TLDR Texas Lt. Gov. Dan Patrick has added prediction markets to the state’s interim study agenda ahead of the 2027 legislative session Patrick’s directive accuses prediction markets of exploiting federal law to bypass Texas gambling prohibitions The Senate State Affairs Committee will study the overlap between federally regulated derivatives and state gambling laws Texas remains one of the most gambling-restrictive states in the U.S. and has not legalized sports betting More than a dozen states and federal lawmakers have introduced legislation targeting prediction markets this year
Texas Lt. Gov. Dan Patrick has put prediction markets in his crosshairs. In a list of interim charges released on March 27, Patrick directed state lawmakers to study what he called the “sudden inundation of prediction market gambling.”
The directive was included in instructions to the Senate State Affairs Committee. It asks lawmakers to examine how prediction markets may be exploiting federal law to get around Texas gambling rules.
Patrick used pointed language in the charge. He referenced “the exploitation of federal law to circumvent Texas gambling prohibitions by allowing users to place bets on the outcome of elections and other events.”
The committee was also told to look at the relationship between federally regulated derivative markets and state-prohibited gambling. The charge ended with a call to protect the integrity of Texas elections and sports.
Texas does not hold a regular legislative session in 2026. But interim charges like these typically set the direction for the next session in 2027.
Texas Has a Long History of Blocking Gambling Expansion
Patrick’s stance is not new. He has consistently opposed gambling expansion during his time as lieutenant governor. In past sessions, he vowed the Senate would not even consider gambling expansion bills.
Texas is one of a small number of states that has