As Texas’ 84th legislative session moves toward a June 1 finish, several gambling bills remain in consideration. However, it’s unlikely any measures will be successful, given recent statements by state lawmakers from Laredo, Houston and Eagle Pass, as well as comments from anti-gaming lobbyists who said a “clear majority” of legislators are opposed to any expansion of gaming “even when times are hard.”
In the House, HJR 22, which is pending in committee following a hearing, would allow the Kickapoo Traditional Tribe of Texas tribe to have a compact with the state to conduct Class III gaming. A companion bill, SJR 34, is pending in committee in the Senate.The tribe operates a Class II gaming facility, the Lucky Eagle Casino Hotel, on its reservation.
Also in the House, state Rep. Joe Deshotel introduced HB 3839, proposing nine non-tribal Las Vegas-style destination casinos to be located in Texas Gulf Coast Counties, including Jefferson County where Beaumount, Deshotel’s hometown, is located. Casino proceeds would be used to help property owners pay for residual windstorm insurance coverage. The bill is pending in committee.
In addition, HB 2329 would allow casino gaming in counties that have approved it. HJR 105 proposes a constitutional amendment to allow casino gambling in counties where residents approve it. Both bills have been assigned to committee but have not had a hearing.
HJR 40 and SJR31 both propose a constitutional amendment to create the Texas Gaming Commission to regulate casino games and slot machines in the state. The bills were assigned to committee but have not yet had a hearing.
Also in the House, a hearing was held for HJR 92, pending in committee that would allow communities to hold local elections to legalize or prohibit so-called “8-liner” slot-like games. Game rooms offering the machines increasingly are popping up in Austin. They’re legal providing cash payouts don’t exceed $5—but that’s not the case at many operations.
“There are all kinds of associated crimes with these types of businesses–armed robberies, assaults, other types of theft crimes. A lot of those that never get reported to police. These bleed over into residential areas,” said Sergeant Bob Miljenovich, director of the Austin Police Department’s Vice Unit Miljenovich said. But despite the concerns, Miljenovich said his department does not have the resources to crack down on the illegal gambling rooms. He added his detectives know the locations of many of the rooms but it’s hard keeping track because they constantly move and change owners.
Unlike Houston and Fort Worth, where stringent regulations require game room operators to register and pay significant fees, Austin has no ordinance requiring game rooms to be registered or providing penalties for operating an illegal facility. All that’s required is a sign and unblocked windows. When an illegal operation is shut down, the owners typically are charged with keeping a gambling place, a Class C misdemeanor under state law that carries a maximum penalty of a $4,000 fine and one year in jail.
Numerous illegal game rooms are located in the district of Austin city council member Greg Casar, who said, “I have heard these game rooms have been operating in my district. You hear about it on the street. The Committee on Public Safety, where I’m vice chair, is going to be examining an entire strategy for reducing violent crime and I think that giving APD tools to handle game rooms–which are attractors of violent crime–is an important thing we need to be working on.”
Bills to help the state racing industry also are pending. HJR 3667 and SB 1027 propose that certain taxes be refunded to horse racetracks or greyhound associations for enhanced purses to attract more competitors. John Elliott, chief executive officer at the Chickasaw Nation’s Global Gaming Solutions, owners of Lone Star Park, said, “The industry in Texas needs help. The tide is going out, the population has declined and the breeding program is declining. Horsemen are being forced to relocate for their livelihoods. Texas is not competitive with other states.”
Andrea Young, president of Sam Houston Race Park, added, “It would be great if we could use this money to grow purses. Frankly, it still won’t put us on equal ground with our neighbors, but anything helps. This legislature doesn’t seem very interested in helping the working families the horse industry is made up of though.” Neither bill has had a committee hearing.
Others in the racing industry were hoping a measure to allow historical racing machines would move faster. The bill has not yet had a hearing. Last year, the Texas Racing Commission voted 7-1 to allow historical racing one day after a Tarrant County judge declined to issue a restraining order to prevent commissioners from voting on the issue. State Rep. Matt Krause filed a lawsuit contending commissioners lacked the authority to allow the machines. That suit was dismissed, but a coalition of charitable bingo groups filed a second lawsuit in Travis County, claiming the machines could hurt their fundraising. A judge in Austin agreed, noting the legislature, not the commission, should make decisions regarding the machines.
Racing Commission Chairman Robert Schmidt said his agency would not appeal the ruling because it lacks the money for a legal challenge. However, a group of racetracks and horsemen appealed and the issue remains in the courts.
The commission’s actions upset certain conservative lawmakers. Although the House budget includes funding for the racing commission, a measure filed by state Senator Jane Nelson would remove $15.4 million earmarked for the commission from the state budget. And Senate Bill 364, filed by state Senator Craig Estes, would abolish the racing commission and transfer its duties to the Texas Commission of Licensing and Regulation. That bill has been assigned to committee but has not yet had a hearing.
