Texas Lawmakers File Gambling Bills

Texas lawmakers have filed bills to establish a gaming commission; allow gambling at resort areas, horse racetracks and cities with 675,000 or more population; open casinos in order to use the revenues for windstorm insurance; and let the Alabama-Coushatta Tribe and the Tiguas offer gaming. State Rep. Joe Deshotel (l.) wants six casinos on the Gulf Coast.

Texas legislators are considering several measures regarding gambling in the state.

House Joint Resolution 40, sponsored by state Rep. Carol Alvarado, would establish a gaming commission to oversee the development of casino gambling at resort areas, horse racetracks and cities with a population of more than 675,000 people, including Houston, Dallas, Fort Worth, El Paso, San Antonio and Austin. Supporters said the bill could generate more revenue for the state through the casinos and by revitalizing the horseracing industry. A two-thirds vote in both the House and Senate is required to move HJR40 forward. Following that vote, an amendment would be placed on the ballot this November.

In addition, state Rep. Joe Deshotel filed a bill that would allow three casinos to be located in Nueces, Galveston and Jefferson counties, as well as three casinos located at horse or dog racetracks in Harris and Bexar counties plus three more at tracks in other counties on or near the coast. Gaming tax revenue would go to the Texas Windstorm Insurance Association.

“Following the tremendous losses of Hurricanes Katrina and Rita in 2005, insurance companies quit offering policies in counties located on the hurricane-prone Texas Gulf coast. Instead the homeowner’s only option was to purchase insurance through the high-risk pool system offered by TWIA,” Deshotel said. “Since 2008′s Hurricane Ike hit the Gulf Coast with such severity and monetarily devastated the fund, TWIA is operating with a huge deficit. It was nearly $137 million short in 2013.”

His bill offers a solution that “is fairly simple,” he said. “Full Las Vegas-style casinos will be permitted within a first-tier coastal county or second-tier county or in a county where its county seat is within 100 miles from a first- or second-tier county.”

Deshotel acknowledged passing his gambling bill will be “an uphill battle,” but it might have more support due to the TWIA aspect. Passage requires approval of two-thirds of the legislature and voter approval in a statewide election.

Also, SJR 51 and HJR 129 would amend the state constitution and allow the Alabama-Coushatta Tribe in southeast Texas and the Tigua Tribe in El Paso to engage in gaming on their lands. The state’s third tribe, the Kickapoos, are not subject to the same state law restrictions and have opened a Class II operation on their reservation. State Senator Jose Rodríguez said, “We are proposing a constitutional amendment that will bring equal treatment, fairness and equity to our three Texas tribes. We already have gaming in Texas but for only one tribe, and that’s not right.”

Both the Alabama-Coushattas and the Tiguas previously operated casinos but those were shut down following litigation from the state. Since then the Tiguas have offered a so-called sweepstakes operation at its Speaking Rock Entertainment Center that the tribe claims is legal under state law. Not so, said U.S. District Judge Kathleen Cardone who ordered Tigua officials to cease all gaming operations or face a $100,000-per-day fine. The ruling noted the sweepstakes generated $30 million in 2012 and 2013. Tribal officials said the games help pay for tribe members’ college tuition, day care and health care.

A tribal attorney said the ruling does not say the tribe did anything illegal, only that they should have asked for permission before starting the sweepstakes.