Study shows legal sports betting could boost Texas economy, driving $360M in direct tax revenue

A recent study conducted by independent research firm Eilers & Krejcik reveals that legalizing sports betting in Texas could significantly benefit the state’s economy. 

According to the study, titled "Legal Online Sports Betting in Texas: Revenue Forecast and Economic Impact Analysis," the state could generate over $360 million in direct tax revenue annually, while also creating more than 8,000 jobs, reports FOX Business.

The analysis estimates that the state would see a $2.6 billion boost in annual economic output, with non-gaming tax revenues from legal sports betting projected to reach $24.3 million per year.

The report suggests that legalizing sports betting could create substantial economic growth, providing a new stream of revenue for critical state needs like education and property tax relief, without the need for raising other taxes.

Texas Rangers co-owner Neil Leibman voiced his support for the proposal, emphasizing the potential benefits for the state. "Texas has always led the way in growth and opportunity, but we’re falling behind when it comes to sports betting. Legalizing it would allow us to keep billions in revenue here at home," Leibman said. 

He further stated: "Texans are already betting; it’s time we make it safe and fair, while ensuring our state benefits. Letting Texans decide this issue is about economic opportunity and the freedom to choose."

Charlotte Jones, Executive Vice President of the Dallas Cowboys and daughter of the team’s owner Jerry Jones, also expressed her support for legal sports betting in Texas. "Texans deserve a safe and fair sports betting environment that helps fund critical needs in our state," Jones said. 

"By legalizing sports betting, we can protect our communities, enhance the fan experience and ensure Texas isn’t losing out to other states or the black market. As a mom and sports fan, I believe it’s time to let Texans decide how we move forward, ensuring our state benefits in a meaningful way."

The debate over sports betting in Texas has gained momentum, especially in the wake of the state hosting the highly successful Jake Paul-Mike Tyson fight, which became the most streamed sporting event in history and the most heavily wagered fight ever. 

With other states already benefiting from legal sports betting, Texas is under increasing pressure to consider the potential economic advantages that could come from legalizing the practice.

Former New Jersey Governor Chris Christie recently expressed confidence that Texas will legalize online sports betting in its upcoming legislative session, which begins on January 14, 2025.