The Texas House of Representatives voted on a constitutional amendment that would allow US voters to legalize sports betting online.
HJR102 passed the House yesterday, May 11, by a vote 101-42. It will now be sent to the State Senate for further discussion.
If it becomes law, the amendment to the constitution itself will not legalize gambling, but allow a vote on the matter at the state level. The vote would be held at the election scheduled for November 7, this year.
The HB 42 bill that outlines the details of how the market will run and be regulated also passed the House on the same date by a vote 82-51.
The bill’s key features included that licensed operators would be taxed at a rate of 15% on the adjusted gross amount of sports betting. The original tax rate was 10% but was raised to 15% after an amendment approved this week.
The Texas Lottery Commission will be responsible for granting all licenses in order to offer sports betting within the state. They will also oversee the regulation of the market.
The fee for operators applying for a permit to offer sports betting is $2.0m. This amount will be refunded in the event that their application is not approved, less any costs incurred by the Commission.
The Commission will also issue service provider permits to applicants who wish to work with licensed operators within the state. Each of these permits would cost $25,000
If both bills are passed and approved by voters, the new law will come into force on January 1, 2024.
