Online Gambling Texas
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Texas has the strictest gambling laws in the country, but could the state benefit from changing its outlook? Texas Hold ‘Em is perhaps the most popular card game in the world, but if you were to play it in the state that it took its name from, you could find yourself facing a $500 misdemeanor fine.
Texas has some of the strictest gambling laws in the whole of the United States, if not the entire western world. Penal Code 47.01 prohibits almost every form of gambling in the state, apart from a few bizarre exceptions like dog and horse racing.
Roulette, slot casino wagering and sports betting are all strictly off-limits in Texas (well, almost strictly off-limits, but we’ll get to that later). In this article, we take an in-depth look at what is and isn’t legal in the state, as well as hypothesizing whether Texas would benefit from adopting the same approach to gambling as the United Kingdom.
What is illegal in Texas?
Under the Penal Code, any form of gambling, defined as a bet placed on the premise of winning or losing something based purely on chance, is illegal. The following activities are classed definitively as gambling and are therefore illegal in Texas:
1. Casino gambling
All forms of casino gambling are illegal in Texas.
Every game on offer in a casino, from slot machines to poker, blackjack, and roulette, is categorized as gambling and is considered illegal. The law is not just limited to landbased casinos but it also applies to online companies looking to provide casino games to customers, too. Texan people currently cannot enjoy the amazing variety of games people can access in the UK at registered, popular sites like 888 Casino, where you’ll find exhilarating graphics and exciting games, including online roulette, blackjack, and poker.
However, there is one notable exception to this law which prohibits ‘keeping a gambling place’. In Native American lands, this law is not applicable meaning there are one or two places within the state where you can enjoy casino gambling facilities.
2. Sports betting
A night spent wagering on greyhound racing is legal in Texas, whilst more mainstream sports betting is not.
Wagering on the outcome of any mainstream sport in Texas is illegal and subject to the $500 misdemeanor fine. That applies to betting shops which are strictly prohibited and also the use of sports betting websites that may be registered in a different state or country.
Horse racing and dog racing are however exempt from these laws, but only at licensed premises where you are permitted to bet just off the track. Simulcast races and ontrack pari-mutuel wagering are legal for horse racing.
Whilst there is a limit of three racetrack licenses for greyhound wagering with simulcast races and on-track pari-mutuel wagering also being legal.
3. Social Gambling
You may well think that social gambling would cover any form of gambling played between friends, such as a poker night or a special casino-style evening. However, in Texas social gambling refers solely to bingo and raffles sponsored by charitable organizations or licensed lotteries.
These activities are legal and enjoyed by many Texas residents. Social gambling in the non-legal sense is not. Even if you’re just playing a friendly game of cards at home with your friends you are all technically breaking the law.
Are there plans to loosen gambling laws in Texas?
Some states in the USA have legalized gambling, with it becoming increasingly popular.
The entire country is currently facing a crossroads when it comes to gambling, particularly the online derivative. In many states across the USA, there is a clear disparity between land-based gambling and online gambling with the latter almost always being illegal or at least partially prohibited.
At the time of writing a small handful of states have taken the bold step to legalize most forms of online gambling and are currently reaping the economic benefits. This has led to a lot more states putting forward tentative legislation to do the same, and it is expected that most states will have moved towards legalization by at least 2021.
Texas, however, is one of the most traditionally conservative states in the USA and will most likely be one of the last, if not the last states to loosen their gambling laws. There is a bill currently on the docket that pro-gambling advocates are pushing for, but that concerns mainly sports betting.
It is therefore likely that sports betting will be the first gambling act to be legalized throughout Texas. Gambling fans will, however, have to wait at least a few more years to see any further movement on casino, cards, and online gambling laws.
Is it worth loosening the gambling laws?
The arguments for and against gambling laws often become heated and extreme. One of the best and calmest way to analyze the effects of looser gambling laws is by being objective and looking to the example of the United Kingdom, a country that has previously struggled with gambling legislation but is now providing a successful blueprint.
British Gambling: An overview
Online gambling in the UK is booming, with the economy seeing significant boosts from since it was introduced.
In the United Kingdom (excluding Northern Ireland) almost every form of gambling is legal, ranging from casino betting and lotteries to online sports wagering. That policy of legalization has been hugely beneficial for the country.
The British economy has grown and benefitted from the widespread legalization of gambling. The industry in its entirety represents annual revenues of £15 billion ($19.76 billion) and provides hundreds of thousands of jobs.
One of the biggest arguments against gambling legalization is always the social problems that may be incurred by gambling. However, in the UK experts claim that extra exposure to gambling has resulted in a more mature attitude to gambling, with a population who’s less likely to encounter problems with gambling.
The National Lottery in the UK has been running for the better part of three decades is one of the biggest contributors to charity in the country. It has helped to fund various schemes and enterprises as well as provide funding to the Olympic teams. In addition to this, every gambling operator in the country is required to donate a percentage of their turnover to gambling charities which provide help to those struggling with gambling problems.
Summary
On the balance of all available evidence, it is safe to say that the legalization of gambling in the UK has had a positive impact on a range of measurable areas. With public opinion beginning to lean towards a similar approach in the USA and Texas, perhaps lawmakers should look to follow their lead?
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.
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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
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.
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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.