Election Results in Texas Boost Online Betting Hopes

Betting stocks are generally trending higher after Tuesday's midterm elections. In Texas, Democratic candidates Gina Hinojosa and Vikki Goodwin defeated Republican incumbents Governor Greg Abbott and Lieutenant Governor Dan Patrick, raising hopes that online sports betting could return to the agenda.

In California, commercial operators have fallen out with tribal casinos, and the state is not expected to put a sports betting vote on the agenda before 2028. In Florida, the Seminole Tribe holds a monopoly on online sports betting, so the industry sees Texas as a major opportunity.

Because the lieutenant governor sets the agenda of the state senate in Texas, Goodwin's victory stands out in particular. In 2024, the House passed a mobile sports betting bill, but because of Patrick's opposition, the bill could not move forward in the Senate. Goodwin supports putting both iGaming and mobile sports betting to voters. Hinojosa has not said much about gaming issues, but she opposed the 2023 sports betting change.

Under the Texas constitution, any law that expands the scope of gambling must pass both chambers by a two-thirds majority before it goes to voters. Republicans still hold the majority in both chambers. Earlier polls suggest that Texas voters across party lines support online sports betting.

There is also talk in the new landscape that the state could sue prediction markets. These platforms operate largely unregulated in Texas and often mention Texas and Georgia in their advertising. Analysts expect a similar trend could emerge in Georgia as well. Oklahoma could follow the same path if Texas takes a step forward. Governor-elect Mike Mazzei has said he wants to repair relations with the tribes, which have been damaged. These developments are not yet final.