Do you want to argue? Texas legislature to consider legalizing casinos and sports betting

Supporters of gambling legalization in Texas are once again going for broke in this legislative session, confident they have garnered more support since their 2021 efforts failed.

It’s still an uphill battle, however, as Lieutenant Gov. Dan Patrick, who oversees the Senate, continues to cool off the idea. But supporters have found promising signs elsewhere, and they have returned to the Capitol with an army of well-connected lobbyists after handing out millions of dollars in campaign contributions during the 2022 election.

There are two main camps in favor of expanding gambling in Texas, and right now they seem to be running on parallel paths. The first is a continuation of the lavishly funded and high-profile efforts spearheaded by the late Sheldon Adelson and his gaming empire Las Vegas Sands to legalize casinos, especially high-end “resorts” in the state’s largest cities. The other lane is the Texas Sports Betting Alliance, a coalition of the state’s professional sports teams and betting platforms dedicated exclusively to legalizing mobile sports betting.

Gambling in Texas is largely illegal, with the exception of the lottery, horse and greyhound racing, and bingo. There are three tribal casinos in Texas that are allowed to operate under federal law.

The Sports Betting Alliance has already made a splash ahead of this session by hiring former Gov. Rick Perry as a spokesperson.

“What changed [since 2021]I think it’s ongoing education of the general public that this is not an expansion of gambling,” Perry said in an interview, suggesting that Texans are already participating in this kind of gambling in other states or illegally. “It’s going on, it’s going to continue, and the state of Texas needs to regulate this and protect the information of its citizens.”

According to the American Gaming Association, sports betting is legal in 36 states and Washington, DC.

Meanwhile, Sands touts a “long-term commitment to Texas.” He did not publicly detail his strategy for this session, but his state political action committee spokesman Matt Hirsch said he “will continue to actively engage state and local leaders throughout this session and remains committed to the job.” with legislators to ultimately allow voters to decide on this issue.”

Both proposals didn’t get very far in their legislative debut two years ago. Their bills were considered by a committee in the House of Representatives but were never defeated and they did not receive a hearing in the Senate.

This time, the Sands team is aiming to apply for legislation faster and gain broader support from both the gaming industry and the legislature.

They also see Governor Greg Abbott and Speaker of the State House of Representatives Dade Phelan as more reliable allies. Both leaders have expressed a willingness to expand gambling in 2021, and in recent statements they have gone even further, suggesting agreement with Sands’ vision for casinos in the state. An Abbott spokesman said in a statement last fall that “if there is a way to create a very professional entertainment option for Texans, Governor Abbott will consider it.”

“What I don’t want to see is walk into every convenience store and see 15 slot machines,” Phelan said during a media briefing earlier this month when the session had already begun. “I want to see high-quality, destination-style casinos that create jobs and improve the lifestyle of these communities.”

Phelan’s comment stood out because it used the phrase “destination style”—the same language used in Sands’ presentation.

However, it remains to be seen if the game’s quarterbacks can make any headway with Patrick this session. Of the leaders of the Big Three, which includes himself, Phelan and Abbott, he has proven to be the most resilient to the expansion of gambling. In a December TV interview, he said he did not see any “movement” on the issue.

Other opponents of more gambling hold firm. If anything, they argue, there is less incentive to expand gambling this session because the Texas economy is in a better position than it was two years ago, with a $33 billion budget surplus. Back then, the rise in gambling was discussed as a potential new revenue stream to cover the expected shortfall after the state suffered economic losses due to shutdowns due to COVID-19.

“I’ve spoken to countless members of the House and Senate and gambling seems less attractive in times of record prosperity and surpluses,” Rep. Matt Shaheen, R-Plano, said in a statement. “There seems to be no desire to help large corporations increase their profits at the expense of countless Texans.”

The expansion of gambling is still a popular idea among Texans. A poll released Thursday by the University of Houston found that 75% of Texans adults support legislation that would allow voters to decide whether casinos should be legal. The poll also found 72% support among Republicans and 69% among “born-born Christians,” who, according to pollsters, “have long been [been] the backbone of the opposition to the legalization of gambling.”

In November, State Senator Carol Alvarado, D-Houston, resubmitted a casino bill she had submitted in the last session, although a House companion had not yet been filed. State Rep. John Kuempel, R-Seguin, “will again be filing casino legislation in this session,” his chief of staff Britney Madden wrote in an email.

The sports betting bills have yet to be filed and it is not yet clear who will bear the bill. House of Representatives writer for the 2021 session, State Rep. Dan Huberty, R-Houston, did not seek reelection.

