The race for the Texas attorney general’s office could have major ramifications for the sweepstakes casino industry in the Lone Star State. Mayes Middleton, who two years ago supported a bill that would have banned sweepstakes casinos, lost his bid to become the next Texas AG.
Instead, Nathan Johnson, a proponent of a statewide referendum on land-based casinos, won the election. When Gina Hinojosa takes over as Texas governor on January 19, Nathan Johnson will take office as attorney general.
When he does, the state’s highest-ranking prosecutor will represent a wild card in the affairs of Texas sweepstakes casinos.
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Mayes Middleton’s sweepstakes casino ban
On February 8, 2025, three Texas state senators introduced Senate Bill 517 to the Texas Senate. State Senator Mayes Middleton was the primary sponsor for the draft legislation, which would have changed the definition of illegal gambling in the state.
SB 517, co-sponsored by Sen. Bob Hall and Sen. Phil King, would have increased penalties for offenses. While the bill’s main focus was the legality of land-based gambling machines called eight-liners, it also addressed the status of online sweepstakes casinos.
The new law would have made online sweepstakes sites—including casino sites and sweepstakes sportsbooks—illegal under Texas law.
Senate Bill 517’s legislative history
The Texas Senate Committee on State Affairs voted 9-0 on April 14, 2025, to advance the draft legislation to the Texas Senate floor. On May 8, 2025, the full Texas Senate voted 31-0 to approve SB 517.
That same day, the Texas House of Representatives received the bill as House Bill 487, sponsored by Texas Representative Carl H. Tepper. Although the House received the bill, it did not vote on it on June 2, 2025.
The Texas legislature only convenes in odd-numbered years, so that was the last chance lawmakers had to pass a sweepstakes ban before the November 2026 mid-term elections.
Mayes Middleton’s campaign pledge
During the midterm election campaign, Mayes Middleton promised to enforce Texas’s laws as the state attorney general. The Texas AG has no role in crafting new legislation, but he or she can interpret the laws in a way that might allow direct intervention.
A Texas AG opinion can affect operators, such as the Texas Attorney General’s 2016 opinion that fantasy sports is illegal gambling. Attorneys general in other states have sent cease and desist letters to operators, accusing them of running illegal gambling sites.
In Kentucky and Florida, the state attorneys general have filed lawsuits against sweepstakes casino operators, including VGW Holdings in both states. As a result, Middletown appeared poised to take action in 2027 against the Texas sweepstakes casino industry.
2026 Texas Attorney General race
Nathan Johnson won the Texas Attorney General’s race with 5,133,740 votes, with 97.2% of the vote counted. He collected 52.3% of the vote, compared to 4,502,855 votes and 45.9% of the electorate for Mayes Middleton.
Nathan Johnson’s campaign focused on consumer protection, anti-corruption, and the attorney general’s office’s ordinary responsibilities. His victory does not mean the end of regulatory oversight for sweepstakes casinos.
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Nathan Johnson’s stance towards online sweepstakes casinos
In fact, Johnson’s emphasis on consumer protection could mean additional scrutiny for dual-currency gambling sites. Given his stance on the “ordinary responsibilities” of the AG’s office, he might not unilaterally file lawsuits against operators like VGW Holdings.
Johnson major statement on gambling-related issues is his pledge to support a statewide referendum on land-based casino legalization, a move supported by Dallas Mavericks owner Patrick Dumont.
States with substantial land-based casino industries like California, Oklahoma, and New York have passed sweepstakes casino bans in the past two years. The brick-and-mortar industry dislikes online competition, so it often pressures officials to enforce bans on online operators.
If so, the Texas sweepstakes industry could still face increased regulatory oversight.
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