Gambling Laws in Texas

One of the most popular card games in the world, Texas Hold'em, originated in the Lone Star State. Surprisingly, Texas is notoriously restrictive regarding gambling, with only a few limited legal activities - and poker is not one of them!

Which Types of Gambling Are Legal in Texas?

Gambling laws are contained within the Texas Penal Code PEN 47.01 and Texas Revised Civil Statutes CIV STAT 179e. These underline that gambling is illegal - with few exceptions. These include tribal casinos, charitable bingo, the state lottery and parimutuel betting on horse and dog racing. Online gambling is illegal in Texas.

Land-Based and Online Casino Games

There are currently three tribal casinos operating in the state. However, the local government have been trying to eradicate this form of gambling in Texas for many years. As a result, many casinos were forced to shut down on numerous occasions.

In 2022, the Supreme Court clarified that Native American tribes can offer games within the state. This resulted in the three tribes renewing their operations: Naskila Casino, Speaking Rock Casino and Kickapoo Lucky Eagle Casino.

Other forms of casino-style gambling in the state include game rooms that offer so-called 'eight liners' (slots), and casino cruises, which go through periods of inactivity and resurgence.

Online casino gambling is flat-out illegal in Texas. In the 90s the Attorney General's office even clarified that the existing gambling laws also apply to internet gambling. Residents looking to enjoy some online casino slots or other games would be breaking the law by joining any offshore sites.

Gambling on Poker

This is mostly illegal which some of you may find surprising given that the most popular form of the game - Texas Hold'em - is named after the state. Some poker is available to a limited extent in the tribal casinos, but standalone clubs are not permitted. Home-based private poker games are the only legal exception.

Online poker is not allowed, with government authorities clear that internet gambling activities are included in prohibition laws. Some US online casinos still run the risk though by accepting players from the state.

Playing Bingo With Real Money

Only charitable organisations and community groups may legally run bingo games. Even then, they are heavily restricted, with only three games allowed per week and each is only permitted to offer a total prize pool of up to $750.

Online bingo gambling is illegal in Texas, with no existing land-based operators permitted to offer games. Residents of the Lone Star State can quite easily access bingo casinos online though this is not permitted.

Lotto, Scratch Cards and Instant Win Games

The Texas Lottery legally offers residents the opportunity to buy tickets for popular draws as well as a variety of scratch cards and instant win games.

Playing online lottery games for real money is not allowed in Texas, with the state deeming this 100% illegal. The current lotto operator has a website but this serves for informational purposes only.

Social Gambling and Online Crypto Casinos

Social casinos that offer games using play chips via mobile apps are permitted. Home-based private poker games are also an exception to Texas gambling laws. Lootboxes and skins gambling are still the subject of debate regarding their nature and legality, with both activities currently unregulated.

Texas is pretty forward-thinking regarding cryptocurrencies, with Bitcoin permitted to be traded with other valuable assets. However, virtual currencies are still not regarded as legal tender. This means that none of the current gambling venues can accept these. Residents hoping to play at online crypto casinos will also find that this is an illegal gambling activity.

Is Sports Betting Legal in Texas?

Despite attempts to establish an industry, land-based and online sports betting remains illegal. However, parimutuel betting on horse and dog racing is permitted, with around seven venues currently in operation. Many of these have had to resort to operating historical racing machines to supplement their income though. This is due to a recent decline in dog and horse racing popularity.

Daily fantasy sports betting is in a grey area in Texas. Before 2016, operators including DraftKings and FanDuel served residents because the activity was considered one of skill rather than chance. In 2016, the Attorney General clarified that such activities were classed as illegal under state gambling laws. Despite this, the major DFS sites continue to operate in Texas, with the legality of the situation likely to be settled in court.

What's the Minimum Age to Gamble in Texas?

This is 18 for charitable bingo games, lottery and parimutuel betting on horse and dog racing. However, residents must be 21 or over to enter and play at tribal casinos in the state.

Tax Regulations on Gambling Winnings

Texas gambling tax regulations are just about non-existent, with the Lone Star State being one of only a handful that does not charge residents income tax. However, the 24% withholding tax charged at the federal level still applies.

A Timeline of Gambling Laws in Texas

Texas gambling laws date back to 1903 when the state banned all forms of gambling. Parimutuel betting on horse racing was legalised in 1933 to fund the state's recovery from the Great Depression. However, the activity was banned again in 1937.

In 1971 state legislation was amended to allow charities to run bingo games and this was also repealed in 1973. These games were left to individual counties in 1980, with 226 of the 254 in the state voting to legalise the activity.

Parimutuel betting on horse racing was re-legalised in 1987, with such betting on dog racing also permitted at the same time.

The Indian Gaming Regulatory Act of 1988 allowed Native American tribes to offer limited gambling at facilities on their land without state approval.

Raffles were added to the games that could legally be offered by charitable organisations in 1989.

Lottery gambling and simulcast betting were both legislated in 1991.

Key Facts

• In-person casino gambling is legal and available at three tribal casinos, whilst online activities are illegal.

• Poker is illegal in Texas, except in a limited form in tribal casinos. Online poker is also illegal.

• Bingo gambling is legal, but only charitable organisations are allowed to offer games.

• Online bingo gambling is illegal.

• Lottery gambling is legal via the Texas Lottery.

• Online lottery gambling is illegal.

• Sports betting is illegal in both online and offline forms.

• Parimutuel betting on horse and dog racing is legal.

• Daily fantasy sports betting is unregulated but remains available.