History of Legal Gambling in Texas

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Texas may have a reputation for its strict gambling regulations, but it actually has a rich and captivating gambling history. During the Old West era, the state was a prominent setting for thrilling gambling stories and events. Interestingly, Texas is also associated with influential figures who played a significant role in shaping gambling in the United States. Additionally, the famous poker game, Texas Hold’em, proudly bears the name of this state.

Let us now ponder upon the gambling history in Texas and analyze the diverse elements that have influenced the current state of gambling in the Lone Star State.

The current status of legal gambling in Texas

At present, the state of Texas explicitly allows the following types of gambling:

  • Texas Lottery
  • You can engage in pari-mutuel betting for both horse races and dog races.
  • Charitable gaming
  • Home poker games

In addition, there is a single tribal casino classified as Class II under the state’s authority, and another tribal gambling establishment is currently presenting its case in court. As a result, residents have the chance to participate in the following games, although the options are limited within the state.

In Texas, various other forms of gambling or gambling-related activities take place, often adopting distinct approaches to evade prosecution or utilize specific legal tactics.

  • Live poker games are available at card rooms.
  • Daily fantasy sports
  • Online casinos that prioritize social interactions and provide chances to win sweepstakes.

Under Texas law, casinos are prohibited.

Texas gambling timeline

The prohibition of gambling in Texas dates back to 1903 when the Texas Legislature enacted a law banning all gambling activities. Understanding the historical context that influenced this momentous choice is essential, as it still influences the state’s stance on gambling in the present day.

During the late 19th century, Texas gained a notorious reputation for its untamed nature, resembling the classic Wild West setting. Notable gamblers such as Doc Holliday and Lottie Deno could often be found in various Texan cities, plying their trade against cowboys, ranchers, and anyone with money to spare. The prevalence of gambling was often accompanied by a wide range of other vices. Infamous locations like “Hell’s Half-Acre” in Fort Worth, “Happy Hollow” in Houston, and the “Sporting District” in San Antonio served as historical centers of debauchery. These places were thriving hubs for saloons, brothels, and other morally questionable establishments that endured for extended periods.

As the century neared its end, progressive and puritanical movements gained more power, prompting lawmakers to impose restrictions on different activities. This led to the enactment of significant antitrust laws at both the federal and state levels, causing the demise of various companies, including the influential Louisiana Lottery, which had a significant impact on the gambling industry. Consequently, the prohibition of gambling in Texas in 1903 was just another step in the state’s broader campaign to suppress immoral behavior. This overall trend reached its pinnacle with the ratification of the Volstead Act in 1919 at the federal level, signifying the beginning of Prohibition.

In other words, the current efforts to restrict gambling in Texas can be traced back to a long-standing trend of similar initiatives that have persisted for over a century. Even though surveys show that Texans support the legalization of casinos and other gambling activities, lawmakers can vehemently oppose any progress due to the continued influence of influential political figures who strongly oppose gambling.

The following dates are noteworthy in the chronicles of gambling in Texas:

