In March, Lt. Gov. Dan Patrick directed state senators to explore ways to close “gambling loopholes” that allow online prediction markets to operate in Texas, raising concerns that state elections and sporting events could be manipulated for profit.
Patrick’s directive was the first time a state leader officially acknowledged the existence of rapidly growing prediction markets, which let users wager on outcomes tied to anything from the weather to election winners and sports scores.
Most prediction markets didn’t operate in the U.S. before 2025.
Any attempts by the Texas Legislature to restrict prediction operators, however, would run into federal roadblocks as the Trump administration insists that oversight belongs to a U.S. agency, not the states.
