Texas Legislature to reconsider legalizing casinos and sports betting

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Playing legalization advocates in Texas are going all in once more this legislative session, assured that they’ve constructed extra help since their efforts got here up far quick in 2021.

The push continues to be an uphill battle, nonetheless, as Lt. Gov. Dan Patrick, who oversees the Senate, continues to pour chilly water on the thought. However supporters have discovered promising indicators elsewhere, and so they have returned to the Capitol with a military of well-connected lobbyists after doling out thousands and thousands of {dollars} in marketing campaign contributions in the course of the 2022 election.

There are two primary camps pushing for expanded playing in Texas — and proper now, they seem like working on parallel tracks. The primary is a continuation of a lavishly funded and high-profile effort initiated by the late Sheldon Adelson and his gaming empire Las Vegas Sands to legalize casinos, particularly high-quality “vacation spot resorts” within the state’s largest cities. The opposite lane is the Texas Sports activities Betting Alliance, a coalition {of professional} sports activities groups within the state and betting platforms that’s solely centered on legalizing cellular sports activities betting.

Playing is basically unlawful in Texas with exceptions together with the lottery, horse and greyhound racing and bingo. Texas has three tribal casinos, that are allowed to function beneath federal regulation.

The Sports activities Betting Alliance already made a splash within the lead-up to this session by hiring former Gov. Rick Perry as a spokesperson.

“What’s modified [since 2021], I feel, is the persevering with schooling of most people that this isn’t an growth of playing,” Perry mentioned in an interview, suggesting that Texans already take part on this kind of playing in different states or illegally. “It’s happening, it’s gonna proceed to go on and the state of Texas wants to manage it and be sure that its residents’ info is protected.”

Sports activities betting is authorized in 36 states and Washington, D.C., in response to the American Gaming Affiliation.

Sands, in the meantime, has been touting a “long-term dedication to Texas.” It has not publicly detailed its technique for this session, however a spokesperson for its political motion committee within the state, Matt Hirsch, mentioned that it “will proceed to actively have interaction state and native leaders over the course of this session and stay dedicated to working with lawmakers to in the end permit voters to determine on this situation.”

Each proposals didn’t make it far throughout their debut legislative session two years in the past. Their payments acquired committee hearings within the Home however by no means bought voted out, and they didn’t obtain hearings within the Senate.

This time, the Sands staff is aiming to file its laws sooner and with broader help, each inside the gaming trade and the Legislature.

Additionally they see firmer allies in Gov. Greg Abbott and state Home Speaker Dade Phelan. Each leaders expressed openness to expanded playing in 2021, and so they have gone additional in current statements, suggesting settlement with Sands’ imaginative and prescient for casinos within the state. An Abbott spokesperson mentioned in an announcement final fall that “if there’s a method to create a really skilled leisure possibility for Texans, Governor Abbott would check out it.”

“What I don’t need to see is to stroll into each comfort retailer and see 15 slot machines,” Phelan mentioned throughout a media briefing earlier this month because the session bought underway. “I need to see destination-style casinos which can be top quality and that create jobs and that enhance the approach to life of these communities.”

Phelan’s remark stood out for its use of the phrase “destination-style” — the identical language utilized in Sands’ pitch.

Nonetheless, it stays to be seen if gaming advocates could make any headway with Patrick this session. He has been essentially the most proof against expanded playing out of the “Huge Three” leaders — which embrace him, Phelan and Abbott. In a December TV interview, he mentioned that he didn’t see any “motion” on the difficulty.

Different opponents of extra playing are holding agency. If something, they argue, there’s much less traction for expanded playing this session as a result of the Texas economic system is in a greater place than it was two years in the past, brimming with a $33 billion funds surplus. Again then, elevated playing was mentioned as a possible new income stream to take care of an anticipated deficit after the state had been hit by financial losses attributable to COVID-19 shutdowns.

“I’ve talked with numerous Home and Senate members, and playing appears to be much less engaging throughout a time of file prosperity and surpluses,” state Rep. Matt Shaheen, R-Plano, mentioned in an announcement. “There doesn’t appear to be an urge for food to assist giant companies enhance their income on the expense of numerous Texans.”

Increasing playing continues to be a well-liked thought with Texans. A ballot launched Thursday by the College of Houston discovered that 75% of grownup Texans help laws to let voters determine on legalizing casinos. The survey additionally recognized 72% help amongst Republicans and 69% help amongst “born-again Christians,” which pollsters famous have “lengthy [been] the spine of opposition to legalized playing.”

In November, state Sen. Carol Alvarado, D-Houston, refiled the on line casino invoice she carried final session, although a Home companion has not been filed but. State Rep. John Kuempel, R-Seguin, “will likely be submitting on line casino laws once more this session,” his chief of employees, Brittney Madden, wrote in an e mail.

The sports-betting payments haven’t been filed but, and it’s unclear to date who will carry the invoice. The Home creator from the 2021 session, state Rep. Dan Huberty, R-Houston, didn’t search reelection.

Rival campaigns?

