Summary: Backed by $2M in campaign contributions and by Abbott and Phelan, the 88th Texas Legislature is considering several bills, which call for a statewide vote on commercial casinos and sports wagering. If approved, gaming companies could apply for licenses to build seven high-end “destination resorts” across Texas, including two in the Dallas-Fort Worth. / State civics is an integral part of Willow Park civics and of Willow Park Civics. WPC is providing a blog of articles on specific legislative topics, during the 88th Texas Legislative Session. We will update and repost this blog as new information develops about TX STATE GAMBLING LEGISLATION.
Latest Update: reposted Friday, 31 March, 2023 Friday, 03 March, 2023; Originally Posted 17 January 2023
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TX State Gambling, 88th TX Legislative Session
Week ending Friday, 31 March, 2023
• Patrick Says Virtually No Senate Republicans Support Casinos, Sports Betting, The Texan, 24 March 2023, Excerpts. Republican Lt. Gov. Dan Patrick said in a media interview that there is virtually no support for expanding gambling among Republicans in the Texas Senate. / The comments are similar to ones Patrick made before the beginning of the 88th Legislative Session.
The lieutenant governor said Democrats in both chambers would unify behind casinos and sports betting. With 12 Democrats and 19 Republicans in the Senate, that means the measure could pass without the majority of the GOP caucus.
“I’m not letting the Democrats run the Senate, because if you have more Democrats voting for a bill than Republicans … that means the Democrats are running the show,” Patrick said. “People didn’t elect me to let the Democrats decide what we do. We would need 15 to 16 votes out of our 19 (Republican members) for me to even think of it.”
The House certainly seems more amenable to gambling expansion than the Senate. Speaker Dade Phelan (R-Beaumont) said he’d be open to “high-quality” casinos, and the House State Affairs Committee heard testimony from heavy-hitting gambling proponents this week such as Las Vegas Sands Corp.
• Gambling Industry, Lawmakers Testify for Sports Betting, Casinos: ‘Texans Value Freedom and Liberty, The Texan, 20 March 2023, Excerpts. Proponents of expanding gambling told the Texas House State Affairs Committee during a legislative hearing that casinos and sports wagering would bring additional tax revenue to the state, and that Texans should be able to vote on the issue in November. On Wednesday, the committee heard testimony on bills by Rep. Jeff Leach (R-Plano) — House Joint Resolution (HJR) 102 and House Bill (HB) 1942 — to bring sports betting to Texas. His bill proposes a 10 percent tax on sports betting.
“Texans value freedom and liberty. We also love our sports,” Leach said, contending there should be a “regulatory framework” to protect consumers who are already engaging in sports betting unlawfully.
“I believe Texans should be able to choose what is right for them,” Leach argued.
• Texas House Committee Prioritizes Gambling Expansion Over GOP Priorities, Texas Scorecard, 20 March 2023, Excerpts. House Joint Resolution 155 [Legican] by State Rep. Charlie Geren (R–Fort Worth) is a constitutional amendment proposal that, if approved by Texas voters, would allow casino gambling in eight “destination resorts” across Texas:
Two casinos in the Dallas-Fort Worth area
Two casinos in the Houston-The Woodlands-Sugar Land area
One casino in the San Antonio-New Braunfels area
One casino in the Corpus Christi area
One casino in the McAllen-Edinburg-Mission area
One additional casino in a county that is at least 100 miles from any of the previous areas
Two-thirds of the House and Senate, as well as a majority of Texas voters, will have to approve one of the proposed constitutional amendments before Texas can allow casino gambling, a high hurdle for the controversial proposal.
Week ending Friday, 03 March, 2023
• Texas Gov. Greg Abbott Signals Support for Casino Gambling, Texas Scorecard, 24 February 2023, Excerpts. Embracing the destination resort-style casinos envisioned in multiple legislative proposals this session, Abbott signaled his support for a “gaming version of the Great Wolf Lodge” in an interview with the Fort Worth Star-Telegram.
State Rep. Charlie Geren (R–Fort Worth) has filed House Joint Resolution 97 [Legiscan], a constitutional amendment to allow casino gambling in seven resorts across Texas, while State Sen. Carol Alvarado (D–Houston) has filed Senate Joint Resolution 17 [Legiscan], which would also authorize “casino gaming at a limited number of destination resorts” and allow sports wagering.
“If it can be built in a way that is, kind of like a professional operation that provides a form of entertainment for people, that’s something I can be open to,” Abbott told the Star-Telegram. / Two-thirds of the House and Senate, as well as a majority of Texas voters, will have to approve one of the proposed constitutional amendments before Texas can allow casino gambling.
Week ending Friday, 10 February, 2023
• Gambling proponents have a new plan to ask Texas voters to legalize casinos, The Texas Tribune, 03 January 2023, Excerpts. If state lawmakers agree, Texas voters will have the final say on whether the state will expand gambling and casinos this November.
