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One of the most popular card games in the world, Texas Hold'em, originated in the Lone Star State. Still, Texas is notoriously restrictive regarding gambling, with only a few limited activities legal in the state - and poker is not one of them! Read on to learn all about Texas gambling laws in our article below.

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Texas gambling laws are contained within the Texas Penal Code PEN 47.01 and Texas Revised Civil Statutes CIV STAT 179e. These underline that gambling is illegal in Texas with few exceptions, namely, tribal casinos, charitable bingo games and raffles, the state lottery and parimutuel betting on horse and dog racing. Online gambling is illegal in Texas. Here's a closer look at how Texas gambling laws apply to various gambling activities.

Casino Games

Casino gambling is legal in Texas, with three tribal casinos operating in the state. However, government officials have been trying to eradicate this form of gambling in Texas for many years, with the casinos forced to shut down on numerous occasions. In 2022, the Supreme Court clarified that Native American tribes can offer games within the state.

This resulted in the three tribal casinos renewing their operations: Naskila Casino, Speaking Rock Casino and Kickapoo Lucky Eagle Casino. Other forms of casino-style gambling in the state include game rooms that offer so-called 'eight liners' (slots), which law enforcement is not too concerned about pursuing, and casino cruises, which go through periods of inactivity and resurgence.

Online casino gambling is illegal in Texas, with the Attorney General's office clarifying in the 90s that the law also applies to internet gambling. That said, there has yet to be a case of an individual being prosecuted for playing online casino slots or other internet-based casino games, with the consensus being that playing at offshore casino sites is relatively safe, albeit technically illegal.

Poker

Poker gambling is illegal in Texas, which some may find surprising given that the most popular form of the game - Texas Hold'em - is named after the state. Poker is available to a limited extent in the tribal casinos, but no standalone poker clubs are permitted in the state. Home-based private poker games are the only exception.

Online poker is illegal in Texas, with state authorities clear that internet gambling activities are included in prohibition laws. However, online poker sites are fairly easy for Texans to access, and there is no record of anyone being prosecuted for playing poker online.

Bingo

Bingo gambling is legal in Texas, but only charitable organizations and community groups may run bingo games. Even then, they are heavily restricted, with only three games allowed to be run per week and each game only permitted to offer a total prize pool of up to $750. Only the 226 counties out of 254 that have voted via public referendum to allow bingo games are permitted to run them.

Online bingo gambling is illegal in Texas, with no land-based bingo operators permitted to offer bingo games online. Residents of the Lone Star State can quite easily access bingo casinos online, with prosecution for playing online bingo games unlikely.

Lotteries

Lottery gambling is legal in Texas, with the Texas Lottery offering residents the opportunity to buy tickets for popular draw-based games such as Mega Millions and Powerball, plus scratch cards and instant win games.

Online lottery gambling is illegal in Texas. The Texas Lottery is not permitted to offer tickets or games online, with their website operating for information purposes only. Those looking for online lottery games for real money can certainly find them, with little likelihood of prosecution for playing such games.

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Social casinos that offer casino gameplay using play chips only are permitted in Texas, and home-based private poker games are also an exception to Texas gambling laws. Lootboxes and skins gambling are still the subject of debate regarding their nature and legality, with both activities currently unregulated.

Texas is pretty forward-thinking regarding cryptocurrencies, with Bitcoin recently permitted to be traded like other valuable assets. However, virtual currencies are still not regarded as legal tender in the state, meaning none of Texas's limited gambling venues can accept Bitcoin or altcoins. Crypto casinos allow Texans to play slots and table games online using Bitcoin and other coins, with prosecution for doing so unlikely.

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Despite attempts to establish such an industry, land-based and online sports betting is illegal in Texas. However, parimutuel betting on horse and dog racing is legal in Texas, with around seven venues currently in operation. Many of these have had to resort to operating historical horse racing machines to supplement their income due to a recent decline in dog and horse racing popularity.

Daily fantasy sports betting is in a grey area in Texas. Before 2016, operators including DraftKings and FanDuel served Texans because their games were ones of skill rather than chance. However, in 2016, the Attorney General clarified that such activities were classed as illegal gambling under state gambling laws. Despite this, the major DFS sites continue to operate in Texas, with the legality of the situation likely to be settled in court.

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The legal gambling age in Texas is 18 for charitable bingo games, lottery and parimutuel betting on horse and dog racing. However, residents must be 21 or over to enter and play at tribal casinos in the state.

Tax Regulation

Texas gambling tax regulation is just about non-existent, with the Lone Star State being one of only a handful of states that does not charge residents income tax. However, the 24% withholding tax charged at the federal level still applies.

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Texas gambling laws date back to 1903 when the state banned all forms of gambling. Parimutuel betting on horse racing was legalized in 1933 to fund the state's recovery from the Great Depression. However, the activity was banned again in 1937.

In 1971, state legislation was amended to allow charitable organizations to run bingo games. This was also repealed in 1973. Charitable bingo games were left to individual counties in 1980, with 226 of the 254 counties in the state voting to legalize the activity. Parimutuel betting on horse racing was re-legalized in 1987, with such betting on dog racing also legalized simultaneously.

The Indian Gaming Regulatory Act of 1988 permitted Native American tribes to offer limited gambling at facilities on their land without state approval. Raffles were added to the games that could legally be offered by charitable organizations in 1989. Lottery gambling and simulcast betting were both legalized in 1991. A proposal to legalize sports betting in Texas failed to progress in 2023.

Key Facts

Texas is one of the most restrictive states in the US regarding gambling laws. Here's a reminder of the main points regarding gambling in Texas:

• Casino gambling is legal and available at three tribal casinos.
• Online casino gambling is illegal.
• Poker is illegal in Texas, except in a limited form in tribal casinos.
• Online poker gambling is illegal.
• Bingo gambling is legal, but only charitable organizations are allowed to offer games.
• Online bingo gambling is illegal.
• Lottery gambling is legal via the Texas Lottery.
• Online lottery gambling is illegal.
• Sports betting is illegal in both online and offline forms.
• Parimutuel betting on horse and dog racing is legal.
• Daily fantasy sports betting is unregulated but available.