The push for legal sports betting in Texas faces significant obstacles due to the efforts of Las Vegas Sands Corp. and its multimillion-dollar lobbying campaigns for casino legislation. Despite the company’s significant financial investments and strategies, the prospects for legal sports wagering in the Lone Star State are becoming increasingly unlikely for the near future.
The late Sheldon Adelson, founder of Las Vegas Sands Corp., was determined to conquer the challenge of legalizing gambling in Texas, often referred to as the “white whale” of his endeavors. Following his passing, his widow, Miriam Adelson, has taken up the mantle to continue the quest for widespread gambling legalization in the state. Despite pouring substantial amounts of campaign cash into the cause and even acquiring a professional basketball team, these efforts have not yielded the desired results.
The aggressive lobbying efforts and substantial campaign contributions aimed at legalizing casinos in Texas have inadvertently bolstered the state’s anti-gaming community. These actions have had a counterproductive effect, actively diminishing the likelihood of Texas legalizing sports betting in the upcoming year. Analysts from Southern California advisory firm Eilers & Krejcik Gaming have revised their projections, removing Texas from the list of states expected to legalize sports betting in 2025 due to heightened opposition and resistance within the state.
Las Vegas Sands Corp. has been a key player in the push for casino legislation in Texas, having invested millions of dollars over the past decade in unsuccessful attempts to legalize casinos. The company is spearheading a renewed effort for a casino bill as the state’s legislative session approaches. Miriam Adelson, the majority owner of Las Vegas Sands, made a significant contribution of $9 million to the Texas Defense Fund political action committee, which supported Republican House incumbents during the state’s primary election. Additionally, she acquired a majority ownership stake in the NBA’s Dallas Mavericks, further intertwining the sports and casino industries in the region.
The Dallas Mavericks, under the ownership of Miriam Adelson, are exploring plans for a new arena in the Dallas area that could potentially be linked to a future hotel-casino resort operated by Las Vegas Sands. Mavericks co-owner Mark Cuban emphasized the importance of the casino component in the project, citing the financial contributions from gambling as crucial to supporting the arena and team operations. Business leaders have been briefed on the potential benefits of destination gaming by Sands Senior Vice President Andy Abboud, indicating a growing interest in exploring the integration of casinos in the region.
Despite the significant financial backing and persuasive efforts by Las Vegas Sands Corp. and its affiliates, the anti-gaming sentiment in Texas remains strong, particularly among Republican lawmakers in the State Senate. Eilers & Krejcik analyst Chris Krafcik highlighted the resistance within the Senate as a major obstacle to the legalization of sports betting in Texas. The Texas House previously passed an online sports betting bill in 2023 with broad support, only to have it blocked in the Senate, reflecting the challenges of navigating the state’s legislative landscape.
The Texas Republican Party has taken a firm stance against any gambling expansion, instructing lawmakers to oppose such initiatives and any budget proposals reliant on revenue from legal gambling activities. The party’s platform explicitly addresses the more favorable reception that gambling expansion has received in the House, indicating a clear divide between the two chambers on the issue. Krafcik predicts that Texas may not legalize sports betting until at least 2027, with a potential launch coinciding with the NFL season opener in fall 2028.
In a separate development, billionaire investor Carl Icahn’s recent acquisition of over 2.4 million shares in Caesars Entertainment has generated speculation about his intentions regarding the casino operator. Despite Icahn’s history of significant ownership in the company, his current stake of approximately 1% is unlikely to have a substantial impact on Caesars’ operations or strategic direction. The boardroom of Caesars appears unfazed by Icahn’s recent stock purchase, considering the minimal influence his stake holds in the company.
Icahn’s previous involvement in Caesars, where he once controlled 25% of the company and instigated a management shake-up that led to the company’s eventual sale to Eldorado Resorts, has raised questions about his potential influence in the current landscape. However, the recent stock purchase and subsequent decline in value have tempered speculations about any renewed interest by Icahn in Caesars. As the company continues its operations across numerous states, including Nevada, the focus remains on maintaining stability and growth despite external factors.
As the landscape of the global gaming industry evolves, MGM Resorts has set its sights on the emerging market in Brazil, where efforts are underway to transition the gray market online gaming sector into a legal and regulated industry. Brazil’s unofficial online gaming market boasts over 20 million active players and an estimated market size of $3 billion, presenting a lucrative opportunity for companies like MGM Resorts. Through its BetMGM digital platform, MGM is pursuing a sports betting and online gaming license in Brazil in collaboration with Grupo Globo, a prominent media company in Latin America.
The potential for legalized online gaming in Brazil has drawn comparisons to successful initiatives in other regions, such as Ontario, Canada, where the closure of the gray market led to significant growth in the regulated gaming sector. Analysts project that a legal online gaming market in Brazil could generate annual revenues ranging from $4 billion to $6 billion, positioning the country as a major player in the global gaming industry. The investment required for companies like BetMGM to establish a presence in Brazil is significant, with estimates suggesting expenditures in the hundreds of millions of dollars for marketing and consolidation through mergers and acquisitions.
With the football season fast approaching, Penn Entertainment is positioning its digital gaming business, ESPN Bet, as a major player in the sports betting market. Following the transition from the Barstool platform to ESPN Bet, Penn aims to establish ESPN Bet as “America’s sportsbook” in partnership with ESPN. The strategic alignment between ESPN and Penn reflects a shared vision for the future of sports betting, with a focus on leveraging ESPN’s brand recognition and audience reach to drive growth in the sports betting sector.
The upcoming football season presents an opportunity for ESPN Bet to solidify its position in the market, particularly in regions like New York where licensing opportunities are emerging. Penn’s efforts to rebrand its retail sportsbooks under the ESPN Bet umbrella signal a concerted effort to leverage the ESPN brand and expand its presence in the sports betting landscape. Despite challenges and uncertainties in the industry, Penn remains optimistic about the potential for ESPN Bet to capture a significant share of the sports betting market, supported by strategic partnerships and focused initiatives.
In conclusion, the landscape of the gaming industry continues to evolve, with significant developments unfolding in key markets such as Texas, Brazil, and the United States. The push for legalized sports betting in Texas faces considerable challenges due to the efforts of Las Vegas Sands Corp. and the entrenched anti-gaming sentiment within the state. MGM Resorts’ strategic focus on Brazil’s online gaming market highlights the company’s commitment to expanding its global footprint and seizing opportunities in emerging markets. Penn Entertainment’s partnership with ESPN Bet reflects a broader trend of collaboration between media and gaming companies to capitalize on the growing popularity of sports betting. As the industry continues to evolve, companies must navigate regulatory hurdles, market dynamics, and consumer preferences to stay competitive and drive growth in the ever-changing gaming landscape.