Texas midterm results renew hopes for sports betting legalisation

Sports betting stocks were trading broadly higher with Texas’s midterm election results figuring prominently. On Tuesday, Democrats Gina Hinojosa and Vikki Goodwin defeated Republican incumbents Gov. Greg Abbott and Lt. Gov. Dan Patrick. In Texas, the lieutenant governor holds an unusual amount of power and sets the agenda for the State Senate.

Legislative path

In 2024, the Texas House of Representatives passed a mobile sports wagering bill. That legislation did not advance in the Senate due to Patrick’s anti-gaming stance. Goodwin is supportive of putting the issues of both iGaming and mobile sports wagering to Texas voters. Under the Texas constitution, two-thirds majorities in both legislative chambers, still controlled by Republicans, are required to advance gaming expansion legislation before voters have the final say. Previous polling suggests there is bipartisan support among Texas voters to approve online sports betting. Hinojosa has not been vocal about gaming issues, but she did oppose the 2023 sports wagering amendment.

Prediction markets and Oklahoma

There is also talk that the shift in power could compel the state to pursue litigation against prediction markets. With neither Georgia nor Texas allowing sports betting, prediction market operators lean into that. Oklahoma could again examine sports wagering if Texas does the same. Republican Governor-elect Mike Mazzei said on the campaign trail that he wants to repair relationships with tribal casino operators damaged under Gov. Kevin Stitt.