Given the stiff headwinds to getting any growth in playing handed, sports activities betting and on line casino advocates could also be competing in opposition to one another, moderately than working in tandem.

The Sports activities Betting Alliance is formally impartial on legalizing casinos, however the Sands staff has welcomed collaboration, noting its proposal would moreover legalize sports activities betting.

Advocates for sports activities betting see their trigger as a standalone situation that’s extra palatable for lawmakers. Perry mentioned there’s a “clear delineation” between what the Sports activities Betting Alliance is pushing for in contrast with legalized casinos.

“The opposite points which can be on the market, they’ll have to face or fall on their very own,” Perry mentioned. “I don’t suppose these will likely be tied collectively in any time limit.”

It’s unclear if Patrick, the highest-ranking hurdle to expanded playing, sees an analogous distinction between the causes and may very well be extra amenable to sports activities betting. His prime political strategist, Allen Blakemore, just lately signed as much as foyer for the Sports activities Betting Alliance via the top of the 12 months. And Patrick is shut with Perry, once calling him “considered one of my greatest mates in life.”

Neither Patrick’s workplace nor Blakemore responded to requests for remark.

Within the December TV interview, Patrick mentioned nobody had talked about expanded playing to him and no Republicans had filed payments on it but. However advocates are making the case to Senate Republicans, and no less than considered one of them, Sen. Lois Kolkhorst of Brenham, is giving thought to the sports-betting push.

“It’s true that Senator Kolkhorst is finding out laws to manage ongoing app-based sports activities betting in Texas however she doesn’t touch upon pending laws,” Kolkhorst’s chief of employees, Chris Steinbach, mentioned in a textual content message. “She could have extra to say as soon as a invoice have been to be filed.”

The affect

In the meantime, the gaming trade is retaining a excessive profile on the Capitol. As of Thursday, Las Vegas Sands had 69 lobbyists registered with the Texas Ethics Fee, with the worth of the contracts totaling properly into the seven figures. The Sports activities Betting Alliance had 20 lobbyists signed up with the TEC.

The lobbyist secure continues to incorporate heavy hitters on the Capitol, like former prime advisers to governors and chiefs of employees to Home audio system.

Gaming pursuits have additionally ramped up marketing campaign donations for the reason that final session. Sands fashioned a political motion committee, Texas Sands PAC, that doled out no less than $2.2 million in contributions to statewide officers and dozens of lawmakers from each events in the course of the 2022 election cycle. The PAC has been virtually solely funded by Miriam Adelson, who grew to become the bulk shareholder in Las Vegas Sands after her husband died in 2021.

Individually, Miriam Adelson was one of many prime donors to Abbott’s 2022 reelection marketing campaign, writing him a $1 million test.

One of many recipients of the Sands PAC cash was state Rep. Craig Goldman, the brand new chair of the Home Republican Caucus. The Fort Price lawmaker just lately told a local publication that he has not taken a place on casinos but and that the marketing campaign money wouldn’t affect him.

Dallas Cowboys proprietor Jerry Jones, whose staff is a part of the Sports activities Betting Alliance, made a spate of six-figure donations late within the election, together with $500,000 to Abbott and $200,000 to Patrick. Jones has lengthy supported legalizing sports activities betting in Texas and he mentioned in a radio interview earlier this month that “it’s actually a factor that must be addressed right now.”

Gaming pursuits additionally performed a serious position in funding the inauguration of Abbott and Patrick on Jan. 17. This system listed no less than three gaming pursuits as prime company donors: Sands; IGT, the Las Vegas-based slot-machine maker; and Landry’s, the Houston-based hospitality firm whose CEO, Tilman Fertitta, chaired the inaugural committee. (Companies can not donate to campaigns beneath Texas regulation however can fund inaugurations.)

Along with Fertitta, Miriam Adelson had a front-row seat onstage on the inauguration, watching from a number of seats away as Abbott and Patrick have been sworn in for his or her third phrases. And three days later, she sat entrance row at a pro-Israel convention in Austin as Abbott delivered a speech, twice lauding the Adelsons for his or her advocacy on Israel.

All of the affect peddling shouldn’t be fazing opponents of gaming, like Texas Values, the social conservative group.

“The growth of playing is already useless within the Texas Senate; and it might be a mistake for the Texas Home to spend valuable time on a coverage matter that doesn’t have the votes to go,” the group’s coverage director, Jonathan Covey, mentioned in an announcement.

Rob Kohler, a lobbyist for the Texas Baptist Christian Life Fee, mentioned he “actually [doesn’t] see” any new momentum behind the trigger.

“I’ve been on this situation for 20 years, and it all the time begins with the identical type of try to direct folks’s consideration to it,” Kohler mentioned. “Because the session performs on and the difficulty will get vetted, folks notice it’s not in the very best curiosity of the state.”

Disclosure: College of Houston has been a monetary supporter of The Texas Tribune, a nonprofit, nonpartisan information group that’s funded partly by donations from members, foundations and company sponsors. Monetary supporters play no position within the Tribune’s journalism. Discover a full list of them here.