Texas Gears Up for Legalization of Casinos and Sports Betting in 2023

The plan to legalize casino and sports betting is back in play in Texas. Senator Carol Alvarado (D) pre-filed SRJ 17, a proposal that would leave the decision in voters’ hands, come the November 7, 2023, elections. It was among the hundreds of submissions made on Monday, November 14, by Texan lawmakers for proposed House and Senate bills. The bills were pre-filed in readiness for the 88th legislative session, which will run from January 10 to May 29.

Although more than half of the US states have already legalized and regulated casino and sports betting, Alvarado’s SJR 17 would have to weather all possible challenges. Currently, the biggest challenge is the religious standpoints of Texans and Lt. Governor Dan Patrick, who has been opposed to gambling expansion initiatives. In addition, the Lt. Governor has previously asserted that the potential revenue that could be generated will not make much of a difference to the state’s economy.

A Massive Legislative Hurdle Lies Ahead

Alvarado’s SRJ 17 proposal will first have to pass through the legislature before seeing the light of day on the ballot in November. This will be possible if at least two-thirds of the lawmakers vote to amend the constitution and push the bill forward before the end of the legislative session. The upside is that Texas has a history of successful constitutional amendments.

Even though most states have legalized casino and sports betting, the journey has been tough. Moreover, for states with a record of resisting gambling, the roads are much rougher for proponents. The case of Texas is even more challenging as top officials have publicly voiced their disdain for gambling, which is why even retail casino gambling is yet to be legalized.

Further, besides Lt. Gov. Patrick’s known anti-gambling stance, he is currently in charge of creating Senate standing committees and determining which ones get which bills. The situation is thus a tricky hurdle for pro-gambling legislation lobbyists as the Lieutenant Governor hasn’t been shy in challenging gambling expansion efforts in the Lone Star State.

The way the proposed bill is drafted, the main subject appears to be casino gambling, and sports wagering is only an afterthought. Depending on how future discussions unravel, supporters of the bill may consider separating the two and presenting them independently.

If passed as is, SRJ 17 would award four Class 1 gaming licenses to resort casinos in areas with over 2 million residents. Meanwhile, three Class 2 licenses and two Class 3 licenses would be granted to pari-mutuel establishments serving over and less than 2 million Texans, respectively.

Lobbyists Already on the Ground to Support Gambling Legislature

While getting the Texas lawmakers and residents to approve the casino and sports betting bill is an apparent uphill task, some parties have expressed optimism regarding the prospects of success in 2023. Before the pre-submission date, efforts to start campaigns that would increase the chances of legalizing casino and sports betting in 2023 had begun.

On November 23, Austin Bureau and Houston Chronicle reporter Jeremy Wallace wrote:

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“More than 300 lobbyists are now registered in Texas to work on gambling issues, according to state records, led by Las Vegas Sands, which added another just last week and now has 72 — the most lobbyists in Texas for any single group or business.”

One proponent of sports betting in Texas is former Gov. Rick Perry, who recently announced that he would join the Texas Sports Betting Alliance. However, he has made it clear that he is no lobbyist and has argued that sports betting is already taking place in the state without a regulated market. Therefore, it would be in the best interest of Texans to legalize and hence protect the punters from black market operators.

In his statement, Perry pointed out that about $8.7 billion worth of illegal bets is placed every year. And in case bettors are scammed by unscrupulous offshore bookies, there is no way to hold anyone accountable. The Alliance boasts membership from well-known operators as well as in-state professional teams. On a press release posted on the Alliance’s website, Perry revealed that:

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“The legalization of mobile sports betting in Texas would mean implementing smart and efficient oversight to preserve the integrity of sporting events, empower Texans to safely participate in mobile sports betting, and fight illegal gambling. Given that Texans are already participating in mobile sports betting, legalization would be a home run for all involved.”

For a long time, Texas Gov. Greg Abbott has not been on board as far as legalizing casino and sports betting is concerned. Thankfully, unlike his second in command, he has recently had a change of heart, stating that his administration was open to proposals on the same. This is on condition that the operators will professionally implement matters. To clarify his point, Gov. Abbott’s administration released a statement saying:

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“We don’t want slot machines at every corner store, we don’t want Texans to be losing money that they need for everyday expenses, and we don’t want any type of crime that could be associated with gaming. But, if there is a way to create a very professional entertainment option for Texans, Gov. Abbott would take a look at it.”

Gaming Expansion Wil Create Jobs and Generate Tax Income

SJR 17 stipulates that the revenue collected from gambling activities would be channeled into education and public safety initiatives. Although it’s tentative and subject to change once discussions are underway, the proposal is not unusual as several other states have used similar proposals to get gambling bills through the House and Senate.

Additionally, at the moment, the Governor is under intense pressure to come up with ways to create jobs and new sources of tax revenue. SJR 17 has, thus, been worded as the precise solution to these challenges, although some fierce opposition is expected from anti-gaming lobbyists like the Christian Life Commission. As proponents of expanded casino and sports wagering in Texas prepare to put their best foot forward, the coming months are about to get quite busy.