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What level of crime is Gambling in Texas? The Penal Code classifies Gambling as a Class C misdemeanor. Learn more about the penalty range for this offense in. The Texas Attorney General has stated that as long as participants do not risk money or anything of value to try to win any prize, the game is not illegal under. Texas would appear to be an unlikely sports betting adopter, but betting and create a consumer protected online sports betting market in Texas. Penalties for Illegal Gambling in Texas and Federal Law. Being convicted of gambling is considered a Class C misdemeanor in Texas, and the maximum fine you.