Texas bipartisan set of bills filed to legalize sports betting, up to 4 casinos

Two Texas lawmakers have filed bipartisan legislation that seeks to legalize casino gambling and sports betting in the state.

The bills by state Rep. John Kuempel and Sen. Carol Alvarado would allow four casino resorts to be built in Austin, the Dallas-Fort Worth area, Houston and San Antonio and would also legalize sports wagering, The Dallas Morning News reports. The state’s three federally-recognized Indian tribes would also be able to expand full-fledged gambling, including slot machines, on their land, a right the state has long denied them.

The bills require a two-thirds vote of lawmakers because they seek to overturn the ban on most gaming enshrined in the Texas Constitution. If either bill passes the Legislature, Texas voters will then have the final say on whether to approve the gambling expansion.

The legislation, Joint Resolution 133 in the House and Joint Resolution 49 in the Senate, states that slot machines would be taxed at a rate of 25% and table games at 10%. This revenue would then go into state coffers.

Gaming interests that want to build a casino in a metropolitan area with a population of fewer than 5 million would be required to invest at least $1 billion in the venture. Casinos built in more populous areas would require a $2 billion investment. The number of casinos would be capped at four, not counting those built by tribes on Indian land. Only one tribe in Texas, the Kickapoo Nation, currently operates a casino there, but that location still lacks traditional slot machines and many other Vegas-style table games. Limited gambling would also be allowed at certain racetracks.

“Now is the time to let voters decide on legalizing casino gaming across Texas,” Alvarado said in a statement. “Texas loses billions of dollars a year to our neighboring states that allow gaming and this measure would bring that revenue back to Texas, create tens of thousands of jobs and cut down on illegal gambling.”

Las Vegas Sands is behind the push to overturn the state’s ban on betting. Rob Goldstein, CEO of the Sands, told The Dallas Morning News that casinos would bring economic growth and tourism to Texas.

The state’s GOP-dominated Legislature has long opposed expanding gaming, most of which is banned other than bingo, the Texas Lottery and some horse and greyhound track racing. But polls, including one released this week by The News and the University of Texas at Tyler, show a majority of respondents said they would legalize casino gambling if given the chance.

Gov. Greg Abbott and House Speaker Dade Phelan, both Republicans, haven’t openly opposed the push to bring casinos to Texas this year. But Lt. Gov. Dan Patrick, who leads the Texas Senate and has significant sway over legislative priorities there, cast doubt on the efforts last month. “I’m not a big supporter of it,” Patrick said on the Chad Hasty radio show, saying infighting among casino, racetrack and Indian gaming interests has scuttled progress in the past.

During a briefing on the legislation last month, a Sands representative said Dallas would be the top destination for casino gambling in the state.

A second set of bills laying out the regulatory rules for the casinos has not yet been filed. While the Sands legislation includes the legalization of sports wagering, an alliance of pro teams and betting platforms also seeking to overturn the ban has not openly supported casinos. The sports betting legislation, which also would require a constitutional amendment, would allow Texans age 21 or older to bet on professional and college sports. Bettors would receive a maximum of 90% of their winnings, with 10% going to fund special education in Texas.

A spokeswoman with the Sports Betting Alliance, which is backed by all the top Dallas-area teams including the Cowboys, Mavericks, Stars and Texas Rangers, said they are “focused solely on mobile sports betting legislation.”