Introduced earlier this year by Democratic Representative Harold Dutton, House Bill 1121 sets out plans to legalise sports wagering via the internet and similar platforms.
The Texas Department of Licensing and Regulation would assume responsibility for overseeing the market, including awarding licences to any operators wanting to launch in the state.
Licences would cost $250,000 each, though only five permits may be issued at any one time.
If more than five operators apply for a licence, the Department would select the operators that it determines would best adhere to licensing requirements and maximise sports betting revenue for the state.
Operators that secure a licence would be subject to a tax rate of 6.25% on sports betting revenue generated in Texas. This would be payable to the Department on a monthly basis.