A panel of gaming-industry executives said Tuesday that the legalization of gambling in Texas, if a measure goes before voters in 2023, would open the floodgates to expansion in other states, especially Georgia.
The virtual discussion was held by African Americans in Gaming, which put on the program “Hot Topics in Gaming,” sponsored by Sci Games.
Texas lawmakers continue to push for a ballot measure to expand gambling as part of a constitutional amendment. There’s also a separate push to allow sports and mobile wagering, even in the face of strong opposition to any gaming expansion beyond the lottery and horse racing by Baptist organizations.
The issue came up as a question from moderator Alex Dixon, CEO of Q Casino. He talked about the African American mayors of Chicago, New York, Atlanta, Houston, Dallas, and Richmond and asked the panel which would be the first to welcome casino gaming.
The panel first focused on Texas. Justin Carter, senior vice president of regional operations at Penn National, said the focus should be on the Lone Star State. A bill there would allow casinos in Dallas, Houston, San Antonio, and Austin.
“Texas is the pinnacle of gaming,” Carter said. “Everyone knows how lucrative the Texas market is currently and can be with a casino in downtown or northwest Houston. It will be amazing. Texas has picked up a lot of steam. Many think that in 2023, a vote may come to Texans and if Texas gets gaming, it will be impactful.”
Carter said Texas continues to weather an exodus of people going to gamble in Louisiana, Oklahoma, and elsewhere. Penn operates three racetracks in Texas.
Attracting billions in casino investment, along with the jobs it creates, would have a strong economic impact, he said.
“That’s the one that excites me most, not just because I’m down south,” Carter said. “The fact that Texas has picked up steam is a shot across the bow to these other states, like Georgia, that have teased gaming for many years. I think Texas is next, and I think it’s going to happen.”
Anika Howard, the newly named president and CEO of Mashantucket Pequot Interactive as part of the Foxwood Resorts Casino in Connecticut, called Texas a big candidate and that if gaming comes to Georgia, “that’s one of those places that if it happens would be wonderful.” Casino operators have invested a lot in lobbying and forming alliances in Georgia, she said.
“I think it’s Texas before Georgia, but if Texas goes very quickly, a lot of these other states are going to fall in behind that,” Howard said.
Nathan Armogan, co-founder and CEO of Goodwrx and a former senior vice president and general manager with Caesars Entertainment, said New York City is one to watch. Casino operators are waiting for the state to authorize as many as three casinos in the New York City region. “People are getting a taste of (newly enacted) online sports betting,” he said, adding that Caesars had 100,000 new signups in less than 24 hours, which says a lot about the demand in the marketplace.
“I know the Seminoles and others are looking around for locations, but that market, Florida, and California are the big behemoths when it comes to gaming,” Armogan said. “New York has had a tough time with a lot of people moving out and the city has to think about reinventing. Gaming could play a role in that.”
The panel also discussed the lawsuit of former Miami Dolphins head coach Brian Flores, who has alleged discrimination against the NFL, and how that relates to the gaming industry. Flores, who was fired despite having winning records the past two seasons, was hired this week as a defensive coach by the Pittsburgh Steelers.
Dixon talked about how 70% of the NFL’s players are African American and that the league has a bad track record with hiring Black general managers and head coaches. None of the 32 owners is African American.
“In Southern Nevada, specifically, there are 230-plus casinos and no general managers of African American descent,” Dixon said. “Many of the same challenges we see in the NFL are in our industry.”
Howard also said a lot of parallels can be drawn between Flores’ class-action lawsuit and the gaming industry along with other industries. A strong set of workers provide the foundations, but the higher you go, all the way up to boards of directors, the fewer rewards and benefits people are reaping.
“It’s not just the NFL problem, but a structural problem for how everything is set up,” Howard said. “Do we create a seat at the table? Or do we create a new table and bring people to that?”
When he thinks about Flores and the NFL’s Rooney Rule that mandates teams interview minority candidates for head coach and general manager positions, Carter thinks about his role at Penn. The company has put in place a similar rule, called the Penn Way, in which there’s a requirement to interview a diverse set of executive candidates and not allow a selection to be a fait accompli, he said.
“The fatal flaw of the NFL is they put in a rule, but not a metric to check its effectiveness,” Carter said. “I call that a ‘checkbox rule’ – with nothing in place to assess whether it’s effective or achieving the goal you intended. We look at demographics and do we have more female VPs and African American managers and are we putting a dent in the company’s diversity. Until the NFL does that, they’re not even in the game.”
Armogan said without a metric or goal, a rule can have unintended consequences. He said it may take investors to say that unless your boards “are composed of x or y” and the executive positions have this composition, they’re not going to invest.
“We have to apply the right incentives,” Armogan said.
