Renewed Efforts in Texas and South Carolina to Legalize Sports Betting

Lawmakers in Texas and South Carolina are taking another swing at legalizing sports betting, introducing new proposals aimed at reshaping gambling regulations in their states. Despite the uphill battle, these measures signal a determined push to bring sports wagering into the fold during legislative sessions.

Texas Proposes Constitutional Amendment

In Texas, Democratic Senator Carol Alvarado introduced t Resolution 16, which seeks to amend the state constitution to permit both sports betting and casino gaming at designated “destination resorts.” The proposal outlines the need for legislative clarity on whether sports betting would occur in person, online, or both. As defined in the resolution, sports betting involves “placing a wager on the outcome of a live sporting event, as defined by general law.”

The plan identifies specific regions for casino development, allowing for establishments in seven locations: two in the Dallas-Fort Worth-Arlington area, two in the Houston-The Woodlands-Sugar Land area, and one each in San Antonio-New Braunfels, Corpus Christi, and McAllen-Edinburg-Mission.

To ensure substantial investment, all license holders would be required to meet minimum spending thresholds for their developments.

Beyond gambling, the resolution aims to “reform and the horse racing industry.”

It mandates that all casino licensees be either licensed racetrack associations or individuals designated by these associations. Moreover, the measure proposes a 15% tax on gross casino gaming revenue, with a portion allocated to horse racing purse money, and introduces an undefined sports wagering tax to be specified by general law.

Political Hurdles in Texas

Even if ed by the legislature, the amendment would need voter approval in a statewide referendum slated for November 2025. However, history suggests challenges ahead. A similar resolution introduced by Alvarado in 2023 stalled during the legislative session. Republican Lieutenant Governor Dan Patrick has also expressed resistance, indicating he would only bring gambling legislation to a vote with majority from the GOP Senate caucus. Competing gambling bills may further complicate the path forward.

Meanwhile, sports betting, and casino gambling.

Rutherford’s resolution suggests all wagering would occur at physical locations, with revenue directed toward infrastructure projects such as highway and bridge maintenance. Similar to Texas, the measure must the legislature before being put to voters in a general election.

Another initiative, House Bill 3625, known as the “South Carolina Sports Wagering Act,” proposes legalizing online sports betting. This bill enjoys bipartisan sponsorship and may have better odds of success. It outlines a licensing cap of eight operators, with each required to pay a $100,000 application fee and a $1 million licensing fee. Operators must also demonstrate activity in at least five other states. Under the legislation, a 12.5% tax on adjusted revenue would be collected by the state.

Challenges and Prospects

Both states have seen previous attempts to legalize sports betting falter. In South Carolina, House Bill 3749, introduced in January 2023, failed to gain traction in committee. Nevertheless, the bipartisan nature of the new proposals in South Carolina could give them a stronger chance of advancing.

The legislative sessions in Texas and South Carolina are set to begin on January 14, 2025. As lawmakers prepare to debate these measures, the future of sports betting in both states hangs in the balance.

Source:

”Longshot sports betting, casino bills filed in Texas, South Carolina”, cdcgaming.com, December 14, 2024.