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Gambling in Texas: Commercial Casino Legislation Folds Its Hand

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A craps dealer prepares stacks of casino chips. David Becker/Getty Images/AFP.

There has been growing support for commercial casinos and sports betting in Texas, but the last two legislative attempts to regulate casinos came up just short of the two-thirds majority in the House needed to advance the bills to the Senate to change the state constitution.

Know When to Fold’em

Two bills were in play to change the state constitution which would then go to the voters to decide whether or not to allow commercial casinos. Rep. Charlie Geren’s HJR 155 and Rep. John Kuempel’s HB 2843 both passed on second readings by votes of 92-51-2 and 63-49, respectively. However, it wasn’t the two-thirds majority required to advance the bills to the Senate.

Despite delaying the vote several times to shore up the additional votes, Rep. Geren said on the floor, “Members, I do know when it’s time to fold them.”

In the event it had passed, the chances of it advancing through a Republican-dominated Senate were slim and none. The legislation called for eight resort casinos with seven tied to the state’s horse tracks throughout the state.

The eighth casino would be up for grabs to the highest bidder and only allowed in a county that voted for the constitutional amendment allowing casino gambling in the Lone Star State.

Divided Opinions and Economic Potential

“We have watched other states benefit from Texas gambling for too long… Each year, millions of our Texans go to Oklahoma, New Mexico, Louisiana, or Arkansas and they spend billions of their entertainment dollars in those states,” said Geren.

Geren proposed amending the constitution to allocate 80% of casino revenue towards increased salaries for public school teachers and to provide funds to retired teachers, with the remaining 20% for administrative costs, horse racing, and police funding.

There was vocal support for the bill but others like Rep. Matt Shaheen claimed the casinos would increase domestic violence and sex trafficking in the state.

“Domestic violence will go vertical,” Shaheen said. “Women married to a problem gambler are 10 times more likely to go to the ER.”

What Does the Future Hold?

This was the last gasp until 2025 as the legislature only meets every two years but there are several big names behind the effort. Las Vegas Sands and Fertitta Entertainment are among those interested in getting into the gambling game in Texas, as is a billionaire entrepreneur and owner of the Dallas Mavericks, Mark Cuban.

Cuban remarked that gambling was only part of the entertainment package that could be assembled via a world-class resort when he said, “There’s a reason why Vegas is Vegas. And it’s not just gambling. There’s gambling in a lot of places.

It’s the fact there’s resorts for families, for bachelorette and bachelor parties, for conventions. If you create a new arena, whether it’s for us, for us and the Stars, or whatever it may be, and you make that a centerpiece? How cool would that be?”

Representative Geren had stated the economic impact on the state would be tremendous with an estimated 70,000 permanent jobs and approximately 100,000 temporary construction jobs that would produce billions of dollars in new development investment.

There is undeniable momentum afoot for commercial casinos in Texas with a reported 63% of residents surveyed favoring casino gambling. But more political muscle will be required if the legislation in 2025 is to be successful.