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The Lone Star State has but a lone star in its gaming universe: tribal gaming.
However, the North Texas Commission (NTC), an advocacy and lobbying group representing commerce in the North Texas region, is trying to change that. The NTC announced it has opened an application window for a new exploratory committee that will consider the impact of gaming expansion in the Dallas/Fort Worth metroplex and beyond.
The committee will comprise a variety of participants, including religious organizations, elected officials, and economic development experts, NTC COO Patrick Brophey told the Dallas Business Journal.
Key takeaways
- The North Texas Commission is launching an exploratory committee that will consider the impact of destination casinos in Texas.
- Texas has a history of being resistant to expanding gaming beyond tribal casinos.
- A 2023 bill proposing eight non-tribal casino licenses failed to make it through the legislature.
- Texas online casinos could generate $500 million to $600 million per month.
Why the North Texas Commission’s new committee is important
Texas has been a lesson in competing gaming interests. As a staunchly conservative state with small pockets of progressivism, tribal casinos have been the only form of gaming allowed.
As the majority of the country has settled into commercial (non-tribal) gaming and sports betting, Texas has taken a stand against both and online casinos, too.
That being said, momentum for gaming expansion has grown over the past couple of years:
- In late 2022, Gov. Greg Abbott expressed an openness to gaming expansion. At the time, Abbott’s press secretary told the Houston Chronicle that the governor is willing to consider gaming if “there’s a way to create a very professional entertainment option for Texans,” a statement alluding to the governor’s desire to gaming expand without increased crime, problem gambling, and pervasive gambling access.
- In 2023, a Texas bill that would’ve legalized eight commercial casinos created a stir but ultimately failed to make it to the governor’s desk.
- This past November, popular former Dallas Mavericks Owner Mark Cuban pitched the idea of building a destination casino in Dallas.
- This past May, a survey conducted by the Texas Hispanic Policy Foundation found that 56% of Texans supported the construction of destination resort casinos.
The NTC’s committee is evidence of the growing interest in Texas gaming expansion. A diverse, well-balanced set of perspectives on gaming expansion in the North Texas region may have sway with Austin lawmakers.
Despite the recent momentum around gaming expansion, non-tribal casinos still face significant hurdles, not the least of which is unwavering opposition from Lt. Gov. Dan Patrick.
TX online casinos could produce more revenue than entire US iGaming market
Predicting how gaming expansion will play out in Texas isn’t easy but, generally speaking, land-based casino expansion will happen first, followed by sports betting legalization and, finally, bringing online casinos to the Lone Star State.
Land-based casinos and sports betting (in-person and online) will no doubt bring unprecedented gaming revenue to the state. However, it’s online casinos that will reshape the US iGaming market.
There are seven states with legal real-money online casinos. Six of those states are clustered in the Appalachians and New England, with Michigan being the sole state in the Midwest with iGaming.
A good month for online casinos generates between $600 million and $700 million. On a state level, any state that generates $200 million is doing incredibly well.
To date, only three states have hit that milestone: Pennsylvania (multiple times), Michigan (once) and New Jersey (once).
If Texas were to legalize online casinos, monthly US and state-by-state iGaming revenue data would explode. Using revenue data from state gaming commissions and population data from the Census Bureau, PlayUSA predicts that Texas online casinos could generate more than $374 million in an average month:
| State | May online casino revenue | Population (according to 2023 Census Bureau data) | Per-capita revenue |
|---|---|---|---|
| Pennsylvania | $216.5 million | 13 million | $16.65 |
| Michigan | $198.6 million | 10 million | $19.86 |
| New Jersey | $192.1 million | 9.3 million | $20.65 |
| Connecticut | $46.3 million | 3.6 million | $12.86 |
| West Virginia | $17.9 million | 1.8 million | $9.94 |
| Delaware | $3.9 million | 1 million | $3.90 |
| Rhode Island | $2.3 million | 1.1 million | $2.09 |
| Average | $79.8 million | 6.5 million | $12.27 |
| Texas | $374.2 million | 30.5 million | $12.27 |
However, that estimate is based on an average monthly revenue figure that includes small-population states such as Delaware and Rhode Island. Generally, states with bigger populations tend to generate more per-capita iGaming dollars.
Using just the per-capita revenue from states with at least nine million people, it’s possible we could see Texas generate a mind-blowing $581 million in revenue during an average month.
In a high-revenue month like March, Texas could see more than $631 million in revenue, exceeding revenue we’ve typically seen from all US online casinos in a slow month.
If you would like to learn more about the current state of online casinos in Texas, including legal TX online poker options, our guides cover all the details.
