Is Internet Gambling Legal In Texas

At this time, online gambling is illegal in Texas. The Problem of Online Gambling There are several reasons that online gambling is illegal in Texas. Primarily, it is illegal because it violates Texas’ prohibitions on gambling. Gambling is generally prohibited in Texas but there are many exceptions to the general rule. Game rooms are generally authorized so long as they do not have illegal gambling devices. Specifically, so-called “eight-liner” machines are illegal gambling devices, unless the prizes awarded are non-cash items that are worth no more than 10 times. Texas Legal Online Gambling 2020. Texas legal online gambling options are supported completely by licensed offshore platforms in the meantime while the state decides whether to regulate this form of gaming. This guide offers some licensed offshore gambling sites which gladly accept TX players. The Texas Constitution doesn’t specifically make internet gambling illegal. These three conditions are present in most states, which is why most of them are served by offshore operators. Even Louisiana, South Dakota, and Washington – which explicitly outlaw online gambling – have problems with offshore sites.

Oh, Lone Star State. I have a bone to pick with you. This is a touchy subject, too, as I’m a proud citizen of the great state of Texas.

I love your food; I love your diverse cultures and climates. I love that you can be country and hipster all at the same time.

But.

I want to know why you hate gambling.

This is a heart breaker for this gambling Texan girl.

Why are almost all forms of gambling illegal in my home state?

Why do you want me to take my hard-earned dollars out of state to spend on my favorite hobby?

Is Internet Gambling Legal In Texas

I don’t want to give that taxable revenue to Louisiana, Oklahoma, or Nevada. I want to go to the Gulf Coast and let my family enjoy our warm waters.

Then I want to gamble.

Why are you keeping this from me?

Did I do something wrong?

Why are you so mad at gambling?

So many questions.

Let’s see if I can answer some of them.

The History of Gambling in The Lone Star State

Texas, much like its neighbors to the east and west, has changed hands many times of the course of its history. It was once even its own sovereign nation. Texans often refer to the Republic of Texas.

Texas was originally part of multiple native tribes, but we know how this goes. It changed hands between the Spanish (Tejas is the Spanish spelling), American, Mexico, and even the French.

Texas has the strictest real money gambling laws in the United States.

I would’ve guessed our Mormon friends in Utah would be a no go on gambling, but no.

It’s Texas.

Texas outlawed almost all forms of gambling during Prohibition in the 1920s when vice laws became prevalent in Texas. This move towards outlawing vices like alcohol, prostitution, gambling, and narcotics became prevalent in this once wild country.

This was huge swing from the Wild West attitude of the 1800s. Texas is the home of many outlaws like Billy the Kid and Jesse James. Let’s not forget that Bonnie and Clyde were Texas residents, too.

This is not a neat or prim and proper state. We like to be left alone, not told what to do, and keep to ourselves.

The Prohibition Era ushered in a clamping down of the above vices to almost do a 180 from the torrid, wild past of the state.

So, when did the State of Texas make gambling illegal?

It’s a long drawn out answer. I wish it were easier. I wish it were something simple like 1920.

But no, it was a slow suffocation of the hobby.

The state would see local governments outlaw vices in their regions starting in the Reconstruction Era of the post war South. The nail in the coffin was the passage of the 18th amendment to the United States Constitution. This made alcohol and gambling illegal throughout the country.

Once this amendment was overturned, many states started to reopen racetracks and saloon or bars. Texas dug its heels in the ground on the topic of gambling.

The legality of gambling has wavered throughout the state over the years, but one thing has stayed true.

Texas doesn’t condone most forms of gambling.

Texas has 2 casinos. We are number 2 in size and population in America. We are last in gambling.

Gambling

And it doesn’t look like the legislature is going to budge anytime soon.

There are some obscure loopholes in our gambling laws, and the lottery is a big government business.

What Type of Gambling Are Legal in Texas?

There are a few types of gambling that are legal in Texas.

