Lt. Gov. Dan Patrick issued new interim charges to the Texas Senate on Friday, March 27, signaling an aggressive move to regulate—or potentially shutter—the state’s burgeoning prediction market industry.
The directive comes as “gray market” platforms like Kalshi and Polymarket gain a foothold in the Lone Star State, even as traditional sports betting and Texas online casino expansion remain stalled.
Patrick instructed the State Affairs Committee to study the “sudden inundation” of prediction markets. These platforms currently operate through a federal loophole, treating event contracts as derivatives rather than traditional wagers. This allows Texans to legally bet on election outcomes and sports results despite the state’s strict bans on sports wagering and casino gaming.
