinos. Countless attempts over the years to bring casinos into the state have failed when proposed.
  • Thanks to the Supreme Court, sports gambling is no longer just reserved for places in Nevada. Permitting sports gambling is now a state decision, which means Texas will fight this, too.
  • House Joint Resolution 61 seeks a referendum on Nov. 5 in which voters statewide would be asked to amend the Texas Constitution to authorize “the Legislature to legalize sports betting in this.

The state of Texas remains one of the stalwarts in refusing to allow casino games of any kind. Texas was one of the last states to get on board with having a lottery and banned horse track betting for years. Gambling remains a political football which the Texas legislature continues to intercept at every turn they can.

The Houston Texans have not released any official statement, but the idea of the team facilitating legal wagering during games at NRG Stadium seems remote. Texans fans who want to bet $10 on DeAndre Hopkins catching more than 6 passes, or $20 that Houston will cover the spread against the Colts, will need to do what most Houstonian gamblers do now: drive to Lake Charles, Louisiana or Biloxi, Mississippi, where the parking lots are perennially chock full of cars with Texas plates.

Texas

The Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in May 2018 in Murphy v. NCAA, holding that PASPA “regulate[s] state governments’ regulation of their citizens,” which is not a power given to congress by the Constitution. As a win for New Jersey and other states seeking to legalize sports betting, the Supreme Court held that PASPA was a violation of the 10th Amendment, which stipulates that powers not given to the federal government or expressly taken away from states are given to the states. Basically, congress is able to regulate sports betting directly, but cannot tell the states how to regulate the industry.

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What is PASPA & What Did it Do?

PASPA made several activities unlawful. Specifically, a state could not “sponsor, operate, advertise, promote, license, or authorize” by law a “lottery, sweepstakes, or other betting, gambling, or wagering scheme based on competitive sporting events.” 28 USC §3702(1) and (2). Sports gambling on its own was not a federal crime, but the Attorney General and professional or amateur sports organizations were legally allowed to sue the state civilly and join violations together. Four states were allowed to continue operations that had existed in those states at the time PASPA was passed. Additionally, New Jersey was allowed to set up a gambling scheme so long as it did so within a year of PASPA becoming law.

The following activities based on competitive sporting events were not allowed:

  • Sponsorship, operation, advertisement, promotion, licensing or authorization
  • Lottery, sweepstakes or other betting, gambling or wagering scheme

New Jersey passed the law that became the crux of the SCOTUS case in 2014. That law repealed New Jersey’s prohibitions against sports-gambling for individuals over 21 years old, so long as the bets were placed at a casino, gambling house, or horse track in Atlantic City, and only on sporting events. Gambling on college sports or events in the state were not part of the allowed activities.Although New Jersey was allowed to set up a gambling scheme, it failed to do so within the permitted year. The state then decided that it did want to legalize sports gambling. The problem was that New Jersey took years to come to that decision – long after the period of time allowed by PASPA. As a result, the NCAA and several major sports leagues sued New Jersey on a PASPA violation. New Jersey argued that PASPA violated constitutional law, specifically anticommandeering principles, by prohibiting states from changing or striking down laws, in this case laws that pertained to sports betting.

What Were the Odds?

Proponents of legalizing sports betting argued that legalizing the activity will generate revenue for states and reduce the strength of illegal betting organizations. Opponents of legalization argued that legalizing sports gambling will push people toward gambling and encourage unreasonable spending and financial practices.

The Supreme Court on Sports Gambling

The Supreme Court held that anticommandeering is a core right in the Constitution and equates to congress being unable to directly order the states to comply with something. Anticommandeering is just what is sounds like. The doctrine prevents the federal government from imposing restrictions on or “commandeering” state governments, especially in terms of laws that aim to target state activity by controlling or creating mandatory duties for the state legislatures or state officials. The Supreme Court stated that the federal government and the states both have sovereign powers that support our system of “dual sovereignty,” Murphy v. NCAA, (citing Gregory v. Ashcroft, 501 U. S. 452, 457 (1991)).

The Supreme Court held that congress did not have the authority to ban states from regulating sports gambling within their own state. PASPA was found to be a violation of the anticommandeering rule because it gave direct orders to state legislatures and prohibited states from authorization activity. As a result, the Supreme Court did not even need to evaluate whether New Jersey violated the PASPA anti-licensing provision.

Ultimately, the Supreme Court held that while Congress may regulate sports gambling by creating a federal set of guidelines for the industry, it could not force states to regulate their own industry.

Are There Larger Implications Within & Outside of Sports Betting?

Will Texas Legalize Sports Gambling Bills

Will Texas Legalize Sports Gambling

Yes. Financially, allowing legal sports betting could bring a huge revenue influx to states that choose to allow it. For example, in Nevada, Las Vegas pulls in several billion dollars a year through sports betting. The illegal sports betting market is estimated at up to $100 billion dollars. By legalizing, this market would shift to legal venues and generate money for the state.

Will Texas Legalize Sports Gambling Laws

There are also non-gambling implications of the law. For example, Amy Howe, a writer for SCOTUSblog, wrote that supporters of “sanctuary-cities” may use this ruling as a precedent to not follow directions, rules, and laws set forth by immigration officials.

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Will Texas Legalize Sports Gambling Losses

Can Congress Do Anything to Ban or Regulate Sports Betting?

Probably. Even though PASPA has been struck down and is no longer valid law, Congress could create a set of federal rules or guidelines that would give rise to uniformity among states.

What Exactly Does this Mean?

Will Texas Legalize Sports Gambling

SCOTUS struck down the existing sports-gambling restriction that prevented states from regulating their own sports-betting industries. Now, states are free to engage in modifying, creating, or otherwise affecting sports-related gambling in their own state. Congress may move to create legislation to regulate the industry as a whole but lacks the power to dictate how states are to run their own sports-betting industries.