Texas Online Casino Sites 2024
Real-money online casinos are illegal in Texas, but 2023 legislative talks on sports betting suggest changes could come. For now, sweepstakes casinos offer a legal alternative.
In this guide, we’ll break down the latest gambling laws, highlight the best ways to play casino games legally, and explain how to handle taxable winnings. Let’s dive in!
🔑 Key Takeaways
- Learn why Texas online casinos remain illegal in 2024.
- Find out about the history of online gambling in Texas.
Sweepstakes Online Casinos in Texas
As a Texan online casino player, sweepstakes casinos are your best option. These platforms use a no-purchase-necessary model, so you play for free with virtual coins and credits. That makes them legal in Texas.
We have an extensive guide on the best sweepstakes casinos in the US, but for now, we’ll share the top 3 sweepstakes casinos available in the state:
Overview of Texas Gambling Options
The gambling landscape in Texas offers a mix of restrictions and legal alternatives. While real-money online casinos are not allowed, players can explore several other exciting options:
| Gambling Type | Legal? | Details | Legal Age |
|---|---|---|---|
| Online Casinos | No | Real-money online casinos, including slots and poker, are prohibited by state law. | — |
| Sweepstakes Casinos | Yes | Legal alternative to real-money online casinos, offering games with real prize opportunities. | 18 |
| Land-Based Casinos | Yes (Limited) | Tribal casinos like Kickapoo Lucky Eagle, Naskila Gaming, and Speaking Rock are permitted. | 21 |
| Lottery | Yes | Includes Powerball, Mega Millions, and scratch-off tickets. | 18 |
| Parimutuel Wagering | Yes | Betting on horse and greyhound races at licensed tracks is allowed. | 18 |
| Charitable Games | Yes | Nonprofits can host Bingo and raffles with proper licensing. | 18 |
Reporting Taxable Winnings in Texas
Texas doesn’t demand local tax on gambling winnings. In other words, you don’t have to declare taxes on your state income tax return.
However, there’s a federal gambling tax to pay. So, you’ll file with the IRS using Form 1040. If you win up to a certain amount, you’ll receive W-2 G from the gambling operator, which implies a 24% flat withholding tax.
Fact: You’ll declare your winnings on Schedule 1 (Form 1040), Additional Income and Adjustments to Income.
History of Gambling in Texas
Texas has seen a shifting gambling landscape, with periods of legalization and restriction shaping the state’s current laws. Here’s a brief timeline:
- 1903: Gambling is fully banned.
- 1933: Parimutuel wagering on horse racing is legalized but repealed in 1937.
- 1980: Bingo becomes legal for charitable groups.
- 1987: Voters approve parimutuel wagering on horse and dog racing.
- 1991: The state lottery is established.
- 2021: Proposed sports betting legislation fails in the Texas Legislature.
What’s Next for Online Casinos in Texas?
Real-money online casinos remain illegal in Texas, and recent efforts to legalize gambling have stalled. In 2023, a proposal to allow online sports betting passed the House but failed in the Senate.
While future elections could revive discussions, online casinos are unlikely to be legalized soon. For now, Texans can enjoy legal alternatives like sweepstakes casinos, the lottery, and charitable bingo.
Stay tuned for updates as the US state’s gambling landscape evolves!
References
- Texas Chapter 47. Gambling — Retrieved on November 30, 2024
- Non Legal Online Casinos in Texas — Retrieved on November 30, 2024
Frequently Asked Questions
The legal age is 18 for the lottery, charitable gaming, and parimutuel wagering. For tribal casinos, the age requirement is 21.
No, sports betting is not yet legal in Texas, though recent legislative efforts suggest this could change in the future.
Yes, but only tribal casinos like Kickapoo Lucky Eagle and Naskila Gaming are permitted to operate within the state.