Gambling is illegal in Texas. But state law offers a defense against prosecution when gambling takes place in a private place where no person receives an economic benefit beyond personal winnings. The gambling laws in Texas are clear in that they prohibit both sports betting and casino gaming. According to the Texas State Law Library, Penal Code §47.02 a person commits an offence if he: – Makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest. Gambling boats have operated at times out of Texas ports, taking passengers on one-day 'cruises to nowhere' in international waters, where there are no gambling laws. The casino cruise industry developed in other states in the early 1980s, but was a latecomer to Texas because of a state law prohibiting the docking of ships with gambling.

Legal gambling in Texas is limited to betting on horse and dog races, state-sanctioned lottery games, and charitable gaming.

The local Native American tribes operate two medium-sized casinos, but the government has been trying to eliminate this form of gambling from the state since 2002, shutting down one major casino and forcing the remaining two to limit the scope of their operations on several occasions.

Texas Gambling Law Summary

Gambling in Texas is defined as an “agreement to win or lose something of value solely or partially by chance,” and the Texas Attorney General’s Office made it clear in the early nineties that this also applies to internet games. Opinion no. DM-344 issued by then-Attorney General Dan Morales declares that local law enforcement officials are expected to go after individual players.

The definition of “gambling device” (Section 47.01 (4) clarifies the law further. Making illegal bets is a misdemeanor in Texas (Section 47.02). Those who break the law could face a half-dozen separate charges. Gambling promotion (Section 47.03) is a misdemeanor, and covers operating, promoting, processing bets and selling lottery chances. Online Gambling Options in Texas History of Texas Gambling Laws Further Reading On Texas Gambling Law Texas Gambling FAQ Texas has come a long way in terms of the freedom to gamble. Just a few decades ago, Texas didn’t have a lottery, had no charitable gaming laws, no allowance for social gambling, and no casinos.

The same opinion states that people who engage in online gambling can’t argue that their activities fall under the exemption meant to facilitate private home games because gambling sites are available to the broader public. Placing an unlawful bet is considered a class C misdemeanor regardless of the gambling form.

Gambling in Texas is covered by Texas Penal Code PEN 47.01 et seq. and Texas Revised Civil Statutes CIV STAT 179e et seq. The minimum gambling age is 18.

Online Gambling in Texas

The current political climate makes it impossible for Texas to legalize internet gambling in the foreseeable future, and the state’s regulations prevent local iGaming enthusiasts from playing on offshore sites without risking prosecution.

According to Section 47 of the Texas code, participating in any form of illegal gambling is a misdemeanor. Gambling in your home is an exception to this rule, but it’s hard to say whether this exception extends to online play. Aside from the lottery-related regulations, Texas gambling-related statutes simply don’t mention online play, and the authorities have never tried prosecuting someone for playing at an offshore iGaming site.

Texas Casinos

Casino-style gambling is entirely illegal in Texas outside of Indian reservations. Even worse, local authorities are doing everything in their power to shut down tribal gaming too. In 2016, they successfully forced the Speaking Rock Casino in El Paso to go out of business. Despite this toxic legal environment, two Indian casinos continue to offer their services to local gambling enthusiasts. The larger venue – the Kickapoo Lucky Eagle Casino – is located in Eagle Pass and operates over 3,000 slots. The second casino – the Naskila Entertainment Center – is located in Livingston and offers around 300 games. Playing casino games over the internet is prohibited.

Texas Poker

Even though Texas Hold ’em is named after the Lone Star State, playing poker or any other card games for money is just as illegal there as playing slots or other luck-based casino games. The local poker scene centers around the tribal casinos and illegal poker rooms operating out of bars and strip joints. There aren’t any state-sanctioned online poker sites operating in Texas at the moment, and playing on offshore sites constitutes a violation of the local anti-gambling regulations.

Texas Sports Betting

Sports betting is illegal in Texas, and the Supreme Court’s recent ruling that struck down the PASPA federal ban isn’t going to change that anytime soon. Online betting is illegal under the same provisions that prohibit playing poker or casino games over the internet. On a brighter note, on-track betting on horse and dog races are allowed, and all eight racing facilities offer simulcast wagering.

Texas Daily Fantasy Sports

The largest DFS sites – FanDuel, DraftKings, and Yahoo DFS – offer their services to Texas residents, but the future looks bleak for local enthusiasts of such contests. Before 2016, DFS companies maintained that they operate on the Texas market legally because their contests are based on skill as opposed to luck.

In January 2016, Texas Attorney General Ken Paxton reviewed the legality of DFS in response to a request from Rep. Myra Crownover and concluded that engaging in such contests constitutes illegal betting. As a result, FanDuel decided to withdraw from the local market, only to reopen its platform to Texans in 2018. Following its return, FanDuel received a letter from one of the state’s assistant attorney generals, which notified the company that the state does not permit it to offer fantasy sports gambling to its residents. Neither the officials nor the DFS companies are willing to back down. The issue of DFS in Texas will most likely be settled by a court, which is expected to side with the authorities.

Texas Lotteries

Gambling Rules In Texas

The Texas Lottery offers local draw games, multi-state lotto (Mega Millions and Powerball), scratch games, and all-or-nothing. The lottery isn’t allowed to sell any tickets over the internet, and its website serves for information purposes only. Consequently, Texans looking to participate in any of the available games need to visit one of the land-based retail shops.

Texas Bingo

Bingo is considered legal as long as it’s a charity game. Operating a commercial parlor or an online bingo service is illegal, which means that Texans don’t have access to any state-sanctioned bingo sites. Playing on an offshore platform constitutes unlawful betting and is treated in the same way as playing on offshore poker networks or casino sites.

Texas Online Gambling FAQ

What types of gambling are available in TX?

Land-based gambling in Texas is reasonably popular, and the state doesn’t have any restrictive gambling-related laws in place. Local gambling enthusiasts can enjoy their hobby in a tribal casino or at the racetrack. Like most US states, Texas operates its own lottery, which is also available over the internet. Social gambling and charitable gambling are allowed, but the state doesn’t have any regulated online gambling sites.

What laws cover online gambling in Texas?

The rules and regulations that have to do with gambling, in general, are listed in Section 47 of the Texas code. Online play is never mentioned in the passages referring to casino-style games and sports betting activities, so it’s tough to determine whether those general regulations apply to offshore sites’ customers or not.

Is real money online gambling legal in Texas?

Determining the current legal status of online gambling via offshore services is very hard. As mentioned above, the authorities have never tried prosecuting internet gamblers, so it’s impossible to say whether they’d be able to get a conviction or not.

Which offshore gambling sites accept Texas residents?

Most offshore sites are glad to accept Texas-based players.

What are the most popular banking options supported by Texas -facing sites?

Credit and debit card deposits are probably the best and most convenient option with most sites, as they tend to be quick and relatively reliable as long as your card has been cleared for international transactions. When it comes to withdrawals, most sites prefer to stick to bank wire transfers. However, in some cases, it might be possible to cash out via a check by courier, especially if you want to withdraw a considerable amount of money.

Does Texas offer any intrastate online gambling?

Texas doesn’t have any regulated sites similar to the casinos and poker rooms that have been made available to Nevada and New Jersey residents over the past few years. However, Texas lottery tickets can be purchased online.

Is it likely for Texas to regulate online gambling?

No. Texas regulations have recently been adjusted to allow for online lottery ticket sales, and nothing seems to indicate that the local lawmakers are planning to take it any further.

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.

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. 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.

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.

Sports Gambling Legal In Texas

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.

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.

I saw no mention of baccarat on their site, but I suspect baccarat isn’t a big draw in Texas.

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.

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.

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.