Texas is unlikely to see legalized gaming in the near future, and the US Supreme Court is expected to reinforce states’ authority over prediction markets regulation, affecting bettors and consumers nationwide.
Steven Scheinthal, general counsel and executive vice president of Fertitta Entertainment, expressed skepticism about gaming legalization in Texas during a recent Nevada Gaming Commission hearing. He noted that current political conditions in Texas do not favor gaming approval, stating, “Based on the current state politics, I don’t envision that gaming would come to Texas,“ and added that if political dynamics remain unchanged by 2028, gaming legalization may not occur until 2032.
For players and bettors, this means that access to regulated commercial casinos or sports betting options within Texas will remain limited for the foreseeable future. Consumers interested in legal gaming will need to look to neighboring states or online platforms regulated elsewhere.
Separately, Scheinthal addressed ongoing legal disputes involving prediction markets, which allow users to place wagers on outcomes like sports events or political results. Some operators currently accept wagers under the Commodity Futures Trading Commission (CFTC) rather than state gambling laws, leading to conflicts with state regulators, including Nevada.
Federal court cases on this matter are expected to reach the Supreme Court, which Scheinthal predicts will rule that states retain the right to regulate or prohibit prediction markets within their borders. He explained, “Ultimately, the Supreme Court will say it’s up to the states to decide and it will be up to each state to determine the rules,“ signaling that operators cannot rely solely on CFTC protections if states choose to ban such markets.
For consumers, this anticipated ruling could lead to increased state-level restrictions or bans on prediction market platforms, potentially reducing access to these types of wagers depending on local laws. Players should remain aware of their state’s regulations and the legal status of prediction markets to avoid unregulated or unlawful betting activities.
In related developments, the Nevada Gaming Control Board recently reached an agreement with prediction market operator Kalshi to cease accepting wagers from Nevada residents by August 12, or face fines of $120,000 per day. This enforcement action highlights the growing regulatory scrutiny prediction markets face at the state level. More details on this case are available in the CDC Gaming report here.
Additionally, international interest in prediction markets is rising, with the UK experiencing increased activity around major events like the World Cup and elections. However, UK operators also face regulatory challenges, as outlined in a recent Guardian article discussing the sector’s growth and regulatory environment.
The article also clarifies that Tilman Fertitta, owner of Fertitta Entertainment, holds a minority investment in DraftKings but does not have operational control or a board position, ensuring no conflict of interest with the NBA or DraftKings’ offerings. Scheinthal noted, “That’s not something DraftKings was willing to do,“ referring to the NBA’s stance on board membership and team inclusion in the DraftKings app.
Players concerned about responsible gambling should note that ongoing regulatory efforts aim to keep betting activities within legal frameworks designed to protect consumers and reduce gambling-related harm. For more information on responsible gambling practices, visit our Responsible Gambling section.
For further updates on US gaming regulation and sports betting, explore our USA and Sports Betting sections.
Read the full CDC Gaming report here.
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