Hindered by ethical and religious objections to gambling and a healthy state bank account that gives little impetus to look for additional revenue streams, a bill to open Texas to Vegas-style casinos and revitalize the state's horse racing industry has stalled in a Senate committee and is likely dead for the session.
But some lawmakers say the time is drawing near for voters to decide whether to start keeping at home some of the estimated $2.5 billion Texans spend on gambling every year in neighboring states.
"I know the day is coming this will pass," said Sen. John Carona, R-Dallas, the bill's author. "This is not going to be an issue that Texas never addresses. We're coming closer and closer with each year that passes."
Lawmakers say a plan might have a better chance, or might at least receive serious consideration, if legislators were to hold a special session in 2014 on school funding.
The bill's major opposition comes from moral objectors who view gambling as a tax on the poor, a contributor to societal ills such as addiction and a magnet for organized crime.
Some tea party groups have also objected to the idea of basing a major Texas economic engine on something they view as unstable.
"It's a very cyclical kind of economy," said Jarrod Atkinson of the Dallas Tea Party. "Like Vegas, where when the economy went bad, man, did Las Vegas go bad. I don't want that here. I want Texas to be built on good, long-term industries, not tourism [and] not something that's going to go belly up as soon as the economy turns."
Details of the proposal
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."
