A bill was pre-filed in Texas this week that could pave the way for casinos and legal sports betting in the state.
SRJ 17, submitted by Senator Carol Alvarado, was one of hundreds of bills submitted on November 14, the first day lawmakers could make submissions for the 2023 session of the state legislature, which starts on January 10.
The bill proposes to amend the Texas constitution to allow up to four "destination resorts," for which metropolitan areas with populations of two million or more would be eligible.
JUST IN: Texas lawmaker proposes constitutional amendment to legalize casino gambling and sports betting. Measure would require 2/3 approval of both chambers of the legislature -- and the signature of the governor -- to make it onto the Nov. 2023 ballot. https://t.co/mC2HjhVBYx
— Daniel Wallach (@WALLACHLEGAL) November 15, 2022
SRJ 17 would also authorize "sports wagering" and require "the imposition of a tax," although it provides few other details on what would be allowed. For instance, it does not mention if mobile wagering via online sports betting sites would be allowed or if separate sportsbook licenses will be required.
Under the bill, some horse and dog tracks would be eligible for casino gaming licenses, while more Texas tribal casinos might be possible, providing they are accompanied by revenue-sharing agreements with the state.
Previous gambling bills never reached the floor
Texas is a socially conservative state with a relatively large religious population. As a result, legalizing gambling has historically found little traction.
There has been some progress over the last few years, however, thanks to the late Sheldon Adelson.
The founder of the Las Vegas Sands, Adelson wanted to build a casino in Texas back in 2020. As a billionaire and major Republican Party donor, Adelson had more sway than most in the Lone Star State. With his backing, HB 477 was filed in November 2020, just ahead of the 2021 legislative session.
Adelson initiated a $2-million PAC to enhance his lobbying efforts.
During the 2021 session, another bill was filed that would specifically legalize statewide mobile sports betting. This was followed by a different bill, that would specifically allow sports betting, provided operators partnered with a Texas-based professional sports team or racetrack.
It goes without saying, that bill was backed by Texan sports teams.
A public hearing was held in April 2021, featuring pro-gambling legislators and representatives from BetMGM, FanDuel, and DraftKings. But, try as they might, the 2021 session ended without any gambling bills making it out of committee.
Sports betting in 2023 still a longshot
Even with Alvarado pre-filing a new sports betting-related bill, there's still a long way for sports betting to become a reality.
First, the Texas legislature is biennial, meeting only in odd-numbered years. Second, fewer than 10% of bills make it through the Texas legislative gauntlet to become law.
Meanwhile, legalized sports betting and casino gambling have never been a priority for recently reelected Governor Greg Abbott. His agenda is generally aligned with his conservative base, so, bills regulating the border or elections are far more likely to make it out of committee this year than one that pushes for a constitutional amendment to allow for sports betting or gambling.
Even if the bill makes it out of committee, it will still be an uphill battle. A constitutional amendment requires a two-thirds legislative majority and would also require a statewide vote on Nov. 7, 2023.
The bill, however, does create revenue opportunity. Texas doesn’t have an income tax and, during his campaign, Governor Abbott proposed lowering the state’s property tax.
If successful, that would create a large fiscal hole to fill and a tax levied on casinos and sportsbooks could help fill the gap. Bill SJR 17 proposes a tax rate of 10% of gross gaming revenue from table games and 25% rate on slot machine revenues — with potential sports betting taxes to be determined.