Most of these are weird – except for the lottery.

The Texas State Lottery

The State of Texas legalized a state lottery in July of 1991. That was a big win. I remember when my parents got together with their friends to go in a ton of tickets. My siblings and I started seeing scratch off tickets in birthday and holiday cards from our grandparents.

Playing the lottery in Texas is a big deal. An estimated 68% of Texan play some form of the lottery. With almost 40 million residents, that is a lot of money.

I am from Austin, the capitol of the state. Downtown they used to live film the drawings and we would watch through the window on our way to the bar when I was in college at University of Texas at Austin.

I don’t know anyone who hasn’t played the lottery. When my husband and I were young and broke we would buy scratch off in hopes to win enough to cover our bills

The Texas lottery is as common as a rodeo or going 2 stepping after a meal of Mexican food or BBQ.

The state makes billions off the proceeds. This money is allocated to schools and wildlife and land protections. Texans are big hunters which makes them conservationists by default.

Horse and Dog Racing

Under the pari-mutuel racing rules, Texans can participate in dog and horse betting. There are 3 class 1 racetracks in the entire state.

This type of gambling was legalized in Texas in 1978. Texas was about 30 years behind the rest of the country.

I didn’t grow up with adults going to the races because of the old hold over of prohibition and the Progressive Movement.

Native Tribe Casinos

Under the Indian Gaming Regulatory Act, the 3 recognized native tribes of Texas were granted the right to open gaming establishment.

The Kickapoo Tribe has the Lucky Eagle Casino. It’s found in Eagle Pass, in far West Texas on the Mexican border. It’s a long hot drive from almost anyone in the state except Laredo.

The Tigua Tribe owns and operates the Speaking Rock Entertainment Center.

You’ll find it in El Paso on their native lands. El Paso is the 5th most populated city in the state, but it’s still a 9+ hour drive from the Dallas Fort Worth Metroplex.

Are you seeing a trend?

The Alabama-Coushatta Tribe offers gambling, too – at Naskila Gaming.

That’s located in Livingston, just north of Beaumont, Texas. It’s only a 3-hour drive, but there’s not a lot to see once you get there

The Naskila Gaming and Speaking Rock Entertainment have been wrapped up in red tape and legal disputes for years and may not be able to survive. This is against trend for other native casinos in other states.

You’ve heard of WinStar?

The largest casino in the world?

It is a native owned casino and has its own economy. It’s literally an hour drive from my house over the Oklahoma border.

What gives?

What Are 8-Liners and How Do They Work?

If you’re not from here, you’ve probably not seen these shady little machines. They’re the video poker looking machines in gas stations and dive bars.

Is online gambling legal in texas

They are gaming machines that offer noncash prizes of less than a $5.00 value. I have played these at a now closed bar (probably because they didn’t ID people).

Nowadays I see them mostly in underserved communities. It’s always a slimy gas station. The state legislature has been trying to outlaw them since the 80’s.

Gambling

They argue that they qualify as in-person gambling and don’t follow that state guidelines of approved gambling.

That’s not the type of hobby gambling I’m look for in my home state, are you?

Casino Cruises

This one is tricky. I’m impressed to be honest. These one day “cruises” take people to a cruise to essentially nowhere.

They stop in international waters so that there is no jurisdiction to say, “Quit it!”. It is pretty genius but expensive.

The cost has caused many startups to fail or rebrand with more failure. They leave out of a Texas port with mostly Texas passengers.

The problem is most of the Texas ports are a short drive to Louisiana, our eastern neighbor. Louisiana is very pro gambling.

See the problem?

Why would I get on a day cruise and risk sea sickness when I can take my entire family to the Golden Nugget Lake Charles Casino and Resort for an all-inclusive resort vacation?

Conclusion

It’s not good. Texas has even made friendly wagering illegal in the state. If I host a poker night with real money, I could serve some prison time.

When will Texas catch up and join the 21st, heck even the 20th, century?

