Texas lawmakers file 2027 measures to let voters approve casinos and sports betting

Lawmakers filed joint resolutions on Nov. 9 that would place a constitutional amendment before Texas voters on Nov. 2, 2027, asking whether to permit up to 10 commercial casinos and to authorise brick-and-mortar sports wagering. The measures filed for the 2027 legislative session, which begins Jan. 12, 2027, also direct the legislature to negotiate tribal-state compacts to allow federally recognised tribes to offer Class III gaming on their lands.

What the proposed amendments say

House Joint Resolution 52 and Senate Joint Resolution 11 both propose a constitutional amendment to authorise the legislature to regulate and tax casino gaming and sports wagering under specified requirements. The bills would restrict legal casino gambling to on-site activity at licensed casino operators' physical premises and would permit the state to issue a maximum of 10 casino licences, each with an initial term of at least 40 years.

Both texts state that the legislature would define the precise scope of “casino gaming” and “sports wagering,” determine permitted locations for licensed casinos, and set where sports betting would be allowed. Casino licence-holders and sports wagering operators would pay an unspecified licence fee and a tax capped at 15%.

The Senate version, SJR 11, adds a provision to establish a commission to regulate authorised gambling in Texas. That commission would be funded by state lottery proceeds and by the tax revenue and licence fees from casino gaming and sports wagering, and would have law enforcement powers including investigative and enforcement authorities. The House and Senate versions require a two-thirds vote of each chamber for the joint resolution to proceed to the ballot.

Tribal compacts and the Kickapoo proposal

The resolutions would mandate that the legislature negotiate and execute a tribal-state gaming compact with any of the three federally recognised tribes with lands in Texas to permit Class III gaming under the Indian Gaming Regulatory Act (IGRA). The nations named in the bill texts are the Alabama-Coushatta Tribe in East Texas, the Kickapoo Traditional Tribe of Texas in Maverick County, and Ysleta del Sur Pueblo.

Separately on Nov. 9, Sen. Roland Gutierrez filed SJR 12. The full text was not available at the time of reporting, but the summary states it proposes a constitutional amendment authorising the Kickapoo tribe to execute a gaming compact with the state; the summary made no mention of the Alabama-Coushatta or Ysleta del Sur Pueblo.

IGRA requires that states afford federally recognised tribes the option to extend commercially authorised forms of gaming to tribal lands if the tribe wishes to do so. All three tribes currently operate Class II gaming facilities in Texas; the proposed measures would create a pathway for them to expand into full casino-style Class III offerings.

Political context after the 2026 midterms

The filings come after a substantial political shift in Texas in the Nov. 3, 2026 midterm elections, in which Democratic candidates won the offices of governor, lieutenant governor, and attorney general. The next legislative session opens Jan. 12, 2027, and Nov. 9 was the first day bills could be filed for that session.

Outgoing Lt. Gov. Dan Patrick, a longtime opponent of gambling expansion who used the lieutenant governor's role as Senate president to block prior measures, will not hold office when the 2027 session convenes. His incoming replacement, Vicki Goodwin, told local media in 2025 that voters should be allowed to decide on issues such as gambling.

The Texas Lottery Commission, which previously regulated the state's lottery, was disbanded by legislation signed by outgoing Governor Greg Abbott in 2025 amid broader scrutiny of lottery operations. SJR 11's regulatory commission provision proposes funding that would include state lottery proceeds alongside gaming-derived revenue.

Stakeholder reactions and market context

PENN Entertainment, which operates two Class 1 thoroughbred racetracks in Texas, said it will increase lobbying activity with the aim of being able to offer a brick-and-mortar casino or sports wagering if laws change. High-profile supporters of legal sports betting include Dallas Cowboys owner Jerry Jones, who on Nov. 6 said legal sports wagering would be “a plus” for Texas and linked his comment to the political turnover. Texas entrepreneur Mark Cuban told SBC Americas on Wednesday that the political change “certainly changes the calculus,” while adding he had no specific knowledge of pending actions.

While commercial casino gambling and retail sports betting remain illegal in Texas today, residents can access prediction markets and similar platforms on smartphones. Apps available to Texans include DraftKings, FanDuel, Kalshi and Polymarket; lawmakers in other states have cited such untaxed competition as a motivation for expanding regulated wagering.

Legislative history and next steps

Rep. Charlie Geren authored HJR 52; Sen. Carol Alvarado is the author of SJR 11. Both lawmakers previously filed gambling expansion measures in 2025 that did not advance out of committee. Two-thirds approval in each chamber is required for a joint resolution to appear on the ballot.

If the constitutional amendment questions win voter approval on Nov. 2, 2027, the legislature would then be authorised to enact laws setting licence terms, tax rates up to the 15% cap, regulatory structures and the mechanics of tribal compacts. The proposed 40-year initial licence term is specified in the texts filed on Nov. 9.

The filings revive familiar policy elements — a capped number of licences, long initial licence terms, a tax ceiling and mandated tribal negotiations — but they arrive in a notably different political environment ahead of the 2027 session.

“It is a plus in my mind with the best place in the world for sports, Texas, for us to have the gaming,” Dallas Cowboys owner Jerry Jones said on Nov. 6, linking his remarks to the state's political changes.

“It certainly changes the calculus,” Mark Cuban told SBC Americas, while adding he had no concrete knowledge of future actions.