Gambling advocates pin hopes to budget shortfall
SOUTH PADRE ISLAND — As in sessions past, the start of the 2011 Legislature this month is sure to spark a renewed debate over gambling in the state of Texas. And as lawmakers prepare to tackle a looming budget shortfall, wary of raising taxes or making drastic cuts, gambling supporters plan to again make the case for legalized casinos in Texas, claiming the revenue could help solve the state’s budget woes.
Officials with the Texas Gaming Association, the group that led the push to legalize casino gambling in the 2009 Legislature, explained last month that they were already planning for the upcoming fight in Austin, claiming the state’s budget dilemma gives proponents the best opportunity in years to pass a gambling overhaul. And as in years past, according to the association, plans are on the table for at least one Gulf-island casino, making South Padre Island a lead contender for a possible so-called “destination resort” casino.
Supporters of expanded gaming insist lawmakers in Austin will have little choice but to consider new sources of revenue in light of a looming budget deficit that, according to some estimates, could hit roughly $20 billion. Still, local lawmakers, many of whom support legalizing casinos, say the deep Republican shift in the House this past November may have already killed any gambling bill long before the Legislature convenes for the first time this month.
Passing such a bill would be a long, arduous process, especially with the new sizable Republican majority in the House, remarked longtime state Rep. Rene Oliveira, D-Brownsville, saying he would support a casino bill.
Similar proposals in previous sessions have failed to gain traction, Oliveira said, because legalizing casinos would require amending the state constitution, meaning two-thirds of the House and Senate would have to vote in favor of a state-wide referendum. Republicans handily took the statehouse in November, winning 99 out of 150 House seats, and since the election, two Democrats have changed sides.
“Prior to the election, I would have agreed that gaming would have had a fair chance of getting that two-thirds vote,” Oliveira said. “I’m going into my 14th term, and I know how to count votes,” he said. “I am just not sure the votes are there any longer … I’m hoping that I’m wrong, but at this point, I just don’t see it.”
“I was counting on it to help address the budget crisis, but I’m not counting on it anymore.”
Even if approved, it would take time for casinos to be built and start generating tax revenue for the state, Oliveira said.
Sen. Eddie Lucio Jr., D-Brownsville, welcomed the idea of having a local Rio Grande Valley casino, saying a resort on or near the Island would be an economic boon to the region.
“It would really help stimulate our local economy. Can you imagine what that would do for our hotels, our restaurants, our retail stores?” Lucio said.
“I would hope that this would be the year we seriously look at this,” he said. “We find ourselves in a multi-billion-dollar shortfall, and we need to look at every way to address that.”
J.M. Lozano, the incoming House representative for District 43, which includes the Island, said, “Generally, I’m in support of Texans having casinos, and in my opinion, it’s long overdue.” Lozano said he hopes the Island will be a contender for a casino resort should a gambling measure pass, adding, “The Island right now is a seasonal economy, and something like this could make it a year-round economy.”
But in the past, many Island residents have been wary each time casino proposals have surfaced, said Island Mayor Robert Pinkerton. “I know that some people here would be reluctant to have (a casino) down here. I’ve seen it every time this comes up.”
Lozano said, “If the people (on the Island) don’t want a casino, if they’re concerned it will ruin the condition of the Island, that’s something I’ll take to Austin.”
“We wouldn’t force something on those people.”
Historically, Republican lawmakers have fought efforts to increase gambling in Texas, whether for slot machines at the racetracks or full-blown Vegas-style casino resorts.
Ultimately, if lawmakers in Austin can push through such a measure, it would be up to the Texas public to decide whether or not they want casinos.
Jack Pratt, chairman of the Texas Gaming Association, said last month that he was still confident that an expanded gaming bill could pass, despite large Republican gains in the House. “We feel we have a very compelling argument. Texas needs jobs and the state, especially now, needs the revenue this could bring,” he said.
Pratt explained that gambling proponents are asking for less this time around.
Instead of asking for 12 casinos, a proposal that quickly died last session, supporters plan to ask for about four “destination resort” casinos, major real estate developments that would include retail and other entertainment. Three would likely be in the Dallas, Harris and Bexar county areas, leaving the Island up for grabs as a planned coastal resort.
“We’re not asking for the Legislature to approve casino gaming in Texas,” Pratt said. “What we’re asking is for the Legislature to approve a framework so the voters can ultimately decide for themselves.”
If a bill was to make it through the House and Senate, recent polling shows that Texans would support gambling. According to a Texas Lyceum Poll released in October, when asked about how to raise revenue in light of the expected state budget shortfall, 54 percent of Texans preferred legalizing and taxing casinos.
Proponents often cite lofty tax revenue projections, claiming the state could rake in up to $4.5 billion a year from casino gambling and up to $1 billion a year by legalizing slot machines in already-existing race tracks.
Supporters also make the argument that Texans are already gambling, they’re just leaving the state to do so. The Texas Gaming Association claimed in 2009 that Texans spend more than $6 billion every year gambling in nearby states that allow casinos, such as Louisiana, New Mexico, Oklahoma and Mississippi.
Pratt said the association plans to release polling data along with jobs and revenue projections for their casino proposal sometime this month.
But opponents claim the projected benefits are wildly inflated. Rob Kohler, a consultant for the Christian Life Commission, the public policy arm of the Baptist General Convention of Texas, called the push to legalize casinos a funding gimmick.
Kohler contended that it’s misleading to portray legalized gambling as an immediate fix to the current budget mess. Even if approved, it could take years before the resorts were developed and sending any tax revenue to the state, Kohler said, lending no help to the current budget shortfall.
The Christian Life Commission plans to block any expanded gaming proposals that come before the Legislature this session, Kohler said.
Kohler also posited that, when ultimately given the choice, residents near proposed “destination resorts” would vehemently oppose allowing casinos into their communities.
And as for state lawmakers in Austin, Kohler said, “We have no reason to believe the support’s there, that it would pass this time around. No one was running on this issue. No one was saying, ‘Elect me and I’ll fight for casinos in Texas.’”