In the United States, California and Texas have some of the strictest gambling laws. Both states have a firm stance on any form of gambling, making it difficult for gambling companies to operate. But which state has an edge over the other?

Out of these two states, Texas is known to have the strictest regulations, as its gambling laws restrict all forms of gambling, including sports betting and online gaming. However, these strict regulations haven’t stopped residents in the state of Texas from visiting out-of-state or offshore casinos and playing their favorite online games. These platforms often have many games and payment options, including digital currencies, which just goes to show how online gambling keeps changing even with strict laws.

On the other hand, the California Gambling Control Commission (CGCC) controls gambling laws in the state, and despite its strict gambling laws, state lottery, licensed cardrooms, horse racing facilities, and tribal casinos are all allowed to operate. For this reason, California seems to have the edge.

Although the CGCC permits these forms of gambling, it has yet to regulate online sports betting and casino-style gaming. In November 2002, voters rejected bills that would have legalized online gaming and sports betting in the state, and in 2025, California continues to push against online gaming platforms operating in the state. 

In October 2025, Governor Newsom signed a bill that prohibits the operation, promotion, or facilitation of sweepstakes casinos in California and creates new criminal and civil penalties. By implication, this would allow the CGCC to crack down on online sweepstakes casinos in the state. Assembly Bill 831, which will go into effect in January 2026, will make it very difficult for online casinos that mimic sports betting platforms to operate in the state.

Apart from Assembly Bill 831, a Los-Angeles City Attorney, Hydee Feldstein, has also filed a lawsuit against a popular sweepstakes platform. With these developments, California has now joined states like Connecticut and New Jersey in fighting against sweepstakes. 

While California allows a few forms of gambling, Texas is the direct opposite. The gambling laws in Texas are the strictest in the country, making it nearly impossible for sports betting or commercial casinos to thrive. 

Texas only permits horse or greyhound racing, the state-operated lottery, and bingo games, which are usually run by non-profit organizations. Texas gambling laws also permit social gambling, but this type of gambling is only allowed if it’s between friends and if the organizer of the game isn’t profiting from it. 

Although the Texas government has taken a strict stance on gambling, lawmakers believe that the state can benefit from the gambling market. Given that Texas’s gambling market is still untapped, lawmakers have pushed bills such as HJR 134 and SJR 65, explaining how the state can legalize gambling and benefit from it. 

These bills are still under review, but if they are passed into law, Texas could become a hotspot for betting companies.

California now has the better gambling laws of both states, and it could surpass Texas by far if it expands its current gambling framework to allow online sports betting.