Advocates for legalizing casinos in Texas unveiled new legislation Friday that makes a stronger effort to partner with horse-racing operators throughout the state — a retooled approach after their 2021 push came up short.
State Rep. Charlie Geren, R-Fort Worth, filed House Joint Resolution 97 (HJR 97, Legscan], which would let voters decide in the November election if they want to legalize casinos. If approved, gaming companies could apply for licenses to build seven high-end “destination resorts” across Texas, including two in the Dallas-Fort Worth area and two in the Houston area.
• Republican Lawmaker Proposes Statewide Vote on Commercial Casinos, Sports Wagering, The Texan, 06 February 2023, Excerpts. A Fort Worth Republican filed a proposed constitutional amendment to permit sports wagering and allow the construction of seven commercial casinos in metropolitan areas across Texas.
Rep. Charlie Geren (R-Fort Worth) filed House Joint Resolution (HJR) 97 on Friday, touting the potential for additional tax revenue in the state’s coffers. The Texas Constitution currently prohibits gambling with exceptions such as the Texas Lottery, philanthropic raffles, and charitable bingo, all of which require licensure.
“Polling over the last year makes it clear that more than 85 percent of Texans want the right to vote on this issue, Republicans and Democrats alike,” Geren said in a news release. “It is high time that the Legislature listens to the voters and allow them to decide this issue. I, for one, am not in the business of denying the voters of Texas their voice when their preference is so clear.”
• Sports-betting advocates return to Capitol with narrower bill, new Republican author, The Texas Tribune, 06 February 2023, Excerpts. Advocates for legalizing online sports betting in Texas debuted new bills Monday that take a narrower approach than they did in 2021 — and feature a new author in the state Senate who is a Republican.
The involvement of Sen. Lois Kolkhorst, R-Brenham, who is carrying the legislation, is notable because she is an ally of Lt. Gov. Dan Patrick, who is seen as the biggest hurdle to expanding gambling in Texas. The previous sports-betting bill filed in the last legislative session was carried by Democrat and got virtually no traction in the GOP-led Senate.
Like it was in 2021, this year’s legislation is backed by the Texas Sports Betting Alliance, a coalition of pro sports teams in the state, racetracks and betting platforms. Members include heavy hitters such as the Dallas Cowboys, the Dallas Mavericks, the Houston Astros, the San Antonio Spurs, the PGA Tour and DraftKings. Former Gov. Rick Perry is also working with the alliance on the issue this year.
• Texas Lawmakers File Legislation to Open Casinos, Texas Scorecard, 03 February 2023, Excerpts. The casino lobby in Texas has poured millions into lawmakers’ campaign coffers. Will it be enough? State Rep. Charlie Geren (R–Fort Worth) announced on Friday the filing of House Joint Resolution 97, a constitutional amendment to allow casino gambling in seven resorts across Texas.
“Every year, Texas is losing billions to neighboring states that allow gaming. I believe it’s time we allow Texans to vote on bringing that money and the benefits back to Texas,” said Geren.
Two-thirds of the House and Senate, as well as a majority of Texas voters, will have to approve the constitutional amendment before Texas can allow casino gambling.
State Sen. Carol Alvarado (D–Houston) has filed Senate Joint Resolution 17 in the Senate, which would also authorize “casino gaming at a limited number of destination resorts” and allow sports wagering. Alvarado has been filing legislation to legalize gambling in Texas since 2009
Both bills create a Texas Gaming Commission that would decide who gets the coveted casino deals.
According to Transparency USA, the pro-gambling Texas Sands PAC doled out $2 million to Texas candidates during the 2022 election cycle, including $300,000 to House Speaker Dade Phelan (R–Beaumont), $225,000 to Lt. Gov. Dan Patrick, $200,000 to Gov. Greg Abbott, and $50,000 to Comptroller Glenn Hegar, all Republicans.
Week of 03 February 2023
• Wanna bet? Texas Legislature to reconsider legalizing casinos and sports betting, The Texas Tribune, 27 January 2023, Excerpts. Gambling and sports betting proponents are renewing their push for expansion in Texas after legislation failed to gain momentum during the last regular session.
This time is different, advocates insist, arguing support has increased in the Legislature.
Gambling is largely illegal in Texas except when it comes to the lottery, horse and greyhound racing and bingo. Texas also has three tribal casinos, which are permitted under federal law.
Right now, there are two main camps when it comes to gaming expansion: The late Sheldon Adelson’s gaming empire Las Vegas Sands is pushing to legalize casinos — specifically high-quality “destination resorts” in the state’s largest cities — while a coalition of sports teams and betting platforms are focused solely on legalizing mobile sports betting.
The latter industry has earned the support of former Gov. Rick Perry, who became a spokesperson for the Texas Sports Betting Alliance. In an interview, Perry argued that legalizing sports betting in Texas is not “an expansion of gambling” and suggested Texans already participate in the practice in other states or illegally.