I don’t know.

Every year it’s on the state legislature’s docket.

Every session it fails.

Maybe other states have made it too easy for Texans to come visit.

I see it as a missed opportunity for tax revenue for the state. And tourist dollars. Texas is so big that driving from Dallas to the coast is considered being out of state in other parts of this country.

Austin has 100s of 1000s descend on it every March for the SXSW festival.

Why not also make some tax venue off them with gambling?

It just doesn’t make sense.

But this state likes to do things the hard way because that’s how it’s always been. For a long time.

I would love to hear your thoughts and questions. Please leave a comment below.

Online Gambling Laws in Texas

Online gambling is growing in popularity at a fast pace. Many people have encountered online marketing for online casinos or online poker. While some of these games may seem like nothing more than harmless fun, the truth is that they are illegal under most circumstances. Engaging in online gambling may lead to criminal charges and serious penalties.

Laws regarding online gambling may seem confusing because different states can have very different laws on this type of gambling. Also, some states which allow certain forms of offline gambling may criminalize online gambling. Read on for a clear explanation of these laws in Texas.

Is Online Gambling Illegal in Texas?

The laws regarding gambling in Texas are somewhat complex. This is due, in part, to the fact that gambling can take many forms and occur in many places. It’s helpful to take a broad view of the situation and then take a closer look at some of the specifics of Texas gambling laws.

According to Section 47.02 of the Texas Penal Code, gambling is a criminal offense. This means that, according to the law, it is illegal to make a bet on the outcome of a sporting event, game, contest or election for the purpose of paying out money to the winner of the bet. This is a very broad law that prohibits the operation of casinos, gambling dens or bookmaking operations within the state of Texas.

However, there are some exceptions to the law. For example, it is a defense to prosecution if:

  • The betting occurred in a private place
  • No money was exchanged except for personal winnings
  • The odds of winning for all players were evenly matched except for the influence of skill or luck

So, if John and Alice are watching the Super Bowl at John’s house and they each place a bet on the outcome of the game, they are not liable to criminal prosecution. However, if John rents a public building and invites all of his friends to come over and place bets, he may be charged with an offense.

It is also a defense to prosecution to play a game for a reward that is not monetary on a device which is not listed as a gambling device. So, in some ways, games of chance are legal in Texas.

However, this does not always apply to online gambling. Online gambling takes place on the Internet, which is not a private place. It also involves exchanges of money other than paying out winnings and it can involve an element of chance, rather than pure skill. At this time, online gambling is illegal in Texas.

The Problem of Online Gambling

There are several reasons that online gambling is illegal in Texas. Primarily, it is illegal because it violates Texas’ prohibitions on gambling. It is also illegal at the federal level and many other states have banned it.

The major difference between online and offline gambling is that online gambling occurs in a public forum. This is the case with Internet casinos and other games of chance that are hosted online.

Daily fantasy sports leagues have added a new element to this situation. Sites like FanDuel claim that their services are based on skill, not chance. In Texas, a traditional fantasy sports league held in a private home would be likely exempted from prosecution. However, an online fantasy sports league that charges a fee for participation would violate this law because it occurs in a public forum and money is exchanged other than personal winnings.

Is Internet Gambling Legal In Texas

Legal Penalties

A person who is convicted on a charge of gambling in a Texas court can face significant penalties. A first-time conviction for gambling can result in a penalty of a $500 fine. Business owners who permit gambling on their property may lose their license to operate a business.

People who engage in online gambling may find themselves facing federal prosecution as well. Internet gambling may be a violation of the Wire Wager Act, opening participants up to federal charges.

At the end of the day, placing a public bet on the outcome of an event and paying a fee to participate is classified as illegal gambling in the state of Texas.

Are you currently facing charges for illegal gambling? Matthew Sharp is an aggessive attorney dedicated to protecting the rights of those accused of crimes. Contact his office today at 713-868-6100.