Competing campaigns?

Given the tough barriers to acceptance of any expansion of gambling, sports betting and casino proponents can compete with each other rather than work in tandem.

The Sports Betting Alliance is officially neutral on the legalization of casinos, but the Sands team welcomed the collaboration, noting that their proposal would further legalize sports betting.

Sports betting advocates see their case as a separate issue that is more acceptable to legislators. Perry said there is a “clear demarcation” between what the Sports Betting Alliance is aiming for and legalized casinos.

“Other problems that exist should be resolved or disappear on their own,” Perry said. “I don’t think they will be related to each other at any point in time.”

It’s unclear if Patrick sees the biggest hurdle to gambling expansion as a similar difference between causes and whether he could be more malleable to sports betting. Its chief political strategist, Allen Blakemore, recently joined the Sports Betting Alliance in lobbying for the rest of the year. And Patrick is close to Perry, once calling him “one of my best friends ever.”

Neither Patrick’s office nor Blakemore responded to requests for comment.

In a December TV interview, Patrick said no one had mentioned the expansion of gambling to him, and no Republican had filed a bill against him yet. But defenders are turning to Republicans in the Senate, and at least one of them, Senator Lois Colkhorst of Brenham, has considered betting on sports.

“It’s true that Senator Colkhorst is looking into legislation governing current app sports betting in Texas, but she’s not commenting on pending legislation,” Colkhorst’s chief of staff, Chris Steinbach, said in a text message. “She’ll have something to say as soon as the bill is filed.”

Influence

Meanwhile, the gaming industry holds a high status in the Capitol. As of Thursday, Las Vegas Sands had 69 Texas Ethics Commission-registered lobbyists with total contract values ​​in the seven figures. The Sports Betting Alliance had 20 lobbyists signed to TEC.

The lobbying stable continues to include strong attackers in the Capitol, such as former chief advisers to governors and chiefs of staff to speakers of the House of Representatives.

Gaming interests have also increased campaign donations since the last session. Sands formed the Texas Sands PAC political action committee, which provided at least $2.2 million in donations to state officials and dozens of bipartisan lawmakers during the 2022 election cycle. PAC is funded almost entirely by Miriam Adelson, who became the majority shareholder of Las Vegas Sands after her husband’s death in 2021.

In addition, Miriam Adelson was one of the biggest contributors to Abbott’s 2022 re-election campaign, writing him a check for $1 million.

One of the recipients of the Sands PAC money was State Rep. Craig Goldman, the new chairman of the Republican caucus in the House of Representatives. An MP from Fort Worth recently told a local publication that he has not yet taken a stand on the casino and that campaign money will not affect him.

Dallas Cowboys owner Jerry Jones, whose team is part of the Sports Betting Alliance, made a series of six-figure donations late in the election, including $500,000 to Abbott and $200,000 to Patrick. Jones has long supported the legalization of sports betting in Texas, and earlier this month he said in a radio interview that “this is really an issue that needs to be addressed now.”

Gambling interests were also instrumental in funding Abbott and Patrick’s January 17 inauguration. The program has listed at least three gaming interests as top corporate donors: Sands; IGT, a Las Vegas-based slot machine manufacturer; and Landry’s, a Houston-based hotel company whose CEO Tilman Fertitta chaired the first committee. (Corporations cannot make campaign donations under Texas law, but they can fund inaugurations.)

In addition to Fertitta, Miriam Adelson took a front-row seat on stage during the inauguration, watching from several seats as Abbott and Patrick were sworn in for a third term. And three days later, she was sitting in the front row at a pro-Israel conference in Austin when Abbott gave a speech twice praising the Adelsons for their defense of Israel.

All influence trading doesn’t faze game opponents like Texas Values, a social conservative group.

“The gambling expansion is already dead in the Texas Senate; and it would be a mistake on the part of the Texas House to waste precious time on a political issue that does not require votes,” Jonathan Covey, director of the policy group, said in a statement.

Rob Kohler, lobbyist for the Texas Baptist-Christian Commission on Life, said he “really [doesn’t] see” any new impulse behind the cause.

“I’ve been on this issue for 20 years now and it always starts with the same attempt to get people’s attention on it,” Kohler said. “As the session goes on and the issue is checked, people realize that this is not in the interests of the state.”

Disclosure: The University of Houston provides financial support to The Texas Tribune, a non-profit, non-partisan news organization funded in part by donations from members, foundations, and corporate sponsors. Financial sponsors play no role in Tribune journalism. Find the complete list them here.

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