AUSTIN, Texas — Sports betting is a rapidly growing industry. In 2023, sports betting saw over $8 billion in revenue, and by 2027, it is expected to be a $14 billion industry. 

What You Need To Know

  • When Sue Schneider started monitoring the sports betting industry in 1995, sports betting was effectively banned throughout most of the country, thanks to a 1992 federal law. Now, almost 30 years later, sports betting is legal in 38 states, as well as Washington D.C. and Puerto Rico

  • This spike in legal sports betting is thanks to a Supreme Court decision back in 2018 that struck down the 1992 law and gave the option for legalization back to the states

  • When asked about the potential for sports betting to become legal in Texas, Schneider didn’t sound too hopeful

  • Some other states Schneider has her eye on are Florida, California and her home state of Missouri

When Sue Schneider started monitoring the sports betting industry in 1995, sports betting was effectively banned throughout most of the country, thanks to a 1992 federal law. Now, almost 30 years later, sports betting is legal in 38 states, as well as Washington D.C. and Puerto Rico. Both the governors of North Carolina and Vermont signed sports betting legislation into law in 2023, but the online components will be launched later this year. 

This spike in legal sports betting is thanks to a Supreme Court decision back in 2018 that struck down the 1992 law and gave the option for legalization back to the states. 

Currently, Schneider is the vice president of growth and strategy at Sports Betting Community (SBC). Stadia Ventures’ Managing Director Tim Hayden called Schneider the “godmother of sports betting” during a panel he moderated at SXSW on Monday, which included Schneider and Peter Scott, chief strategy officer at Play Anywhere. 

All three panelists commented on the rapid growth of the sports betting industry, with companies like DraftKings and FanDuel at the helm. 

When asked about the potential for sports betting to become legal in Texas, Schneider didn’t sound too hopeful. 

“Texas. I don’t know what to say about Texas,” she said with a sigh. “First of all, they only meet every other year, that Legislature, so this is an off year. Next year, they’ll be back.”

Ahead of the 2023 legislative session, a group of state representatives filed legislation to legalize and regulate sports betting in Texas. The Texas House of Representatives passed the legislation, but it died in the Senate. 

Gamblers will have to wait until the Legislature reconvenes in 2025 to see if someone will file another sports betting bill. 

“I would hope that by next year, you’d see Texas move forward,” Schneider said. 

Professional sports owners in Texas have embraced the idea of sports betting, with all the state’s biggest sport franchises being partners in the Texas Sports Betting Alliance. 

One of the most vocal proponents of legalizing gambling in Texas is former majority Dallas Mavericks owner Mark Cuban. 

Cuban sold a majority stake in the Dallas Mavericks to Miriam Adelson, who owns the casino company the Las Vegas Sands Corporation, but he will continue to keep full control of the basketball operations. The NBA Board of Governors unanimously approved the sale in late December. 

Adelson has pushed for casino gambling in the Lone Star State through her political action committee, Texas Sands. 

Even Schneider commented on the sale saying that it shows that “there’s some anticipation that at some point there really is going to be legislation here.”

Some other states Schneider has her eye on are Florida, California and her home state of Missouri. All three of them have varying hurdles to jump through, but she’s noticed that the sports teams in those states are putting pressure on the politicians. 

In Missouri, Schneider says she has seen petitions at major sports events inside the stadiums to get the question of legalizing sports betting on the ballot in November.

“The teams are very involved,” she said. 

Unlike Texas, Missourians can amend their state’s constitution by petitioning for proposals to be on the ballot. If the petition receives enough signatures, it can be added to the ballot for the public to vote on. 

Both Schneider and Scott told attendees not to get their hopes up for sports betting to be legalized in all 50 states. 

“I do think we’re not going to see Utah do it,” said Schneider. “We’re not going to hit 50. We used to say we would not ever see it in Hawaii, because Hawaii didn’t really have any gaming, but they actually have had some legislative efforts in the last couple of years to at least knock the idea of it. I could see where ultimately you would be in the upper 40s.”