The question a lot of people have, though, is whether or not that bowl of chili is Texas chili. Texas vs. non-Texas chili: the key differenceThere is a difference between Texas chili and non-Texas chili. READ MORE: The Texas Chili Controversy And Why It MattersIn Texas, the answer to the bean debate is always no beans. If it has beans in it in Texas, then it's not chili. The no-bean rule is such a big deal that chili competitions in the state of Texas actually have rules outlawing beans.