All horse and dog racing and wagering on those races in Texas could come to an end by August 31 if the Texas Racing Commission does not receive funding from the Legislative Budget Board to continue operations. Last summer the commission approved historical racing, enraging Senate Republicans who claimed commissioners overstepped their authority and expanded gambling without legislative or voter approval. The Senate Finance Committee threatened in February to de-fund the commission, which has an annual budget of .7 million that comes from licensing and fees paid by the racetracks, and is approved through the legislative board. It receives no taxpayer dollars.
Commission Director Chuck Trout on August 7 sent a letter to an attorney for one racetrack noting he will not approve simulcast gambling after August 31 because the budget board has not signed off on an appeal for funding of the commission. “Absent the necessary approvals from the LBB, the agency will no longer be able to pay its employees or its rent and will close by the end of the day on August 31, 2015. If the agency closes, all racing will also stop,” Trout wrote.
The commission will meet and vote on August 25 to reverse its earlier decision allowing historical racing at Texas dog and horse racetracks. Commission spokesman Robert Elrod said the possibility of the agency closing at the end of the month is a “worst-case” scenario. He said commissioners are hopeful that ending historical racing will be enough to satisfy legislators and have its funding approved.
Supporters of historical racing said the technology would bring increased revenue to struggling Texas racetracks. But opponents compared historical racing to slot machines and said the racing commission was permitting Las Vegas-style gambling in Texas.