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Democrat Vicki Goodwin won Texas’ lieutenant governor race, defeating Republican incumbent Dan Patrick and becoming the first woman elected to the office. Democrat Gina Hinojosa also defeated Republican Governor Gregg Abbott. Jordan Bender, an analyst with Citizens, said the results could affect gaming policy in Texas, according to CDC Gaming Reports.
What the Texas results mean for gaming legislation
Bender said the outcome changes his firm’s view of Texas. "If Patrick had won, we would have viewed legislation of any gaming vertical as unlikely over the next four years, which was our expected outcome heading into the election," he said.
Goodwin has supported a public vote on casinos and sports betting. Bender said: "State politics will play out over the coming years, but on the surface, Goodwin has supported the broader expansion of commercial casinos and online sports betting through voter referendums."
Hinojosa has not commented on a potential vote on gaming, and she voted against a 2032 sports betting amendment, according to the report.
Legalizing gaming in Texas would require two-thirds approval in both legislative chambers and passage of a ballot initiative by voters.
Bender said influential Texas figures are involved directly or indirectly in legislative efforts, naming Tilman Fertitta, Miriam Adelson and Patrick Dumont. Fertitta owns Fertitta Entertainment, which is in the middle of a $17.6 billion acquisition of Caesars Entertainment.
Other states and federal prediction markets
In Nebraska, voters did not pass Measures 440 and 441, which would have legalized online sports betting. Retail sports betting is already legal there. Voters also rejected a measure authorizing a casino license in Allen, DeKalb and Steuben counties for a $500 million casino development.
In Ohio, Democrat Amy Acton won the governor’s race. Bender said her victory may ease the road to legalizing iGaming as a source of state revenue, and Citizens estimates Ohio iGaming could generate $2.9 billion in gaming revenue at maturity. He added, "iGaming legalization would represent a major milestone for the industry, although we see an uphill battle for the Democratic governor, with the Ohio House and Senate holding Republican supermajorities."
In Georgia, newly elected Democratic Governor Keisha Lance Bottoms said last month that she supports adding casinos to help fund education. Any effort to legalize casinos there would have to go through a ballot referendum. Bottoms has not taken a position on online sports betting.
In Virginia, two Churchill Downs-backed referendums for historical horse racing locations in Pulaski and Amherst County were too close to call as of Wednesday morning. Amherst County was too close to call, while Pulaski was trailing in the votes needed for approval.
Nationally, Bender said Democrats taking control of both the House and Senate could make prediction markets a greater political topic, and that Democrats could advance legislation to ban sports- and political-event contracts. PlayTexas reported in October on Sen. Ted Cruz’s plans for a state authorization bill for prediction markets.
Bender said such a bill would need the president’s signature, which he called unlikely. "We also believe Congress lacks the ability to override a presidential veto with a two-thirds majority," he said. He expects the U.S. Supreme Court to decide the prediction markets issue, with a potential decision sometime between that summer and 2028.
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Source: As reported by CDC Gaming Reports.