  • In response to growing public opposition towards gambling, Texas passes a comprehensive ban in 1903, prohibiting all forms of gambling, regardless of their legality.
  • In 1933, Texas legalized pari-mutuel betting on horse racing as a means to alleviate the financial difficulties caused by the Great Depression.
  • Governor James Allred of Texas calls for a special legislative session in 1937 to reintroduce the ban on pari-mutuel betting, effectively terminating a period of four years during which gambling was legalized in the state.
  • Charities were reclassified as exempt from the long-standing prohibition on lottery gambling by the Texas Legislature in 1971.
  • The Texas Court of Criminal Appeals, in 1973, declares the 1971 law unconstitutional, resulting in the re-banning of a once legalized gambling activity.
  • Bingo was once again legalized as a charitable activity in Texas in 1980. However, the decision to allow these games was left to the voters in each county. Consequently, the majority of counties in Texas (226 out of 254) have granted permission for the establishment of bingo halls or the operation of bingo games within their jurisdictions.
  • Texans granted their consent in 1987 to a constitutional amendment, permitting the revival of pari-mutuel betting on horse racing. With an overwhelming majority of approximately two to one, this pivotal choice also sanctioned dog racing. Houston witnessed the inauguration of the first horse track during this progressive period in 1994, followed by the introduction of two more tracks in San Antonio and Dallas in 1995 and 1997, respectively.
  • The Indian Gaming Regulatory Act was passed in 1988, granting federally recognized Native American tribes the opportunity to establish casinos on their reservation lands. Although limited gambling on these lands can be done without state approval, the establishment of full-service gambling requires agreements to be negotiated between tribes and state authorities. Consequently, two tribal facilities are currently operational in Texas due to this legislation.
  • The year 1989 witnessed a significant surge of public endorsement for raffles as a lawful endeavor for charitable groups in Texas. The proposal garnered an astonishing level of backing from voters, resulting in its successful enactment with an impressive majority. The number of votes in favor nearly doubled that of the opposition, solidifying its widespread acceptance.
  • In 1991, Texans showed their support for Proposition 11, a constitutional amendment that aimed to legalize a state lottery in Texas. Surprisingly, Texas voters continued their trend of backing new gambling initiatives, with a significant majority of 2-to-1 in favor. Furthermore, the state took measures to expand betting options on races by permitting the introduction of simulcast wagering at local tracks. This modification effectively turned each track into a destination for off-track betting.
  • Despite high expectations, the Texas Legislature in 2021 disappoints as sports betting legislation fails to make any significant progress. This failure is consistent with a historical pattern of major gambling legislation consistently failing to receive a floor vote in either chamber. However, there is a glimmer of progress as Texas decides to allow rodeos to hold raffles.

Why is it called “Texas Hold’em”?

It continues to baffle Texans that their state is famously linked to the immensely popular poker game, Texas Hold’em, yet engaging in the game within the state is mostly illegal. Despite the presence of private card clubs in Texas, the legality surrounding playing Texas Hold’em remains ambiguous. How did this peculiar connection between the game and the state come about?

The exact origins of Texas Hold’em are uncertain, but it is widely believed that the game first emerged in the state of Texas. Some people argue that it originated in Robstown, a suburb of Corpus Christi, during the early 20th century. However, there is no historical evidence to support this claim. Johnny Moss, a Texas native and member of the Poker Hall of Fame, recalled playing Texas Hold’em in Dallas clubs during the 1930s. Others have suggested that the game was introduced in Waco during the 1940s. Doyle Brunson, another Texan and Poker Hall of Famer, remembers playing his first game of Texas Hold’em in Fort Worth around 1958.

The game remained relatively unnoticed on a national level until the late 1960s, when it gained significant recognition through a Life magazine article published in 1968. The Texas Gamblers Reunion, hosted in Reno, Nevada in 1969, played a crucial role in sparking the creation of the World Series of Poker. The renowned poker tournament was held the next year at Benny Binion’s Horseshoe Casino in Las Vegas, featuring a range of poker variations such as draw and stud alongside the main game.

In the 1971 WSOP, the tournament that served as the highlight of the series was devoted to No Limit Texas Hold’em. This solidified the game’s esteemed reputation as the “Cadillac of poker,” as stated by Brunson. Texas’ influence on the game’s development was further underscored by the participation of notable figures from the early days of WSOP, including Moss, Brunson, Amarillo Slim Preston, Crandall Addington, and Brian “Sailor” Roberts, all of whom hailed from the state.

To this day, No Limit Texas Hold’em continues to be the favored variant for the WSOP Main Event and several tournaments worldwide. Remarkably, the game has become a significant symbol of Texas on a global level, even though it was historically considered illegal within the state.

Notable people in Texas gambling history

Despite its consistent opposition to gambling at the institutional level, Texas undeniably holds a significant influence over this activity. Not only has the state played a crucial role in shaping the advancements of gambling within its borders, but it has also made a considerable impact on a global scale.

