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The Legal Landscape of Online Gambling: What Players Need to Know

Since every US state has their own laws regarding gambling, it can be hard to keep track of where certain practices are allowed. Especially now that gambling can take some forms, from online casinos to a whole host of sportsbooks dedicated to real sports and fantasy sports.

Texas has it pretty rough when it comes to online gambling rules. Compared to states like Connecticut and Michigan, residents' options are limited. Below, you can find out the current legal landscape of online gambling in Texas and the US and where online casinos, sportsbooks, and sweepstakes casinos are available.

Where are online sportsbooks legal?

If you want to support Luka’s MVP campaign and the Dallas Mavericks with some online sports bets then you are out of luck as a TX resident. Although online sports betting is legal in 30+ states, these sites are not available in Texas.

Currently, online sportsbooks are available in the following states:

Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, Washington D.C., West Virginia, and Wyoming.

Remember that this is for online sportsbooks, i.e. making real money wagers on sports and their outcomes. Daily Fantasy Sports (DFS), and Pick’em-style real money competitions are legal in Texas and many other states where sports betting is prohibited.

The sportsbook industry has come a long way in the last 10 years as a decade ago, hardly any states had legalized sports betting. Now, it’s available in over 50% of US states, and sponsorships from the betting industry are providing excellent funding for professional teams like the Mavericks and Cowboys.

Online casinos in the US

Unfortunately, if you are an online casino fan in the US then your options are even more limited. Currently, online casinos are only legal in 6 US states, and Texas is not among them. The following states have legalized online casinos:

  • Connecticut.
  • Delaware.
  • Michigan.
  • New Jersey.
  • Pennsylvania.
  • West Virginia.

New Jersey was the first to legalize online casinos back in 2013. In 2023, the state extended laws for a further 5 years meaning these sites will be legal as a minimum until 2028. Other states followed suit, but after these initial 6, progress has been stagnant.

It’s hoped that eventually the online casino industry will follow the same trend as the US sportsbook industry and eventually flourish. After all, the sportsbook industry was in a similar state at the beginning, and now 30+ states have legalized these sites.

In each state, a gaming control board or similar-named organization is responsible for distributing gambling licenses and overseeing/auditing the casinos. The following are the relevant organizations for the 6 states:

  • Connecticut: Connecticut Lottery and the Connecticut Department of Consumer Protection’s Gaming Division.
  • Delaware: Delaware Lottery.
  • Michigan: Michigan Gaming Control Board.
  • New Jersey: New Jersey CCC and NJ Division of Gaming Enforcement.
  • West Virginia: West Virginia Lottery Commission.

These organizations are in charge of policing local online casinos and making sure they comply with the regulations of each state. Keep in mind that even though all six of these states allow online casinos to operate to some degree, the details of what is and isn’t legal change a lot from state to state.

Sweepstakes casinos as an alternative

While online casinos are prohibited in many states, there is an alternative type of iGaming entertainment that gives Texas residents the chance to play casino-style games. The alternative is sweepstakes casinos, or social casinos as they are also known.

Sites like Stake.us offer free play casino-style gaming. They do this by allowing customers to play with virtual currencies instead of real money. If you’re interested in trying out Stake.us, you can go to TheGameHaus.com to get a referral code.

With these virtual currencies, customers can play a huge range of games. Usually, the game libraries of sweepstakes casinos mimic those of online casinos and include similar game categories including video slots, live dealer games, table games, scratchcards, and arcade games. Many of the same software developers that work with online casinos also develop sweepstake games, including names like Pragmatic Play and Evolution.

Sweepstakes casinos are legal in 40+ states including Texas, which makes them by far the most available type of iGaming site. This varies from platform to platform, but for example, Stake.us is available in all US states except Washington, Nevada, Idaho, New York, Kentucky, Michigan, and Vermont.

Texas residents have good options

Currently, sweepstakes casinos are the go-to form of iGaming entertainment for residents of the Lone Star State looking for a casino-like experience. That said, Texas residents can also legally play at daily fantasy sports sites. This could change over time, but as it stands Texas gaming laws are relatively strict.

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