Casino gambling in Texas faces long odds this session

On the table for now is a proposed constitutional amendment that would allow a limited number of full resort casinos in the state's most populous areas and along the coast.

It would also grant full casino licenses at the state's three race parks—Lone Star Park in Grand Prairie, Retama Park near San Antonio and Sam Houston Race Park in Houston—and would allow smaller race tracks to apply for licenses to operate casinos or slot machines.

The bill includes provisions for gaming by the state's three federally recognized Native American tribes—the Tigua near El Paso, the Alabama-Coushatta north of Houston and the Kickapoo near Eagle Pass—currently prohibited from running gambling operations by state law.

The bill would need a two-thirds majority in both the House and Senate, and then would have to be approved by voters in a general election.

Economic effects

Supporters say the bill would allow for the creation of tens of thousands of jobs at the resort casinos alone and would bring in billions of dollars to state coffers every year.

Those proceeds would be taxed at 15 percent to 20 percent, with the money going to property tax relief, local governments, gambling addiction programs, education and similar benefits.

"For too long, Texas has propped up neighboring economies at the expense of our own, exporting jobs, revenue and investment as one of only 10 states that prohibits casino-style gaming," said Bill Hammond, president of the Texas Association of Business. "With one simple vote of the people, we could create 74,000 jobs, increase salaries and wages by $3.4 billion, and generate $11.8 billion in annual economic activity once a limited number of casinos are completed."

The proposal is also being counted on to raise the purse money at horse tracks, reviving an industry that once contributed $5.5 billion to the Texas economy annually and supported 36,000 jobs.

The industry has become anemic as neighboring states, such as Oklahoma and Louisiana, have claimed the gaming proceeds that allow them run high-stakes races.

"Additional gaming options will level the playing field and enable us to offer the highest purses in the country," said Andrea Young, president of Sam Houston Race Park.

Support for the measure

Proponents point to a study commissioned by the group Let Texans Decide that showed that more than 80 percent of Texans want the right to vote on expanding gambling in the Lone Star State.

"Maybe it would be a vote 'no,' but they want the right to vote on it," said Rep. John Kuempel, R-Seguin, a supporter of the bill.

Such a vote will not happen before the session ends in May, as the Texas House appears to be opposed to the idea for now—evidenced by a recent vote on the Texas Lottery Commission in which a majority of representatives voted to kill the lottery.

The lottery survives for now, but the vote shows just how little appetite there is in the lower chamber to expand gambling.

"I think that tells you that gambling is not going to pass," said Rep. Gary Elkins, R-Houston, whose district includes the Sam Houston park, and who said he would consider supporting the right kind of legislation if it ever does make it to the House.

"We need to see how the bill comes out, what our options are," he said, adding that he wants to make sure it offers equal opportunities to all businesses. "I'm not about picking winners and losers, but if the bill is going to open up to where any business can apply for a casino, then I'd have to seriously look at it."