Here is a collection of remarkable individuals who either originate from Texas or have connections to the state, and have made a notable impact in the world of gambling, each in their own distinct way:

  • Originally from Graham, Crandell Addington currently resides in San Antonio. He holds the impressive record for the highest number of appearances at the final table of the WSOP Main Event, accomplishing this remarkable feat a total of seven times. In addition, he has been duly recognized and honored with induction into the esteemed Poker Hall of Fame.
  • Benny Binion, hailing from Pilot Grove, founded the famous Binion’s Horseshoe Casino in Las Vegas, which served as the inaugural home of the esteemed World Series of Poker. His significant contributions to the poker realm earned him a well-deserved place in the Poker Hall of Fame.
  • Jack Binion, hailing from Dallas, experienced extraordinary triumph in the realm of gambling. Despite being only 26 years old, he swiftly rose to become the president of the Horseshoe Casino. During his tenure, he played a pivotal role in establishing the esteemed World Series of Poker (WSOP) and numerous other poker and gambling venues. Binion’s noteworthy contributions to the field were widely acknowledged, leading to his induction into both the esteemed Poker Hall of Fame and the American Gaming Association’s Gaming Hall of Fame.
  • Doyle Brunson, known as the “godfather of poker,” was born in Longworth. He is renowned for his achievements in the World Series of Poker (WSOP), having won the Main Event twice and earned a remarkable 10 WSOP bracelets. His influential book, “Super/System,” has significantly influenced the game of poker, particularly No Limit Texas Hold’em. Due to his exceptional contributions, Brunson has rightfully been inducted into the prestigious Poker Hall of Fame.
  • Graduating from the University of Houston, Johnny Chan has made outstanding achievements in the realm of poker. Not only did he triumph in the highly esteemed WSOP Main Event twice, but he also boasts an impressive collection of 10 WSOP bracelets. Chan’s fame reached beyond the poker table with his memorable role in the iconic poker film “Rounders.” Due to his exceptional contributions to the game, Chan has been duly recognized and inducted into the prestigious Poker Hall of Fame.
  • Frank Fertitta Jr., born in Beaumont, was the driving force behind Station Casinos and played a crucial part in bringing the idea of “locals” casinos to various locations in Las Vegas.
  • Born in Marshall and residing in Dallas, Johnny Moss attained extraordinary success in the realm of poker, emerging victorious in the renowned WSOP Main Event on three occasions and amassing an impressive tally of 10 WSOP bracelets. His unparalleled expertise and invaluable contributions to the game rightfully secured him a prestigious position in the Poker Hall of Fame.
  • Amarillo Slim, whose real name was Thomas Preston, gained his moniker from his cherished Texas hometown, where he spent a considerable portion of his life. He accomplished remarkable feats in the realm of poker, emerging as the victor in the WSOP Main Event and securing four WSOP bracelets. These extraordinary triumphs ultimately propelled him to be honored with an induction into the esteemed Poker Hall of Fame.
  • During the late 1800s, a woman named Carlotta Thompkins rose to fame in Texas as Lottie Deno, an esteemed gambler. Her path crossed with that of Doc Holliday, resulting in an unforgettable meeting. Recognized as the “Angel of San Antonio,” Lottie earned this moniker due to her affiliation with riches, as “Angel” playfully derived from the Spanish term “dinero,” signifying “money.”

The past, present and future of Texas gambling

The history of gambling in Texas dates back many years, however, it has not always been embraced by the conservative groups within the state. A closer examination of Texas’ gambling past demonstrates that the legalization of various forms of gambling does not guarantee a permanent acceptance. Both horse racing and charitable gaming encountered initial challenges before eventually becoming popular activities in Texas. Even horse racing had to confront the possibility of losing funding just a few years ago.

Hence, it is advisable for Texans to be cautious and alert regarding any forthcoming advancements, regardless of whether sports betting, card rooms, or other gambling activities become legalized in the state soon. Just as a game of Texas Hold’em can experience substantial changes from the flop to the turn to the river, the upcoming phase of legalized gambling in Texas holds the possibility of being significantly distinct from its previous iterations.