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New Legislature, New Discussions for Expanded Gambling in Texas

Posted on December 14th, 2010

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Gambling in Texas is expected to rise again as the state looks to lessen the budget deficit. As the new legislature begins next month, supporters of gambling now look towards profits of up to $1 billion because of the slot machines in the racetracks and Las Vegas-like casinos. These steps would increase the number of jobs and will provide much needed revenue. Texans also favor the move to expand gambling as it provides stability to the budget without having to impose cuts, according to polls.

The gamblers, however, were dealt a sucker punch in November’s election, in which the Republicans took control of the House.

Gambling does not have the votes it requires right now mainly because of the perceived harms it poses to the community. The legislature, which begins its term on Jan 11 for its first session of the year, is already planning for debate on key issues. With expanded gambling expected not to push through, little time may be set aside by the legislature to discuss on it.

The main backers have not yet united in their plans which include slot machines at race tracks and casinos in the state. The plan would need at least two thirds majority to be passed and sent to voters. Joe Straus, House Speaker and a Republican has said no to gambling discussions. Sen. John Carona, head of economic committee, has already turned down a casino bill offer. “It is highly unlikely that any version will be found acceptable by the required number of members in either chamber,” Carona said. The supporters of gambling reportedly threw $1 million in last month’s elections, mainly on losing candidates, non-profit Texan for Public Justice reported.

For the backers, the game is not yet over, as they believe they can persuade lawmakers to let the people decide in a referendum. Mike Lavigne, spokesman of Texans for Economic Development, said the industry’s two arguments were the budget and the ailing economy.
With no new revenue, the state will have to cut nearly one fourth of their spending and shun programs such as prisons, roads etc to steady the budget which faces deficit of $24 billion for the next two years. “Once those numbers become reality for many members, they’re going to have to consider all kinds of options,” Lavigne said.

The new GOP-backed legislature is a big hurdle for the plan. Out of 150 members in the House, 115 answered about gambling. 54 were against the expansion, 27 supported it and 26 did not comment. 51 votes are needed to oust the plan from the House. 24 out of 31 senators answered. 11 were against the plan and there were only six supporters. Others either declined to comment or were undecided. 11 votes are enough for rejection.

Some of the Lawmakers, who were supporting the plan, said they could allow the slot machines in some positions, but were against casinos. The main force behind the plan, Texas Gaming Association, said they will try their luck again.

Lawmakers will look for a more secure way rather than choosing unstable gambling to balance the budget, predicted Suzii Paynter, director of the Baptist General Convention’s Christian Life Commission. There was a 5.5 percent decrease in taxes paid by the industry in 2009 as compared to 2008. “A few people have the potential to make a tremendous amount of money, but [gambling] brings in undeniably dysfunctional things,” she said. “Isn’t there a better way?” Backers of the plans said they were finding ways to prevent the gamblers and the money from going to Oklahoma, Louisiana and New Mexico. Rep. Armando “Mando” Martinez, D-Weslaco said,” If we can use it as a force of revenue and take programs and diffuse it toward education and health care in the state, then, yes, I am in support,” .

Lawmakers adopted the gambling system during the financial turmoil, but now, most believe the costs are outweighing the benefits. One such lawmaker is Rep.-elect Paul Workman, who disapproves of the plan saying it is not a good industry for the state. “It adds a burden to cities and counties and I don’t think that it’s appropriate for our state” to deal with that, he said. Rep.-elect Jason Isaac, who backed the idea of slot machines at tracks last month, also backed out when voters in his constituency disapproved of it.