DraftKings Zeroing in on Texas?

DraftKings CEO Jason Robins used his company's First Quarter Financial Reporting media opportunity to subtly sprinkle news about a possible entry into the yet-to-be-legalized Texas market. DraftKings is one of our best sports betting sites.

Texas remains one of the biggest state prizes for the U.S. legal sports betting industry, but there is no legal Texas sports betting scene. Nearly 50% of Americans can legally place a sports wager in their state. But Texas, California, and Florida are the three most populous states, and they haven't gone live with a widespread wagering platform. Florida sports betting became a reality in 2023, but residents only can access Hard Rock Bet.

In case of a possible Lone Star State launch, Jason Robins is ensuring that his company is ready to go live when legislators in the state green-light a sports betting platform.

The Texas legal sports betting battle

Jason Robins' optimism about the possibility of legal sports betting coming to Texas is based on the fact that the idea actually passed the state House of Representatives in 2023. Residents would surely like to be able to use our DraftKings promo code. 

Bill HJR 102 passed In this past legislative session by a 97-44 vote and then got the necessary two-thirds vote (101-42) in the House the next day. It would have approved the Texas public voting on a Constitutional Amendment on the November election ballot.

Rep. Dan Huberty said at the time that, "It's in the best interest for Texas to implement a strict regulatory policy about this. It's already happening. People acknowledge it's already happening. And so, we want to make sure that it's transparent, is trustworthy, that's got integrity to it, and it will generate additional funding for the state of Texas." 

The problem is that the Texas Senate has long been seen as a roadblock due to conservative values and traditional opposition to such a legal sports betting platform. 

The Texas legislative session ends May 29, and it looks like it will be without consensus among Senate Republicans, all-but ending the realization of legal sports betting in the Lone Star State until at least 2025. The state legislature meets every two years in Texas, meaning that any meaningful legislation will be on pause throughout the entirety of 2024.

Saying the quiet part out loud

Jason Robins, during a conference call surrounding DraftKings' recent quarterly earnings report, signaled his company's desire to establish a presence in Texas. He signaled Texas as a state that his company will target going forward.

During the call, he said, “I think Texas has a real shot. (A sports betting bill) got through one chamber last year. The Texas legislature doesn’t meet in 2024, so we’re really gearing up for 2025.”

On the line

Texas is the second-most populous state, with over 30 million residents. It is also home to iconic pro sporting teams such as the Dallas Cowboys, Houston Texans, Texas Rangers, Houston Astros, Houston Rockets, Dallas Mavericks, and Dallas Stars. College athletics are also massive in the Lone Star State.

With California seemingly nowhere close to a sports betting consensus and Florida accommodating just one sports betting brand at the moment, Seminole Tribe’s Hard Rock Bet, Texas, could be the largest legal sports betting state in the country if it can just get across the finish line.

Prior to the House vote, estimates had as much as $40 million in annual tax revenue being generated for needy state and local coffers. Under the House plan, the main beneficiaries would be educational programs for the state's 2,813 public and 427 private schools.

Not only Texas

DraftKings has committed to promoting its legal sports betting platform in as many new jurisdictions as possible. A big part of the recent North Carolina sports betting launch, DraftKings has also been a factor in the push for a legal Missouri sports betting scene with the Winning for Missouri Education initiative to legalize in that market.

More than 340,000 signatures supporting legal sports betting in Missouri were delivered to the state's Secretary of State last Thursday.

DraftKings is in on a Puerto Rico launch and will be busy with its Jackpot Lottery app, a shiny new toy the company purchased and is ready to bring to various markets around the country.