Lone Star Racetrack near Dallas is owned by Oklahoma ’ s Chickasaw Band , which also owns Winstar Resort , the largest casino in the state just over the Texas border
$ 250 million each . The proposed tax rate in all cases is 15 percent . The addition of the horsemen is a new factor this session . The hope is that by bringing them into the fray , the scope and reach of legislative support will expand into rural areas of Texas .
Both of these bills could be marked up and edited through the committee hearing process , with changes to the locations , spending protocols and tax rates likely before either bill exits committee and reaches a floor vote . It is important to note that during the 2021 session , previous bills failed to reach a full committee vote and thus did not progress to the floor .
Constituent Support
The 2023 legislative drafting has coalesced the public and the industry . The results of a University of Houston Hobby School of Public Affairs poll conducted in January 2023 , after the draft bill ’ s release , show strong support for expanding gaming across a wide range of population groups .
Over 75 percent of Texans support the passage of the legislation . Interestingly , the poll shows support from groups who have normally been opposed to the expansion of gaming , born-again Christian and evangelical Protestants .
Summary of SRJ 17 Legislative Polling *
• 75 percent of Texans support , including 41 percent strongly supporting its passage .
• 25 percent of Texans oppose , including 13 percent strongly opposing its passage .
• 66 percent or more ( roughly two-thirds ) of each of the 22 Texas sociodemographic subgroups examined support its passage .
• 83 percent of Black , 77 percent of Latino , and 73 percent of white Texans support its passage .
• 78 percent of men and 72 percent of women surveyed support its passage .
• Texan generational support for its passage ranges narrowly from a high of 81 percent among millennials to a low of 69 percent among Gen Z .
• 80 percent of Texas Democrats and 72 percent of Texas Republicans support its passage .
• 69 percent of Texas born-again Christians and 61 percent of evangelical Protestants support its passage .
* Source : University of Houston , Hobby School of Public Affairs
Upon releasing the House version of the bill in January , the Chickasaw Nation voiced their approval . This is interesting , considering their ownership interests in Lone Star Horse Track and the WinStar Casino in Oklahoma , whose main source market is the Dallas metroplex .
As mentioned , including Texas horsemen has provided additional support and fodder that could propel the legislation forward . Opponents of gaming expansion in Texas continue their efforts in the state .
The Considerations
In most states where recent gaming legislation has passed , one significant impetus has been the need or desire to raise gaming tax revenues for the host state ’ s budget . As noted , Texas has continued to buck that need and in 2023 they are riding a raging bull of a budget surplus to the tune of $ 33 billion . Due to state constitutional laws , the majority of that surplus will be saved in multiple “ rainy day ” funds or future spending . However , approximately $ 10 billion may be used this session to offset property tax increases , raise teacher salaries , and provide revenue for other statewide needs .
While the state does not need funds , a compelling argument exists to provide expanded gaming opportunities . For the past 30 years , Texans have been traveling to neighboring states , mainly Oklahoma and Louisiana , to gamble — leaking tens and hundreds of millions of gaming tax revenue dollars out of the state . Repatriating those funds could be a continued annual source of income for the state of Texas .
Further , the proposed legislation calls for $ 9 billion to be spent on resort development , which could create 12,000-15,000 one-time construction and related jobs , and 8,000-12,000 permanent full-time hospitality and casinorelated jobs . These jobs and spending impacts will have significant positive effects on the host cities , most notably in the Gulf Coast communities of Corpus Christi and McCallan .
Next Steps and Potential Outcomes
The process by which legislation could get both passed and enacted remains the same . The bills will get assigned a committee and a hearing could occur in each . The committee assignments will be one of the first telltale signs of potential success or imminent demise .
If a bill progresses through the committee hearing and a positive committee vote , it will reach either the House or Senate floor . Due to the nature of the bill and the state ’ s constitution , each body would have to approve the bill with a two-thirds majority vote . If a bill passes both bodies with the supermajority vote , the bill will move to the governor ’ s desk , and a statewide referendum question would be put forth to voters .
In the best-case scenario , that referendum vote could occur in November 2023 . Should it pass with a majority vote in November , the state could begin setting up the Texas Gaming Commission , devising regulations and
30 Global Gaming Business APRIL 2023