Gambling paradox
Gambling in the USA is a funny old business with each state setting its own legislation for different kinds of activity. Each state decides what is legal for land-based and online activities, and casino games, poker, sports betting, and racing are treated differently under state laws. For Texans, the options are more limited than in some other states, and the main choices are state-run lottery games, charitable bingo and raffles, Tribal land-based casinos, and trackside parimutuel wagering on horses and greyhounds.
Political hustling
Lt. Gov. Dan Patrick, arguably the most powerful figure in Texas politics, is reported as being the “single biggest obstacle to legalized online sports betting“. In a radio interview in 2021 about supporting narrow legislation framework he said that it was not an issue that was going to see the light of day in the session. True to his word, no sports-betting or casino bill got a look-in in either chamber.
However, the Texas Sports Betting Alliance was not giving up, and just before the 2023 legislative session, owners and executives from Texas professional sports teams hosted a dinner with Patrick as the guest of honor. After the meeting, they believed they had his support, but then he seemed to flip-flop. Despite a bill making it through the House, Patrick refused to refer it to a Senate committee, meaning its chances were ended before senators could consider it. While lobbyists have shifted their focus to 2027, the case for legalization is growing more difficult.
Online casino gambling
Looking at the states as a whole, sports betting has been the form of online gambling that has met the least resistance, so it seems highly unlikely that real-money online casino games will be considered. After all, even now, only seven states – Pennsylvania, New Jersey, Connecticut, Michigan, Delaware, West Virginia, and Rhode Island have legalized it. It seems as though Texans need to travel outside the state to join in the online fun.
Asking the experts
However, it seems that is not the case, and there are perfectly legal ways to play online casino games. We sat down with experts from Casino.org, a specialist review site for real-money and social casino games, to find out what is possible.
First of all, we asked whether all bets were off for Texans, and we were pleasantly surprised by the reply. Here is what they told us.
“Online casino gambling for real money in Texas is strictly off the cards. However, there are plenty of other opportunities for those who love to play casino games. Texans can perfectly legally access sweepstakes and social casinos. They also have the option of prediction markets, too.”
Have to say, we were quite surprised by this as the gambling legislation is very clear. So we wanted to learn more about how sweepstakes and social casinos are regulated and how they operate. We were also very keen to understand more about what prediction markets are. When we asked the question, Casino.org responded as follows.
“Real money casino gambling is regulated at the state level, but sweepstakes casinos are not covered by the same legislation at all. They are covered by federal promotion laws. Online sweepstakes are permitted in all US states except for Washington, Michigan, Idaho, Nevada, New York, and California. Players ‘wager’ in virtual currency, and casinos must adhere to the following rules.
· All prizes must be identifiable before entry
· Competitions have to have a clear end date
· Purchases must not enhance the chance of winning
Sweepstakes casinos do not meet all three criteria that define gambling in the US. To be considered gambling, a game must involve a prize, chance, and consideration. Sweepstakes casinos do not meet the consideration criteria because they offer players free participation methods through daily login bonuses that award virtual currencies. This allows them to be legally defined as promotions.
In addition, there is an additional layer of compliance with the ‘dual-currency’ system, in the form of Gold Coins and Sweeps Coins, which sets them apart from their real-money equivalents. Through a slightly convoluted process, virtual prizes can be converted into physical prizes as well. However, the main thing about this type of casino game (and all casino games) is the fun and entertainment it offers. It is important to remember that whatever kind of games you play.
There are also prediction market opportunities that allow Texans to trade on real-world outcomes. Prediction markets are legal in Texas because they are classified as financial markets, not sports betting. Players do not bet against a bookmaker. Prediction market users trade contracts with one another, and the price of those contracts reflects the probability of future events. However, not all prediction market platforms are available to Texans, and it can be a little confusing. Anyone who wants more specific information can check out our site for all the latest news.
However, the bottom line is that they are regulated at the federal and state levels. At the federal level, they come under the jurisdiction of the Commodity Futures Trading Commission, which oversees the derivatives markets. The states retain significant authority as well, which means state regulators can scrutinize how products are promoted and offered to residents. In some cases, enforcement actions have been taken, meaning some operators are restricted, and others are not. Texans can trade on Kalshi and Polymarket as well as DraftKings Predictions and FanDuel Predicts
While federal and state authorities overlap, they are not identical. As a result, availability can vary significantly depending on location. We recommend staying up to date with federal regulations and those in your home state, since rules can change quickly and affect what markets a platform can list. If something unexpected changes, it may be in response to regulatory changes.”
More battles to come
We have to say that we were surprised that there were quite so many options available. We are aware that sweepstake casinos and prediction markets are operating in an evolving landscape. In states like Utah, an almighty battle is underway, and the Governor has said he will sign legislation to prevent Kalshi from operating, putting the state at odds with the federal government. Kalshi has sued Utah, and the company is backed by the Commodity Futures Trading Commission. Kalshi is only backed by the CFTC because it took them to court! It could be fun to put some money on predicting the outcome of the Utah v Kalshi.