The Texas constitution prohibits casino gambling. As a result, Texans spend an estimated $5 billion a year in neighboring states where commercial and tribal casinos and sports betting are allowed.
Meanwhile, legalized gambling is permitted in Texas in the form of the state lottery and 1,300 charitable bingo operations. In addition, electronic bingo is offered at the Kickapoo Traditional Tribe’s Lucky Eagle Casino in Eagle Pass, the Alabama-Coushatta Tribe’s Naskila Gaming in Livingston and the Tigua Indians of the Ysleta del Sur Pueblo’s Speaking Rock Entertainment Center in El Paso.
To make casinos legal, a two-thirds vote in both chambers of the Texas Legislature would be required to pass a constitutional amendment, then a majority of Texas voters would have to vote for it.
Supporters and opponents are mobilizing around casino bills for the 88th Texas legislature in 2024. Pro-casino interests have donated more than $1 million to Republican and Democratic candidates, including Governor Greg Abbott, Lieutenant Governor Dan Patrick and House Speaker Dade Phelan. All three have made statements ranging from indifference to opposition. Earlier this year, Beto O’Rourke, the Democratic nominee for governor, said he was in favor of legalizing casinos and sports betting
at a campaign event earlier this year.
Observers noted lawmakers are not concerned with finding new revenue sources given the $30 billion balance in the state’s treasury, as recently reported by Comptroller Glenn Hegar. Instead, they may be more interested in cutting expenses.
Another challenge is making sure to appeal to Republican primary voters. At its convention in June, the Republican Party of Texas adopted a platform plank that explicitly condemns repealing the state’s casino ban. It states: “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 gambling as a method of finance.”
Opponents of legalized gambling also claim the social costs of casinos or sports betting would outweigh the limited economic advantages.
In neighboring Oklahoma there are two commercial casinos and 138 tribal casinos, according to the American Gaming Association (AGA). Casinos in Durant and other locations near the Red River attract players from the Dallas-Fort Worth metro area. The AGA reported the two commercials generated $55.9 million for the state in 2021, whereas the tribal casinos’ share or revenue was $1.64 billion.
New Mexico offers 21 tribal casinos and five commercial operations, primarily in the northern part of the state. However, casinos, like the Sunland Park Racetrack & Casino, attract players from the El Paso area. Excluding the state lottery, gambling taxes provide annual revenue of $125 million, according to state data.
Louisiana offers 19 commercial casinos and five tribal casinos, all easily accessible to East Texans and Houston area residents. The AGA reported the commercial casinos generated $1.38 billion in annual tax revenue and the tribal tax revenue share was $120.5 million.
Finally, Arkansas reported $83.2 million in tax revenue from casino gambling and sports wagering from July 2021 through June 2022. The state has three commercial casinos in Hot Springs, West Memphis and Pine Bluff, a 2-hour to 3-hour drive for players from Texarkana and other parts of northeast Texas.
