When it comes to Texas sports betting, the sleeping giant hasn’t woken up. For years, lawmakers have kept traditional sports wagering off the table, leaving eager bettors on the sidelines.

Still, Texans aren’t shut out completely. DFS contests on Sleeper, Dabble, and Underdog remain available, while social sweepstakes sportsbooks like Fliff and Legendz provide another legal option. In this guide, I’ll cover everything about Texas sports betting today and finish with answers to common questions.

Texas Sports Betting Overview

In Texas, sports betting remains illegal, despite multiple attempts to legalize it. In February 2025, Governor Greg Abbott signaled openness to letting voters decide whether sports betting should be signed into law in the state. However, strong opposition in the Senate stalled any progress. Lieutenant Governor Dan Patrick has remained firmly against it. As a result, during the 2025 legislative session, neither chamber of the Texas Legislature advanced a bill to the governor’s desk for approval. So, if you’re wondering when sports betting will be legal in Texas, the next real opportunity won’t come until the 2027 legislative session.

However, Daily Fantasy Sports (DFS) sites such as Sleeper, Dabble, and Underdog continue to operate in a legal gray area. While not explicitly legalized, they’ve never been outlawed, which allows them to remain active in the state. On top of that, sweepstakes sportsbooks like Fliff and Legendz also provide a legal alternative, since they don’t require an initial Gold Coins pack purchase to place social bets.

Timeline

Although Texas sports betting isn’t yet legal, DFS sites and sweepstakes sportsbooks have marked key milestones that show the market’s growth and popularity.

• 2020: Fliff made an entry into Texas.
• 2023: Dabble launched in the US, forming its base in Texas.
• 2025: Payouts on the DFS app, Underdog surpasses $2billion+.
• 2027: Texas legislature may revisit sports betting legalization.

Online betting in Texas: A detailed breakdown

With DFS and sweepstakes sports betting operating in the state, bettors can explore these alternatives instead. Hence, in this section, I’ll break down how these sites are allowed to operate, the sports and markets they cover, the promos you can expect, the future of Texas online gambling, and the pros and cons of what’s currently available.

Licensing, Tax, and Oversight

Since Texas online sportsbooks aren’t permitted, there are no state-issued licenses or taxes tied to traditional sports betting. Unlike Florida sports betting, which allows real-money wagering, Texans are limited to daily fantasy sports (DFS) and sweepstakes sportsbooks as their alternatives.

When it comes to DFS, the industry currently operates in a legal gray area in Texas. The state attorney general once issued a non-binding opinion classifying DFS as illegal gambling, but that interpretation has never been enforced. As a result, DFS sites continue to operate in Texas without state regulation or licensing. Nevertheless, bettors have to be at least 18 years old to participate, and it’s important to remember that while Texas doesn’t regulate DFS, the IRS considers all gambling winnings, including fantasy sports, taxable income.

As for sweepstakes sportsbooks, these sites don’t require a license to operate, since they operate under US sweepstakes law. Hence, no initial GC pack purchase is necessary, making them legally distinct from real-money sportsbooks. What’s more, Texas doesn’t impose a state income tax on sweepstakes winnings like North Carolina sports betting, but bettors are still responsible for federal taxes. In most cases, significant winnings can trigger a 24% federal withholding rate, depending on the amount.

Sports and market coverage in Texas

In Texas, the National Football League (NFL) and college football dominate the action on daily fantasy sports and pick’em apps such as Underdog, Sleeper, and Dabble. Professional teams like the Dallas Cowboys and Houston Texans, along with major college programs including the Texas Longhorns and Texas A&M Aggies, attract the most attention from bettors.

Just like on DFS sites, betting activity on sweepstakes sportsbooks generally mirrors the popularity of sports in the state. NFL, college football, and the NBA are top choices. Texas’s three NBA teams, including the Dallas Mavericks, Houston Rockets, and San Antonio Spurs, also generate considerable basketball betting interest.

Since online sports betting in Texas isn’t legal, there are no official in-state licensing, college betting regulations to report, unlike Michigan sports betting, where data is publicly available since sports betting is legal.

Sports Betting Promos in Texas

Promotions on Texas DFS sites work similarly to what I found on New Jersey sports betting sites. Welcome bonuses are the main draw. For example, a popular DFS site might give new bettors a 100% deposit match up to $100, which you could immediately put to work on contests involving the Dallas Cowboys during an NFL Sunday slate. There are also no-deposit bonuses available on some sites, typically ranging from $10 to $25 in site credit, just for signing up. Referral bonuses are another common promo, often paying out around $15 when a friend makes their first deposit.

