Despite Republican gains in Austin, gambling group to push again for upscale casinos
Despite an increased Republican presence in Austin, the pro-gambling lobbying group Texas Gaming Association plans to again push forward with a bill to build upscale resort casinos in Texas.
With a potential $25 billion budget hole looming, Texas Gaming Association chairman Jack Pratt said the construction of casinos would be a new and alternate source of revenue that the state needs.
"Gaming revenue is not the solution to the budget problems, but it is a piece of it," he said.
He noted that if the casinos become fully operational, they would be expected have an economic impact of $1 billion or more annually and create thousands of jobs.
Specific details of the legislation are still in the works, but Pratt, a former hotel and casino developer, said it would be similar to what was proposed in the 2009 session.
One difference, he noted, would be fewer proposed upscale casinos than the 12 that were planned in the last bill.
"We can always increase later," said Pratt, who spoke to The Dallas Morning News editorial board Wednesday to explain his support for the legislation. "But we want large, upscale facilities that include convention centers, high-class restaurants and stores in addition to casinos."
Billions in revenue
According to the American Gaming Association, commercial casinos in the U.S. earned $30.74 billion in gross gaming revenue and contributed $5.59 billion in direct gaming taxes in 2009.
The last gambling bill would have asked Texas voters to authorize construction of casinos in counties with major metropolitan cities, including two in Dallas County and one in Tarrant County. Galveston , South Padre Island, Austin and San Antonio also would have been targeted for casinos. The proposed cities for the upcoming legislative session are still being discussed.
The bill also permitted the use of slot machines at existing racetracks. Gambling supporters say the suffering Lone Star Park in Grand Prairie would benefit from slot machines.
Grand Prairie Mayor Charles England, who is also chairman of the Grand Prairie Sports Facilities Development Corp. that owns the track, has said he will allow expanded gaming at Lone Star Park only if an upscale hotel is built as well.
It's not a far trip out of the Dallas-Fort Worth area to find casinos - they're legal in three out of four states that border Texas: Louisiana , Oklahoma and New Mexico. In a recent WFAA-Belo Texas poll of 1,000 registered voters, 54 percent said they supported legalizing casinos in Texas.
Pratt said he wants to be able to "let the voters decide" on the issue but understands that gaining the two-thirds of the legislature's support required to change the Texas Constitution will be an uphill battle.
"It will be a long educational process," he said.
Opponents of gambling expansion say the voters have already shown their hand when it comes to gambling.
'Litmus test'
Rob Kohler, a spokesman for the Baptist General Convention's Christian Life Commission, said the results of this month's elections shows that voters aren't in favor of making casinos a reality.
"That was the litmus test," said Kohler. "We have not found one member voted into office that said, 'If you elect me we will support the budget with casinos.' "
He added that expanding gambling is not a viable revenue-building mechanism.
"It's the same argument with the lottery folks who thought it would solve the education budget problem and it didn't," Kohler said. "This is the lottery on steroids and it won't help either."
While speaking in Dallas on Wednesday, Lt. Gov. David Dewhurst said it will be "more difficult" for pro-gambling legislation to pass in the 2011 session, even with the state budget gap. He also noted that the House must act first if any legislation is to be considered by the Senate.
Gov. Rick Perry, who was re-elected earlier this month, has opposed expanding gambling as well.
Pratt said getting the 100 votes needed to pass legislation will be "very tough." He said at least 25 lawmakers are "religiously inclined to oppose no matter what revenue is generated."
But he said he is not deterred by the unprecedented number of Republicans newly elected to the Texas House. He said he hopes to speak with each member about the proposed bill.
"I don't know how those 22 will affect what we're doing," Pratt said. "But we've never been faced with this revenue situation before where we really needed it."