What are chances for casino gambling in Texas? Here’s what the candidates say
Some candidates for governor and lieutenant governor are expressing openness to legal gambling but not a full embrace.
Advocates hope legalized gambling — in casinos or sports betting — will fare better this legislative session than proposals did when lawmakers last met in 2021. But key to gambling’s success in Texas is the makeup of the state offices on the Nov. 8 ballot.
Republican Gov. Greg Abbott and his Democratic opponent Beto O’Rourke are willing to talk about bringing limited gambling in Texas. Lt. Gov. Dan Patrick, a Republican, and Democratic nominee for lieutenant governor Mike Collier have expressed reservations — though Collier’s team vowed the candidate would let bills move through the process if elected. Any expansion of gambling would have to go to voters for approval as a constitutional amendment.
Political science experts are skeptical about the chances of legalized gambling passing through the Legislature.
Advocates disagree.
The 2022 election cycle comes after a multi-million dollar push in recent years to bring destination resort-style casinos to Texas, an effort led by casino and resort company Las Vegas Sands through The Texas Destination Resort Alliance. Thousands have been invested in campaign contributions ahead of Election Day.
“They are committed to Texas, and they’ve been articulating that for the past two years — that they’re here for the long haul,” said Matt Hirsch, a spokesperson for the Texas Sands PAC.
The legislative session starts Jan. 10. Early voting began Monday and runs through Nov. 4.
Governor candidates open to expanded gambling
When lawmakers tried to expand gambling in 2021, legislation didn’t make it far. Bills for limited casino gambling and sports betting got committee hearings but didn’t make it to the floors of the House or Senate for consideration by the full chambers.
“Big controversial ideas like this takes several sessions to pass,” said Brandon Rottinghaus, a University of Houston political science professor. He added that’s true even if the governor and lieutenant governor are on board.
In response to a question in the Star-Telegram’s candidate questionnaire, Abbott didn’t shut down the prospect of Texas allowing “professional entertainment” options in the area of gambling.
“We don’t want slot machines at every corner store, we don’t want Texans to be losing money that they need for everyday expenses, and we don’t want any type of crime that could be associated with gaming,” Abbott said. “But, if there is a way to create a professional entertainment option for Texans, I’d take a look at it in the coming legislative sessions.”
His concerns have traditionally been brought up by opponents of expanded gambling.
Texas has a lottery and allows some horse and dog racing. There are a few casinos with limited gaming on tribal lands in Texas.
O’Rourke also hasn’t ruled out legal gambling in Texas. In his candidate questionnaire, O’Rourke said revenue from gambling could help fund schools and lower property taxes. O’Rourke is open to exploring “legalizing and closely regulating” sports betting and letting voters decide on “destination-style casinos in our biggest metro areas and lifting burdensome limitations on casinos already being operated by our Tribal nations.”
“I’m confident that with with regulation, with some controls, there is a way to responsibly do this,” O’Rourke recently told the Star-Telegram’s editorial board. “But I’ll admit I don’t know enough about this to just categorically say ‘Yes, we should do this.’ I think it’s not something that we should walk lightly into. And therefore, I want to make sure that I’m listening to the legislators and the people of this state before we we go forward, but it’s certainly an opportunity.”
What are the odds in the Senate?
Patrick, who influences what bills pass as president of the Texas Senate, did not respond to a candidate questionnaire and his campaign did not respond to subsequent interview requests asking about his position on gambling. But in the past he’s expressed opposition.
“My sense is that the biggest impediment to expanded gaming in Texas has been Dan Patrick,” Rottinghaus said.
In a February 2021 interview on “The Chad Hasty Show” Patrick wasn’t buying the revenue generation argument for gambling.
“If you want to pitch your casinos or you pitch your sports books, talk about jobs, talk about tourism,” Patrick said.
Patrick’s chief strategist Allen Blakemore is a lobbyist for the Sports Betting Alliance.
Collier too has been skeptical of the revenue argument — one that may be weakened in a legislative session in which lawmakers are expected to have a hefty surplus.
“Legalizing gambling to increase state revenue is a false choice,” Collier said in his questionnaire. “With several massive corporate tax loopholes on the books, we have more than enough places to turn to in order to fully fund our public schools, fix our power grid, and rein in property taxes for homeowners.”