On the other hand, Texas sportsbooks operating a sweepstakes model offer a welcome bonus in virtual currencies, such as Gold Coins and Sweepstakes Coins, which can be used for both casual play and entries into promotional contests.

Besides the welcome offers, the promo structure extends into loyalty and VIP programs. Most Texas DFS and sweepstakes sites run tiered rewards systems, where the more you play, the more perks you unlock. Every entry or wager helps you climb levels, and the rewards range from tailored deposit bonuses to bigger perks like exclusive event invites, game tickets, or even a dedicated VIP host. For loyal Dallas Mavericks fans, that might mean courtside experiences or premium perks tied directly to NBA contests.

The future of sports betting in Texas

The future of sports betting in the state remains tied to the Texas legislative calendar. The earliest chance for change will come in 2027, when lawmakers meet for the next regular legislative session. At that point, the outcome could finally tilt in favor of bettors, or Texas could continue to see the same opposition it has experienced in the past years.

One key factor is that the current governor has expressed a willingness to sign a bill legalizing Texas sports gambling online if it reaches his desk. However, before that happens, the state Senate must approve legislation, and historically, efforts have stalled there. If the Senate shifts its stance, bettors could see regulated online Texas sports betting apps operating in the state for the first time.

Verdict + pros and cons:

Although there are no Texas betting sites yet, Texans still have access to DFS sites and sweepstakes-style sportsbooks. The strength of this setup lies in its versatility, allowing bettors to enjoy various formats, including pick’em contests, fantasy drafts, and prediction-style games, while still claiming welcome offers and ongoing promotions. The main constraint, however, is the limited market. DFS contests don’t provide the full breadth of traditional betting, and sweepstakes sportsbooks only allow bettors to redeem their Sweepstakes Coins (SC) for real prizes after collecting at least 100 SC with a 1x playthrough. Here’s a quick breakdown of the alternatives Texans currently have in place of traditional sports betting:

Don’t miss these selected betting sites

Online Vs. Retail betting in Texas

There are no retail sportsbooks in Texas, as sports betting isn’t legal in the state. This means Texans cannot place bets in person at physical sportsbooks. Instead, the only legal alternatives are online options like Daily Fantasy Sports (DFS) and sweepstakes sportsbooks. These sites operate digitally, offering welcome bonuses, virtual currencies, and a variety of markets to keep bettors engaged. Of course, mobile dominates the scene in Texas through DFS and sweepstakes sites, while retail betting has no presence at all.

Expert picks: Texas’ best online sportsbooks

Based on my research, here are my top picks for Texas’s best DFS sites and sweepstakes sportsbooks, including details on their welcome bonuses and the most popular markets they offer:

Texas Vs. Its Neighbors

Unlike nearby states like Arkansas and Louisiana, Texas has yet to legalize sports betting, which means there’s no data on handle, tax rate, or operator count.

The table below highlights the comparison between neighboring states, while Texas remains on the sidelines with zero operators.

Responsible Gambling in Texas

Responsible gambling and responsible social betting are crucial aspects of betting in Texas. Both DFS sites and sweepstakes sportsbooks offer tools to help bettors stay in control. From setting spending limits to taking time-outs or self-excluding, these features ensure that play stays safe and balanced. Operators also share helpline information so that anyone who needs extra support can easily find it.

You’ll find a full round-up of responsible gambling resources listed just below.

Expert Verdict

Sports betting remains illegal in Texas after the 2025 legislative session stalled, pushing the next opportunity for legalization to 2027. While the governor has shown openness to signing a bill, opposition in the legislature has stalled progress.

In the meantime, Texans can still enjoy Daily Fantasy Sports (DFS) and sweepstakes sportsbooks, which operate legally due to their use of virtual currencies and the lack of strict regulation around DFS. Popular DFS sites in Texas include Sleeper, Dabble, and Underdog, while sweepstakes sportsbooks such as Fliff and Legendz offer free-to-play options with welcome bonuses.

Until lawmakers move forward, Texas remains a sleeping giant in the sports betting world, with huge potential still untapped.

The best online betting bonuses in 2025

FAQ: Texas Sports Betting

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