A new endeavor to legalize casinos and sports betting in the state of Texas is underway as Senator Carol Alvarado pre-filed Senate Joint Resolution 17. With the commencement of the legislative session, the bill is poised for consideration. The proposed resolution aims to establish a Texas Gaming Commission to oversee legal commercial gambling within the state. A pivotal aspect of the resolution involves a public referendum on legalizing sports betting and a limited number of large-scale casinos.
Creating a Regulatory Framework:
Senate Joint Resolution 17 outlines the creation of a Texas Gaming Commission, which would be responsible for regulating casino gaming and sports wagering. The resolution seeks to harness economic development, job growth, tax relief, and funding for education and public safety. The commission’s role extends to authorizing and regulating casino gaming at select destination resorts and licensed facilities.
Destination Resorts and Licenses:
The resolution envisions the issuance of Class I licenses to up to four destination resorts located in metropolitan areas with a population of two million or more. These resorts would become hubs of limited casino gambling, subject to regulatory oversight. Additionally, the resolution introduces Class II licenses for limited casino gambling within major metropolitan areas, specifically for horse racing operators with existing pari-mutuel wagering licenses. Similar provisions apply to Class III licenses for operators of greyhound racing tracks.
Tribal Involvement and Taxation:
While tribal entities are already permitted to offer casino gambling under Federal law, the resolution introduces taxation provisions. Tribal operators would be required to enter effective gaming agreements or adhere to state and Federal laws to contribute a portion of their revenue to state taxation.
Taxation Structure:
The resolution outlines a taxation framework, with a 10% tax on gross gaming revenue (GGR) from table games and a 25% tax on GGR from slot machines. This structure ensures a regulated and sustainable source of revenue for the state.
Legislative and Public Approval:
Senate Joint Resolution 17 sets a high bar for approval. Even if endorsed by a two-thirds majority in both legislative chambers, the resolution necessitates a statewide public vote on November 7, 2023. Amending the Texas Constitution to allow such gambling practices requires the collective voice of the public.
Past Attempts and Future Prospects:
The resolution builds upon previous legislative efforts in 2021, notably HB2070 and HJR97, which aimed to legalize sports betting but did not progress to a vote. Senator Alvarado’s resolution revitalizes the conversation, presenting a comprehensive approach to both casinos and sports betting.
Senate Joint Resolution 17 introduces a pivotal opportunity for Texas to shape its gambling landscape. By establishing a regulatory framework, fostering economic growth, and engaging public opinion, the resolution provides a comprehensive path toward legalizing casinos and sports betting. As the legislative process unfolds and public sentiment is gauged, Texas stands at the threshold of potentially embracing a new era of regulated gambling. The resolution’s journey reflects the state’s commitment to responsible and informed decision-making that aligns with the evolving dynamics of the gaming industry.