Expectations for gaming resolutions filed in Texas post-midterm elections have come to pass, as two lawmakers have filed joint resolutions that would give voters the opportunity to vote on a constitutional amendment to legalize sports betting and casino gaming.
Republican Representative Charlie Geren filed House Joint Resolution 52 and Democrat Senator Carol Alvarado filed Senate Joint Resolution 11.
Both resolutions would permit the legislature to authorize and regulate casino gaming and sports betting through general law. The resolutions would define what constitutes casino gaming and wagering on sports, require operator licenses and application fees, and determine where gaming could take place.
Casino gaming would be restricted to a licensed operator within the state. Each resolution limits the number of casinos to 10, “with initial license terms of at least 40 years.”
Geren and Alvarado both support a 15% tax on casino and sports betting revenue. The proposals also prohibit any additional taxes or fees targeting gaming revenue.
Both resolutions would establish a process for the state to negotiate “in good faith and execute in a timely manner” a tribal-state gaming compact with any of the three federally recognized tribes to conduct Class III gaming as prescribed by the Indian Gaming Regulatory Act (IGRA). The three federally recognized tribes are the Alabama-Coushatta Tribes of Texas, Kickapoo Traditional Tribe of Texas, and the Ysleta del Sur Pueblo.
Alvarado’s SJR 11 would establish a commission as a state agency funded by lottery proceeds and casino and sports betting taxes and fees. The commission would regulate lotteries and authorized gaming, with investigative, enforcement, and audit authority.
Both resolutions specify November 2, 2027, for a proposed statewide vote if they’re approved by both chambers of the Texas legislature.
The ballot initiative would read:
“The constitutional amendment to permit the legislature, by general law, to authorize and strictly regulate casino gaming and sports wagering at a limited number of locations in this state, require licenses and license application fees for casino gaming and sports wagering operators, establish a gaming revenue tax on casino gaming and sports wagering operators of not more than 15 percent, and establish a state agency, funded by state lottery proceeds and the fees and taxes paid by casino gaming and sports wagering operators, to regulate all lotteries, casino gaming, and sports wagering.”
“If they say ‘no,’ then we’re done with it forever,” Geren told the Fort Worth Star-Telegram.
Each resolution was filed on Monday and has not received their committee assignments. The Texas legislature is set to return to Austin on January 12 and is scheduled to adjourn its session on May 31.
The session will begin with Democrats with the majority in the House and Republicans in control of the Senate. Any proposed constitutional amendment requires approval by a two-thirds majority in both chambers of the state legislature, with at least 100 votes in the House and 21 in the Senate, before appearing on the ballot.
Optimism for Lone Star state gaming
Midterm-election results in Texas have changed the legislative landscape for those lawmakers who support legalizing casinos and sports betting in the state.
Democrat Vicki Goodwin’s defeat of incumbent Republican Lieutenant Governor Dan Patrick could pave the way for either resolution to end up on next year’s ballot. Patrick has staunchly opposed gaming expansion in Texas. Goodwin supports letting voters decide whether to legalize gambling in Texas.
“Right now, people leave and take their dollars with them to go to nearby states where they can gamble, which means Texas is losing out on potential revenue and economic activity,” Goodwin said during her campaign.
Goodwin said gaming represents a significant economic opportunity that could benefit Texas through job creation, tourism, and tax revenue if properly regulated.
“I think we should let the people of Texas have a say in this decision through the democratic process, as they are the ones who should ultimately determine what’s best for our state’s future,” Goodwin said.
Last week, Democrat Gina Hinojosa defeated incumbent Republican Governor Gregg Abbott. She will be sworn into office on the south steps of the Texas Capitol on January 19.
Hinojosa’s past voting record as a state representative includes a “no” vote on a 2023 sports betting constitutional amendment. During her campaign, Hinojosa did not commit to supporting or opposing any gaming legislation.
Under Texas law, Hinojosa or any governor lacks the power to veto a proposed constitutional amendment passed by the legislature, meaning approved constitutional amendments can go straight on the ballot without her signature.
