For the sixth straight Legislative session, Texas lawmakers have filed a bill to establish a gaming commission to oversee the development of casino gambling at resort areas, cities with more than 675,000 people and horse racing tracks. House Joint Resolution 40, sponsored by state Rep. Carol Alvarado, D-Houston, was filed in November and referred to the State Affairs committee March 3.
If passed, HJR40 would allow casino gambling in six Texas cities: Houston, Dallas, Fort Worth, El Paso, San Antonio and Austin. Supporters, including officials with the Sam Houston Race Park, located off the Sam Houston Parkway in Cy-Fair, said the bill could bring in more revenue to the state, both from the casinos themselves and from revitalizing the horse racing industry.
Voters elected former state Sen. Dan Patrick, who has sponsored legislation to tighten regulations on game rooms in the past, to the seat of lieutenant governor in 2014, shifting the focus somewhat from passing legislation that opens up gaming possibilities to defending against legislators who want more restrictions on eight-liner game rooms and historical racing machines.
However, pro-gambling groups like Let Texans Decide continue advocating for putting the decision in the hands of voters. A two-thirds vote of support from both the Texas House of Representatives and Senate is required to move HJR40 forward. Following that vote, an amendment would be placed on the ballot this November.
Let Texans Decide hired Austin-based WPA Opinion Research to conduct a poll of 1,001 registered Texas voters in 2013. The poll found roughly 82 percent of those surveyed support putting the amendment on the ballot, regardless of whether they support gambling expansion itself.
Other studies into the economic effects of casinos and video gambling suggest an overall economic gain is not always guaranteed. A 2006 study from the Texas Public Policy Foundation determined that, unless 50 to 75 percent of profits come from gamblers from outside the state, casinos will not provide much of a boost. As much as 75 percent of tax revenue generated by gambling is money that would have been spent on other goods and services in the state anyway, researchers concluded. Increased criminal justice costs and regulatory costs must be taken into account as well.
Historical racing
In late August 2014, the Texas Racing Commission approved a rule change allowing historical racing at Texas horse and dog tracks. Historical racing is played on electronic machines—similar to slot machines—and involves players betting on past races without any information regarding the horse names and race dates.
A Travis County judge struck down the rule change in November, claiming the TRC did not have authority to implement it. In state budget talks this February, Senate budget writers reduced the commission's budget to zero to send a message.
"This isn't about gambling to me," Finance Committee Chairwoman Jane Nelson said. "It's not about horse racing to me. It is about an agency that has gone rogue, in my opinion. If an agency doesn't respect the difference between making laws and following laws, we've got big problems on our hands."
The TRC regulation required each track apply for permission before installing the machines. TRC officials said no specific machines had been approved and they planned to comply with state regulations. The commission does not plan to appeal the decision due to lack of funds.
In a released statement, Andrea Young, president of the Sam Houston Race Park, said she was disappointed in the decision.
"[The] decision is a blow to the Texas horse industry and thousands of hardworking horse men and women," she said. "We obviously disagree with the judge's decision and are considering our options."
