Sports Gambling Legislation in the US

The world of sports gambling is abuzz with the latest developments in the US, as lawmakers and industry stakeholders navigate the complex landscape of regulations and taxation. In Texas, a recent move to abolish the state lottery was narrowly avoided, bringing relief to sports gambling proponents who hope to open up the Lone Star State to legal sports betting by 2027. According to Dr. Emily Chen, a leading expert on sports gambling policy, “The retention of the state lottery in Texas is a crucial step towards the potential legalization of sports betting in the state, as it demonstrates a willingness to engage with the gaming industry and explore new revenue streams.”

Texas Keeps Lottery Alive

The Texas Department of Licensing and Regulation will now administer the state lottery, following a series of high-profile issues that put the Lottery Commission in disrepute. The main issue stems from lottery courier services such as Winner’s Corner, which DraftKings owns, and which pull in millions of dollars in revenue. Winner’s Corner sold nearly $100 million in lottery tickets in 2025, leading some lawmakers to question the commission’s oversight of these services. As noted by a study published in the Journal of Gaming Issues, “The lack of clear regulations and enforcement mechanisms has created an environment in which lottery courier services can operate with relative impunity, raising concerns about the integrity of the gaming industry as a whole.”

Implications for Sports Gambling

The retention of the state lottery in Texas has significant implications for the sports gambling industry, which hopes to expand into the state in the coming years. As observed by Professor James Johnson, a specialist in sports law, “The ability to navigate the complexities of state-level regulations and taxation will be crucial for sports betting operators seeking to enter the Texas market, and the retention of the state lottery is an important indicator of the state’s willingness to engage with the industry.” Some key points to consider include:

• The potential for sports betting revenue in Texas is substantial, with estimates suggesting that the state could generate upwards of $1 billion in annual revenue.
• The regulatory framework for sports betting in Texas will need to be carefully crafted to ensure compliance with federal and state laws, as well as to protect the integrity of the gaming industry.
• The involvement of lottery courier services such as Winner’s Corner raises important questions about the relationship between the gaming industry and state-level regulators, and highlights the need for clear guidelines and oversight mechanisms.

Louisiana Sports Gambling Tax Rate Won’t Double

In Louisiana, a proposal to more than double the tax rate on online sports gambling from 15% to 32.5% was amended to push the tax rate from 15% to 21.5%. This move is intended to help plug a massive $338 million budget hole in 2026, with the state hoping to raise an additional $35 million in tax revenue from sports gambling. As noted by Representative Neil Riser, sponsor of the amended bill, “The revised tax rate strikes a balance between the need to raise revenue for the state and the need to ensure that the sports betting industry remains competitive and viable.” According to a report by the Louisiana Gaming Control Board, the first three months of 2025 have seen significant growth in the state’s sports gambling sector, with a 114% year-over-year increase in gross gaming revenues from January to March, and $2.68 million in additional tax revenues.

Massachusetts Non-Compliance Incidents

In Massachusetts, the state gaming commission fined four sportsbooks a combined $50,000 for non-compliance issues, including accepting bets on banned events and failing to comply with voluntary exclusion protocols. As observed by Dr. Rachel Kim, a specialist in gaming regulation, “The fines imposed by the Massachusetts Gaming Commission demonstrate the importance of robust regulatory oversight in ensuring the integrity of the gaming industry, and highlight the need for sports betting operators to prioritize compliance and responsible gaming practices.” The incidents in question include the acceptance of bets on Belarusian and Russian teams or athletes by Fanatics and FanDuel, as well as the failure of PENN Sports to comply with voluntary exclusion protocols. As the sports betting industry continues to evolve and expand, the need for effective regulation and oversight will only continue to grow, and it will be crucial for lawmakers and industry stakeholders to work together to ensure that the industry operates in a fair, transparent, and responsible manner.