Texas Losing Tax Revenue to Neighboring States’ Sportsbooks, Casinos

The gambling laws in Texas are one of the toughest in the country as casino gambling and sports betting aren’t permitted. There are a handful of casinos operated by Native American tribes, but widespread commercial gambling isn’t permitted.

Texas Loses Gambling Tax Revenue to Other States
Despite its tough stance on gambling, Texas is certainly losing millions in tax revenue, especially considering that some of its residents regularly go to nearby states to engage in legal wagering and casino gambling. One such case is Lake Charles in Louisiana, which has become a must-go location for many Texans who want to gamble at a casino or place a sports wager.

A newly released report from Beaumont Enterprise suggests that the prohibition of gambling in Texas results in an estimated $300 million in tax revenue lost to other states. That is according to a study by Eilers & Krejcik Gaming, which estimated the figure based on a proposed 10% tax rate.

Not counting bets and money gambled by Texans in Louisiana, the new study pointed to billions in wagers on an annual basis. Per the from Eilers & Krejcik Gaming, Texans wager approximately $8 billion annually.

This figure points to the high interest in gambling services by Texas residents and their willingness to even visit nearby states in order to engage in the activity legally. Despite previous efforts, the state is yet to expand its gambling sector, leaving some with the only option to visit a neighboring state.

Louisiana Offers Casino Gambling, Mobile and Retail Betting
Welcoming visitors from Texas isn’t a surprise for the casino operators in Louisiana and Lake Charles in particular. In fact, licensed gambling operators in the area have been continuously improving and expanding their offering, while Texas residents are certainly among their daily visitors.

Last week, Harold Rowland, L’Auberge Casino’s vice president and general manager, celebrated the opening of the venue’s new ESPN Bet sportsbook. “We invite guests from Louisiana, Texas and beyond to enjoy the premier sportsbook experience in Southwest Louisiana,” he said at the time.

L’Auberge Casino has two venues in Louisiana, one on Lake Charles and another one in Baton Rouge and it is one out of more than a dozen retail casinos in the state.

Besides casino gambling and retail sports betting, Louisiana offers mobile betting options as well. Recognizable betting companies, including FanDuel, DraftKings, BetMGM and Caesars have already established their footprint in the state, catering not only to customers in Louisiana but to visitors from Texas too.