Bills to legalize destination casinos, mobile sports betting advance in Texas House

AUSTIN — Destination casino resorts and mobile sports betting advanced in the House on Wednesday despite warnings that they’ll lead to more addiction, sinking some Texans further into debt and harming Native American tribes.

Two proposed constitutional amendments drew bipartisan support. Both would expand gambling in the Lone Star State, where polls show more than half of residents support resort-style casinos and legalized sports betting.

A constitutional amendment by GOP Rep. Charlie Geren of Fort Worth would let voters decide if they want eight destination casinos in Texas — with two going to the Dallas-Fort Worth area. His amendment tentatively passed, 92-51, though it needs 100 votes to move to the Senate.

The other House joint resolution, by Rep. Jeff Leach, R-Plano, would trigger a referendum on mobile sports betting. It tentatively passed, 97-44 – just three votes short of the margin needed. For constitutional amendments to make the Nov. 7 ballot, they need a two-thirds vote in each chamber.

Leach’s resolution would allow only mobile sports betting and would prohibit brick and mortar sportsbooks. Pro sports teams would partner with a mobile sportsbook, like DraftKings or FanDuel, to offer sports betting in Texas.

Both proposals could receive a final vote as early as today. The enabling legislation for mobile sports betting tentatively passed, 84-52. Seguin GOP Rep. John Kuempel, author of the bill implementing the casino measure, delayed the vote on his bill until today.

Even though proponents of expanded gambling might flip enough House votes to help the two proposals pass, it’s unclear if either will end up on the November ballot. Lt. Gov. Dan Patrick, the Senate’s presiding officer, has said neither has enough votes to clear his chamber.

Proponents were cheered, as past proposals on sports betting and casinos didn’t even receive a committee vote.

Neither of the proposals, though, has received a committee hearing in the Senate, where Patrick exerts more sway than most lieutenant governors in modern times.

“This bill is not going anywhere,” said GOP Rep. Matt Shaheen of Plano, a staunch opponent of expanded gambling. “This is dead.”

Ahead of this year’s session, casino company Las Vegas Sands hired scores of Austin lobbyists and donated millions in campaign contributions on both sides of the political aisle.

Gov. Greg Abbott has treaded cautiously, saying he was “open” to expanded gambling. House Speaker Dade Phelan, R-Beaumont, also expressed support for resort-style casinos.

Las Vegas Sands is backing Geren’s proposed constitutional amendment and the enabling legislation carried by Kuempel. Dallas Mavericks owner Mark Cuban previously told The Dallas Morning News that it’s his goal to build a new NBA arena within a destination resort, in a partnership with Sands.

“Let’s let our voters decide,” Geren said from the floor Wednesday.

His joint resolution included concessions to different members, such as adding one destination resort in Central Texas and another in the Rio Grande Valley. Under his plan, Houston gets two, while the San Antonio and Corpus Christi areas would each get one.

Members of both parties warned of downsides. Rep. James Frank, R-Wichita Falls, pointed out that the legislation “sets aside money because of problems it’s going to create,” a reference to how a slice of new tax revenue would go to funds for gambling addiction treatment. The Kickapoo tribe, which operates a casino in the Rio Grande Valley also warns that the proposals could severely dilute costumers and force them into bankruptcy.

House Democratic Caucus Chairman Trey Martinez Fischer of San Antonio said he’s not a firm opponent of gambling but argued against both proposals.

“Let’s get some time to get this right,” Martinez Fischer said. “I’m not a ‘no,’ I’m a ‘not now.’”

Under Leach’s bill, Texas would join 35 states, along with Washington, D.C., in allowing sports betting.

Leach said his bill wouldn’t expand gambling, as Texans already place bets illegally by using offshore platforms or local bookies.

“Texans are going to continue to commit criminal behavior, unsafe behaviors, unsafe activity, unregulated activity every single day,” he said. “We have an opportunity now to put a framework in place to allow them to come out of the shadows.”