Texas gambling expansion remains a hot topic, but the chances of seeing much progress this year or in future are slim due to ideological opposition by the Republican party establishment. Republican leaders in the state have been pushing for partisan loyalty and tighter adherence to the official party platform, which takes a zero-tolerance stance on gambling.
The party’s anti-gambling position could take even tighter hold Tuesday when House Republicans elect a new Speaker.
Factors that could lead to Republican-backed roadblock of gambling expansion
Texas has long held a reputation for being conservative stalwart. As such, gaming expansion has had a hard time gaining traction in the Lone Star State. Over the past two years, multiple attempts have been made to push gambling legislation through, only to see those efforts flounder in the Republican-led Senate. As a result, the state’s only gaming options are card rooms, a handful of tribal casinos and the Texas Lottery.
The state’s current Republican leadership is doing everything it can to make sure gambling stays that way, too. The party’s official platform document takes a steadfast stand against gambling, saying:
“We oppose any expansion of gambling, including legalized casino gambling. We oppose and call for a veto of any budget that relies on expansion of legalized casino gambling of any type or size, whether as a standalone business or partnered with any other business or resort, as a method of finance.”
The platform document also mentions the party’s position on any House proposals for legalized gambling, saying, “We call on all Republican legislators to… oppose any effort from the House leadership or members of the House Calendars Committee to pressure members to vote for expanded gambling.”
In essence, the Texas GOP is adamant its lawmakers kill any House-originated bills that would expand gambling in what would be one of the largest gaming markets in the country.
House speaker selection set to influence near future of gaming
Two of the state’s heaviest-hitters for the GOP have been vocal about who should fill the House speaker’s seat. For the past few years, Rep. Dustin Burrows has been the house Speaker. Burrows has bipartisan support, a fact that GOP leaders don’t like. Attorney General Ken Paxton and Lieutenant Governor Dan Patrick have said that Burrows’ bipartisan support is unacceptable, and that his replacement should be committed to the Texas GOP’s nonpartisan platform. Paxton and Patrick endorse the GOP caucus’s pick, David Cook.
In fact, Paxton and Texas GOP Chair Abraham George recently suggested they may try to unseat any Republican lawmakers who vote for Burrows instead of Cook.
If Paxton, Patrick and the rest of the GOP hardliners get their way, we may not see gambling bills make it out of the House for the next few years. And, judging by the zealous partisanship the Texas Republican party has shown, gambling expansion legislation is virtually a non-starter in the Senate.
With gambling expansion, Texas would become a top-3 state for online casinos and sports betting
Revenue is often an critical conversation when lawmakers discuss legalizing or expanding gaming. As the second-most populous state in the country, Texas would be a premier revenue generator for online casino and sportsbook operators, likely bringing in tens tens of millions in revenue to the state’s coffers.
For example, Texas would likely be the biggest sports betting market in the country based on November sports betting revenue in five of the top states, along with Census Bureau data:
November sports betting handle | November sports betting revenue | Population | Sports betting handle per person | Sports betting revenue per person | |
---|---|---|---|---|---|
Texas (projected) | $3,114,232,605 | $306,468,549 | 31,290,831 | $99.53 | $9.79 |
New York | $2,273,599,386 | $232,209,891 | 19,867,248 | $114.44 | $11.69 |
Illinois | $1,445,844,471 | $87,961,661 | 12,710,158 | $133.76 | $6.92 |
New Jersey | $1,224,883,112 | $118,962,664 | 9,500,851 | $128.92 | $12.52 |
Pennsylvania | $935,530,170 | $103,268,288 | 13,078,751 | $71.53 | $7.90 |
Ohio | $792,357,014 | $114,203,489 | 11,883,304 | $66.68 | $9.61 |
Total | $6,672,214,153 | $656,605,993 | 67,040,312 | $99.53 | $9.79 |
Additionally, averages from November indicate Texas could be the biggest online casino market in the country, too:
State | November online casino revenue | Population | Per-capita revenue |
---|---|---|---|
Texas (projected) | $600,622,123 | 31,290,831 | $19.19 |
Pennsylvania | $252,175,156 | 13,078,751 | $19.28 |
Michigan | $225,995,786 | 10,140,459 | $22.29 |
New Jersey | $214,021,732 | 9,500,851 | $22.53 |
Connecticut | $48,871,421 | 3,675,069 | $13.30 |
West Virginia | $24,053,369 | 1,769,979 | $13.59 |
Delaware | $6,204,986 | 1,051,917 | $5.90 |
Rhode Island | $2,792,184 | 1,112,308 | $2.51 |
Total | $774,114,634 | 40,329,334 | $19.19 |
With a conservative effective tax rate of 15% on sports betting and iGaming revenue, the state could earn more than $1 billion a year in tax revenue, plus whatever it generates in taxes from land-based non-tribal casinos.
It should be noted that online casino expansion is not a topic that has gained much steam in Texas.