As of Thursday, Las Vegas Sands had nearly 70 lobbyists registered with the Texas Ethics Commission, with the value of the contracts totaling well into the seven figures. The political action committee Texas Sands PAC gave at least $2.2 million in contributions to statewide officials and lawmakers of both parties during the 2022 election cycle.
The gaming industry appears to have gained allies in Gov. Greg Abbott and House Speaker Dade Phelan, although their positions seem to include ensuring casinos in Texas remain “professional” entertainment environments. On the other hand, Lt. Gov. Dan Patrick has signaled gaming-related legislation would likely not have much “movement” this session. In 2021, bills regarding gaming expansion received committee hearings in the House but didn’t make it to the chamber floor. They received no hearings in the Senate.
A recent poll from the University of Houston found 75% of adult Texans support legislation to let voters decide on legalizing casinos. There was also a majority of support among Republicans and people who identify as born-again Christians.
Complicating the push, it seems the two gaming camps are competing against one another, rather than working together, with sports-betting advocates seeing their cause as more palatable for lawmakers and remaining neutral on casinos in Texas.
• Speaker Dade Phelan Open to ‘High-quality’ Casinos That Contribute to Economic Development, The Texan, 12 January, 2023, Excerpts.
Speaker Dade Phelan (R-Beaumont) indicated in a news conference at the Capitol that he would be open to legalizing casinos in Texas, repeating similar sentiments he has expressed in the past.
“I want to see destination-style casinos that are high-quality and that create jobs, and that improve the lifestyles of those communities,” Phelan reportedly said Thursday. The speaker also contended the “average voter” would approve, and that he personally lives near casinos due to his Beaumont-area district’s proximity to Louisiana.
Dr. Miriam Adelson, the majority shareholder of Las Vegas Sands Corp., dumped millions of dollars into Texas elections in 2022 personally and through Texas Sands, her company’s political action committee in Austin. She even cut a $1 million check to Gov. Greg Abbott’s campaign.
Phelan and Lt. Gov. Dan Patrick also received donations of $150,000 apiece from Texas Sands.
[Editorial Note: Dade Phelan's Political Action Committee (PAC) was the second largest contributor to the campaign of Willow Park's Texas State House of Representative District 60 Glenn Rogers.
Abbott, who has been an opponent of loosening Texas gambling laws, said last year that he would be amenable to the possibility of “professional” gambling options.
Patrick told Austin media outlet KXAN that he does not expect “any movement” on the issue this year. He previously shut down the idea during the 87th Legislature in 2021.
Lifting the casino ban or other gambling restrictions would require an amendment to the Texas Constitution, which would need the approval of two thirds of each house of the Legislature and a majority of voters statewide.
Supporters of legalizing casinos point to the money that flows out of state as Texans go elsewhere to gamble. Proponents of sports betting similarly say that there should be a legal option in the Lone Star State so the activity does not continue to operate in the dark without the consumer protections of a regulated market.
Others contend that legal gambling options could be an opportunity for the State of Texas to collect extra tax revenue, though a Legislature benefiting from a $32.7 billion budget surplus this biennium is unlikely to be receptive to that argument.
For his part, Phelan’s recent comments and those he made in 2021 center on economic development for the area surrounding the potential casinos. The tax argument is less persuasive to him.
• Flush With Gambling Lobby Cash, Phelan Primed to OK Texas Casinos, Texas Scorecard, 16 January 2023, Excerpts. Casino gambling interests poured big money into campaign coffers of Texas politicians, including House Speaker Dade Phelan... the pro-gambling Texas Sands PAC doled out $2 million to Texas candidates during the 2022 election cycle, including $300,000 to Phelan, $225,000 to Lt. Gov. Dan Patrick, $200,000 to Gov. Greg Abbott, and $50,000 to Comptroller Glenn Hegar, all Republicans.
Dr. Miriam Adelson, majority shareholder in the multibillion-dollar Las Vegas Sands resort casino empire, set up the Texas Sands PAC in 2022 to help get casino gambling across the finish line this session. Sands lobbied Texas lawmakers hard during the 2021 session but failed to see gambling legislation advance. The PAC also gave campaign cash to almost three-fourths of Texas legislators, in amounts ranging from $3,000 to $60,000.
On top of the campaign cash, PlayTexas reports more than 300 gaming lobbyists are currently targeting Texas’ 181 lawmakers—the largest army of paid influencers for any issue before the Legislature this session. Las Vegas Sands alone had 74 lobbyists working in Texas a month ahead of the session’s January 10 start, according to Casino.org.
With Phelan openly on board, Patrick is seen as the hurdle; he has consistently opposed legalizing gambling, saying gaming legislation would “never see the light of day.” / But persistence may be paying off for Sands, which reportedly gave Patrick $2.5 million over the past three years.
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