In Texas, gambling-related legislation is not moving forward, except for a bill that would legalize daily fantasy sports. Rice University political science professor Mark Jones said, “Most recent legislative sessions have seen an at least halfhearted attempt by the gambling industry to pass legislation that would allow for some form of casino gambling in Texas. This session has been different, in that the gambling industry has by and large appeared to have given up any hope of trying to pass legislation that would open up Texas to casino gambling.”
Jones said what’s unusual is “this lack of legislative effort is taking place within the context of a tight budget, when in the past legislators have been more open to discussing the legalization of gambling as a way to raise additional tax revenue in times of revenue scarcity.” He noted, “The only potential bright light for the gambling industry in general could be the passage of this bill, which is a defensive effort by daily fantasy sports companies.”
Last year Texas Attorney General Ken Paxton last year issued a nonbinding ruling stating that online fantasy sports is illegal betting. FanDuel still runs free contests. DraftKings allows paid contests; it sued the state and asked the courts to declare fantasy sports websites are allowable in Texas.
State Rep. Richard Raymond and state Senator Lois Kolkhorst co-sponsored a bill stating online fantasy sports is skill-based and therefore legal. Raymond’s House Bill 1457 was approved by a House committee and could move to the full House for consideration. Kolkhorst’s Senate Bill 1970 was referred to the Senate State Affairs Committee.
Rodger Weems, state chair of Stop Predatory Gambling Texas, recently told House member, “Passing HB 1457 would constitute an illegal expansion of gambling, in violation of the Texas constitution. The other side wants you to believe this bill is something different than it really is. Don’t be taken in by a high-stakes shell game.” He said the only legal gambling in the state is charity bingo, charity raffles, the Texas Lottery and parimutuel betting on horse and dog races.
Still, in this session, which runs through the end of May, legislators filed bills that would: Allow gaming at 12 casinos in Texas in counties that approve casino gaming, with voter approval; permit casino gaming in Texas to generate funding for residual windstorm insurance coverage in coastal areas, with voter approval; let taxing units approve tax incentives to develop property for gambling, and prevent any money in the state’s economic development or enterprise funds from being used to help fund a facility in Texas where gambling would occur; allow voters to decide whether the Kickapoo Traditional Tribe of Texas may operate gaming in Texas; and let voters determine if the legislature should set up a state gaming commission and authorize the regulation of gaming in the state, including letting Indian tribes conduct gaming on Indian land in Texas.
Other gambling legislation includes state Rep. John Kuempel’s HB 3926, which would allow electronic gambling machines, “purpose-driven parimutuel wagering,” directing some of the proceeds to charities to buy body armor for law enforcers and boost death benefits for spouses and families of law enforcers who die in the line of duty. Also, various proposals would let voters decide if their communities should legalize or prohibit eight-liners, impose fees or create criminal penalties. Currently, playing eight-liners for cash is illegal, and non-cash prizes are allowed only if they are worth less than $5. Businesses that offer the games often are raided and their machines are confiscated.
The Texas Lottery also has been a constant target. This year the state Senate proposed an $18 million reduction and the House has proposed a $6 million cut in the lottery commission’s budget over the next two years. Lottery officials said the Senate’s proposed cuts in advertising, marketing and promotions could result in a loss of about $108 million in revenue to the Foundation School Fund, and the House’s cuts could reduce revenue to the school fund by $20 million.
University of Texas at Arlington associate political science professor Allan Saxe said, “The legislature should de-criminalize or legalize all gaming because the state of Texas is in the gaming industry with the lottery. The state urges us to play the lottery but no casinos, fantasy sports, etc. The lottery is a complete game of chance and that standard is used to deprive citizens of other gaming opportunities. I believe that what is stopping the passage of other gaming is the lobbying from other states and casinos that simply do not want competition.”
In regard to the lottery, the House recently gave voice approval to a measure that would allow winners of at least $1 million in the state lottery to remain anonymous and to prohibit the public release of all personal information. The bill was designed to protect lottery winners from unwanted attention, predatory acts and media scrutiny. Key information still will be shared with authorities for tax purposes.
Opponents claimed the measure would reduce the lottery commission’s transparency.
