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Texas has the potential to overtake all other states as the largest online sports betting market. A mature annual betting handle of $32.1 billion is predicted by a recent estimate by Eilers & Krejcik, which is a 43% increase in projected revenue over their 2023 analysis. This revised prediction, which was commissioned by the Texas Sports Betting Alliance, shows strong expansion in new markets such as Ohio and Maryland.
The report estimates that Texas sportsbooks could generate $3.68 billion in gross gaming revenue annually once mature. Using a 15% tax rate, the state could collect over $360 million each year, even after accounting for promotional deductions and federal taxes. Additionally, Eilers & Krejcik identified a thriving illegal market in Texas, valued at $7.16 billion.
Eilers & Krejcik based its projections on 2023’s House Bill 1942, which proposed up to 15 sports betting operators. While the bill passed the House, it failed in the Senate. The analysis incorporated data from comparable markets like New Jersey and Arizona while considering rapid growth in states like Kansas, Ohio, and Maryland.
The report also highlights potential impacts of policy decisions, such as restrictions on college sports betting. A ban on college prop bets could reduce the handle by 25%, while excluding Texas college teams might cut it by 7.5%.
Eilers & Krejcik emphasized that “strong responsible gambling provisions” and effective advertising regulations are crucial for market success.