iGaming & Sports Betting Interests Might Combine Forces in Texas

Emma Washington
Written by
Emma Washington on 11/05/2024

To date, Texas House and Senate lawmakers have been struggling to pass meaningful gambling expansion legislation. They have been trying to agree on how to bring retail casino gambling to the state for years, but to no avail. Any thoughts that the U.S. Supreme Court’s 2018 decision to lift the government’s ban on sports betting and iGaming would prompt movement on gambling expansion have been categorically wrong.

It’s worth noting that Texas has not been a friend of the gambling industry. That’s likely attributable to the conservative nature of the state’s leaders, driven by their religious upbringings. The problem is state residents are getting restless. It would seem that what lawmakers believe is not in line with what residents want. That has become clearer as lots of residents in East Texas have been making regular pilgrimages to neighboring Louisiana where they can visit retail casinos. More recently, they have also enjoyed having sports betting access with iGaming access soon to come.

Despite these struggles, there are indications that lawmakers may be warming up to the idea of some form of gambling expansion.

Why the Hesitation?

While a majority of U.S. states have already legalized retail and or online sports betting, Texas has been lagging behind. What makes that perplexing is the fact the state’s top professional sports franchises have thrown in their full support for legalizing sports betting.

There’s little doubt that Jerry Jones of the Dallas Cowboys (NFL) and Mark Cuban of the Dallas Mavericks (NBA) have a lot of influence on Texas lawmakers. That being said, they can’t help lawmakers get past two key gambling expansion issues.

First, nothing is going to get done unless retail casinos are approved for major cities like Houston and Dallas. That much has been made clear by big-city politicians. Second, the State Constitution would have to be changed. That would require the presentation of a constitutional amendment initiative for voters to approve. While that might seem to be a small obstacle, it’s a bit more complicated than that.

Before they create a constitutional amendment, lawmakers would have to agree on how far they want to go with gambling expansion. That’s necessary to avoid having to make other amendments in the future. Bottom line: Do they go all-in with retail casinos, sports betting, and iGaming (online casinos)?

Finally, Lt. Governor Dan Patrick’s lack of support for gambling expansion has been seen as a major obstacle in the past. However, there are recent signs that his position is softening.

Texas Sports Betting and Casino Gambling Proponents Joining Forces

With the border crisis putting a big strain on Texas’ financial resources, lawmakers are scrambling for solutions. In other states, tax revenue from sports betting and casino gambling has helped fill financial coffers. Why not in Texas?

At the recent Global Gaming Expo in Las Vegas, Sands Senior Vice President of Government Relations Andy Abboud told officials from PlayUSA that casino and sports betting proponents were looking to join forces in Texas. The consensus is one bill in support of all interests might tip the scales in favor of gambling expansion.

Keeping in mind that the Texas legislature only meets during odd-numbered years, last year was the last time gambling expansion legislation got any consideration. The results were mixed.

The House did manage to pass a constitutional amendment in support of retail and online sports betting by a vote of 101-42. It was a close call given that constitutional amendments require 100 votes to the affirmative. While the amendment squeaked by in the House, it got no traction in the Senate before the legislative session concluded.

iGaming Legislation Stalls

As far as casino and iGaming legislation, it was a miss. There was a constitutional amendment that would have authorized the development and licensing of up to eight resort casino. However, it only garnered 92 votes and never made it to the Senate floor.

The idea of these separate groups combining forces to get a single constitutional amendment passed started last year with Las Vegas Sands owner Miriam Adelson. This came shortly after her family acquired a minority interest stake in the Dallas Mavericks. Her late husband and former LVS CEO was a huge supporter of retail and online gambling.

Abboud is doing everything in his power to bring these interests together. In his opinion, the time for gambling expansion in Texas is long past due. In his PlayUSA interview, he said:

“We’re just trying to get people on board and comfortable with it that this is the right way to go. To make sure that nobody gets left behind, that’s the easiest way for it to happen.”

He might be right. According to the polls, 80% of all Texas voters want a chance to vote on gambling expansion legislation. Furthermore, 60% of all voters say they favor passing a full gambling expansion basket that should include retail casinos. Additionally, retail and online sports betting, and iGaming as well. It’s noteworthy that this support is consistent with no regard to Texas regional location, religious beliefs, or political affiliation.

Cutting Through the Administrative Red Tape

Texas voters want the constitutional amendment. Professional sports team ownership wants retail/online sports betting. Big city officials want retail casinos in their communities. Casino players want access to online casinos. With all of this support, one has to wonder, “What’s the holdup.”

Abboud is convinced that Lt. Governor Patrick’s approval is no longer a serious barrier. Patrick has given him indications that if the GOP-led Senate wants to bring casino and sports betting to the Texas masses, he won’t stand in the way.

To cut through the administrative red tape, House Rep. Jeff Leach believes the Senate should put forth legislative effort to a retail/online casino amendment on the table. It’s his feeling that if the Senate will support retail and iGaming efforts, the House is more likely to sign off on the complete package

For now, all focus is on the 2024 general election. That should set the table for further discussions on this matter when the House and Senate reconvene for the 2025 legislative session.

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Emma Washington

14 Articles

Highlights

Digging into the latest casino and iGaming trends as well as opining on current market and forecast for the gambling industry.

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