A spokesperson for his campaign clarified Wednesday that Collier is not necessarily opposed to casino gambling or sports betting and won’t be an obstacle for senators who want to pursue the policies.
“Unlike Dan Patrick, he will make sure that legislation concerning gambling gets a hearing in a committee and gets its fair shake on the floor of the Senate, which has not happened thus far,” said Collier campaign manager Ali Zaidi.
The primary sports betting bill and casino gambling bills from 2021 were left pending in House committee. Senate versions didn’t get committee hearings.
House Speaker Dade Phelan is running unopposed in November. Phelan spokesperson Enrique Marquez, who has since been named chief of staff, told the Star-Telegram in December that the issue is expected to come up in the next legislative session.
“Speaker Phelan has previously emphasized that these issues are best viewed through the prism of being long-term commitments rather than short-term revenue sources, and believes they warrant a broader discussion on the economic impact that large entertainment investments can have on a community,” Marquez said in a statement at the time.
Advocates’ election, legislative strategy
Abbott and Patrick have received thousands from advocates for legal gambling in Texas.
The Texas Sands PAC has spent about $1.5 million since February, Texas Ethics Commission records show. That includes $200,000 to Abbott and $150,000 to Patrick. Sand’s chairman and CEO Sheldon Adelson, who died in January 2021, donated $500,000 to Abbott in 2020. His wife Miriam Adelson gave Abbott a $1 million contribution in September.
The Texas Destination Resort Alliance’s messaging is focused on resort-style casinos and the overall economic impact they could have on the state.
Donations from the Texas Sands PAC have gone to both Democrats and Republicans. SMU Political Science Professor Cal Jillson said the group is likely targeting expected winners. He doubted the donations will ultimately change the fate of legal gambling in Texas.
“I think that a major Democratic sweep might bring us casino gambling, but I don’t expect a major Democratic sweep, so I don’t expect casino gambling either,” Jillson said.
The Sports Betting Alliance has been focused on talking with lawmakers they know will be returning come January, said spokesperson Cara Gustafson. Post election, the group will likely shift focus to educating freshman members and returning incumbents who faced an election challenger, Gustafson said. Texas Ethics Commission records show the group donated $10,000 to the Texas Democratic Party and $25,000 to the Texas Republican Party in July for party convention sponsorship costs.
In addition to added revenue, the group is focusing its argument for sports betting on the size of the illegal market — something Gustafson says has garnered interest from lawmakers.
So how likely is sports betting to pass?
“I feel like we’ll have a better sense of that once everyone gets past the election, but I will say that we are going to put 150% effort into increasing any chance we have,” Gustafson said.
Texas candidates’ stance on gambling
Here’s how the Democrats for governor and lieutenant governor responded to the Star-Telegram’s candidate questionnaire. They were asked: Should Texas legalize casino gambling? Should the state legalize sports betting? If so, what should be the framework and parameters?
Greg Abbott (Republican, incumbent for governor): We don’t want slot machines at every corner store, we don’t want Texans to be losing money that they need for everyday expenses, and we don’t want any type of crime that could be associated with gaming. But, if there is a way to create a professional entertainment option for Texans, I’d take a look at it in the coming legislative sessions.
Beto O’Rourke (Democrat for governor): In addition to expanding Medicaid and legalizing marijuana, allowing limited forms of gambling in Texas would generate billions of dollars in new state revenue every year that we could use to increase school funding and lower property taxes. I am open to exploring the idea of legalizing and closely regulating sports bettings, as two-thirds of U.S. states have done. I’m also open to letting voters decide on destination-style casinos in our biggest metro areas and lifting burdensome limitations on casinos already being operated by our Tribal nations, while working with local leaders and community members to ensure that any casino in Texas benefits the community in which it operates.
Dan Patrick (Republican, incumbent for lieutenant governor): Did not respond to the Star-Telegram’s candidate questionnaire.
Mike Collier (Democrat): Legalizing gambling to increase state revenue is a false choice. With several massive corporate tax loopholes on the books, we have more than enough places to turn to in order to fully fund our public schools, fix our power grid, and rein in property taxes for homeowners.
