The Early Line: Texas Sports Betting On Life Support After Lottery Drama?
Gambling news today: The latest on Fresno State betting scandal; MLB considers reinstating Pete Rose
TCL offers a roundup of recent US gambling news with analysis called The Early Line every Monday.
Lottery controversy is hurting gambling expansion in Texas | The domino effect of a vicious news cycle for online lottery couriers is spelling more trouble in Texas. From the Dallas Morning News (paywall): “Even the most ardent supporters of expanding gambling have discussed the damage the lottery controversy has done to dreams of resort-styled casinos, including a Dallas palace that would include shops, restaurants and — perhaps — the Dallas Mavericks. “Boy, y’all are sure muddying the waters for some of us who try to expand gaming in this state,” state Sen. Carol Alvarado, D-Houston, said during a recent Senate Finance Committee hearing where Texas Lottery officials were heavily criticized for allowing couriers to broker online and mobile ticket requests. Texas law prohibits online or telephone sales of lottery tickets.”
Reading the line: It’s getting difficult to see how the state would pass bills that would allow casinos and/or sports betting with the backdrop of the courier controversy. The turnaround from a jackpot won via DraftKings’ Jackpocket to the ban on online sales induced whiplash. That DraftKings would be one of the major operators in a regulated sports betting regime in Texas probably isn’t going to help optics behind the scenes, either. Online sports betting was already a decided underdog to get done in Texas, and now it seems like the effort is on life support, if not already dead.
The Texas legislature meets only every two years, so a failed effort would push legalization back to 2027 or later.
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Latest on Fresno State basketball gambling scandal: News broke on Friday afternoon of the scope of an ongoing investigation into betting and Fresno State men’s basketball players. Quick hitter in my newsletter here, full report from ESPN here. The most interesting part of the case is that it involves daily fantasy sports for some of the player behavior. One player told ESPN he had played a fantasy “contest” (aka parlay against the house) that involved going over his projected points total. Another player reportedly placed bets and fantasy entries/parlays that involved him going under projected totals. It’s the first time we’ve publicly heard of an integrity issue related to fantasy pick’em apps.
More from the NCAA, per ESPN: “Sports betting issues are on the rise and while the Association, conferences and schools are doing everything possible to protect the games and the students who play them, it's clear the types of bets offered and the prevalence of unregulated betting markets impede our efforts.”
Reading the line: The NCAA is often hyper-focused on the regulated sports betting industry, its expansion, and how it can rein that in. We have rarely heard mentions of “unregulated betting” from the NCAA as made here, which could reference either offshore betting, daily fantasy sports or both. I think the distinction being raised by the NCAA in a short statement is more than a throwaway line.
It’s noteworthy that the case emanates out of California, which has not legalized sports betting, and involves a fantasy entry made ahead of a Fresno State home game. Offshore sportsbooks generally serve the state (illegally); fantasy apps (PrizePicks, Underdog, Sleeper, etc.) also take customers in California as a legal but unregulated offering as a “game of skill.”
The possible inflection point is if the NCAA feels the unregulated space is worthy of its lobbying and pushback. If it is, a concerted effort against offshore and fantasy is arguably an easier lift than getting college betting bans (either total or partial) adopted at the state level.
MLB commish considers reinstating Pete Rose (ESPN): Rose was infamously banned from baseball because he gambled on the sport, including games he managed. Some context from ESPN: “Jeffrey Lenkov, a Los Angeles lawyer who represented Rose prior to his death at age 83 in late September, said he filed the reinstatement petition after he and Fawn Rose, the oldest daughter of Pete Rose, met with Manfred and MLB spokesman Pat Courtney in the commissioner's office on Dec. 17. ‘The commissioner was respectful, gracious, and actively participated in productive discussions regarding removing Rose from the ineligible list,’ Lenkov said of the one-hour meeting in the commissioner's office. Lenkov said he is seeking Rose's removal from MLB's banned list for betting on baseball ‘so that we could seek induction into the National Baseball Hall of Fame, which had long been his desire and is now being sought posthumously by his family.’”
Reading the line: Almost everyone has an opinion on Rose, and few are in the middle (here’s one, for instance). I am agnostic on whether voters would be allowed to put Rose into the Hall of Fame. I can understand the idea that it was a “lifetime” ban and that the penalty has perhaps run its course. From an optics point of view, though, it’s a bad time to open up the conversation about Rose, who’s as well-known for gambling as his accomplishments on the field. With bad press around sports betting almost everywhere you turn and growing concerns about the integrity of sports, it feels like it would be the wrong time to give Rose a pass.
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Gambling news today
March is Problem Gambling Awareness Month (NCPG) | “The National Council on Problem Gambling (NCPG) proudly announces the observance of Problem Gambling Awareness Month (PGAM) throughout March 2025. This year’s theme, “Seeking Understanding,” aims to increase awareness of problem gambling as a serious yet often misunderstood mental health condition. PGAM serves as a crucial platform for improving public understanding, removing barriers to care, and encouraging open conversations about the impact of gambling on individuals, families, and communities. Problem gambling is a growing yet often overlooked public health concern that affects millions of Americans. Approximately 2.5 million U.S. adults suffer from severe gambling problems, with an additional 5 to 8 million facing mild to moderate gambling problems due to their gambling behavior. Problem gambling (sometimes referred to as “gambling addiction” or “gambling disorder”) is gambling behavior that is damaging to an individual, often disrupting daily life and career. These behaviors lead to significant social, financial, and emotional harm, creating an urgent need for support, education, and resources.”
Georgia sports betting faces deadline this week (Legal Sports Report): “Georgia sports betting legislation hit a major snag this week, but a new House filing could hold more promise. The Senate Committee of Regulated Industries and Utilities voted Thursday against Senate Resolution 131, which would amend the state constitution to allow Georgia sports betting. The legislation would give Georgia voters a say on the issue in November 2026. Another bill, Senate Bill 208, is still alive and a House bill was filed Friday. While the legislative session runs until April 4, legislation must cross over chambers by March 6.”
If Georgia doesn’t make progress this week, the odds on any state legalizing online sports betting this year will get much longer, with hopes that Minnesota could still thread the needle.
MGM Resorts and FTC agree to dismiss cyberattack lawsuit (SBC Americas): “MGM Resorts International and the Federal Trade Commission (FTC) are ending a contentious legal dispute over a cyberattack that led to the loss of roughly $100 million. According to documents filed in the U.S. District Court for the District of Nevada, the FTC and MGM Resorts have agreed to dismiss a lawsuit filed by the FTC demanding a civil investigation into MGM Resorts following its well-publicized data breach in September 2023.”
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