Senator Eliot Shapleigh - El Paso, Texas

Rep. Joe Straus

With the economy slumping and state revenue getting tighter, gambling proponents are betting that it’s the perfect time to bring casino-style gambling to Texas.

They say casinos could bring billions of dollars into the state and add thousands of jobs.

Some of the extra push this session is coming from Galveston, the storm-ravaged island that is struggling to recover from Hurricane Ike. And the continued expansion of tribal casinos just across the border in Oklahoma continues to attract more dollars from North Texas.

"We’re optimistic we’ll get a fair audience at the Legislature," said Duane Galligher, a lobbyist for the Texas Gaming Alliance. "Gaming is always prevalent, but the fact that the budget looks far worse than it did two years ago has legislators looking for new sources of revenue."

The Texas Gaming Alliance represents the Las Vegas Sands and Station casinos and is chaired by Dallas businessman and former Hollywood casinos chief executive Jack Pratt.

Their plan would call for a dozen resort-style casinos as well as allowing slot machines at race tracks and the three recognized Native American tribes in Texas. For Tarrant and Dallas counties, that could mean as many as four casinos, Galligher said.

By law, Texas voters must approve a constitutional amendment.

Competing legislation

Competing bills are also expected; one would bring slot machines to ailing race tracks and another would legalize poker.

The gaming alliance’s proposed legislation, which it says would pump $1 billion into transportation and $1 billion into college scholarships, is similar to a bill filed during the last session that never came up for a vote. Only one gambling bill, which would have permitted limited gambling for the Tigua and Alabama-Coushatta Indian reservations, made it to the floor last session.

Despite the economic issues, state Rep. Charlie Geren, R-Fort Worth, said it is too early to tell if gaming legislation has a better chance this session.

"I’ve got no interest in any gambling legislation at all, but I think it’s ludicrous to say it has a chance of getting passed when you don’t know who is on the committee," said Geren, who has supported casinos in previous sessions.

Rob Kohler, a consultant and lobbyist for the Christian Life Commission of the Baptist General Convention of Texas, said he still believes that gambling supporters cannot get the votes to pass a casino bill or a slot machine bill for racetracks. He has been warning legislators that allowing either to become legal could open Texas to flood of Indian gaming that the state could not control.

"We don’t think they stand any more of a chance this session than the last," Kohler said. "Both of those bills require a constitutional amendment. With that constitutional amendment, there are huge hurdles to get across; it requires a supermajority of 100 votes [in the House] and 21 in the Senate. We don’t think they have either of those numbers."

Gov. Rick Perry remains "opposed to expanding the footprint of gambling," said spokeswoman Allison Castle.

Better playing field

Despite the pessimism, there are 205 registered lobbyists who list clients with an interest in gambling, according to the Texas Ethics Commission.

The new speaker of the House, Joe Straus, R-San Antonio, has relatives involved in horse racing. He has said he will not use the speaker’s position to promote horse-racing interests.

But the change in House leadership has some believing that this is the year casinos will become legal in Texas.

"It looks like there’s a good chance it’s going to pass this time and get before the public," said investor Dave Mitchell of Fort Worth, the former partner of Fort Worth businessman Holt Hickman, who has worked to bring a casino to the Fort Worth Stockyards. Mitchell isn’t sure whether he will take an active role in pushing for a casino, but he said he received several calls Tuesday from interested parties who wanted to discuss the issue.

Rebuilding Galveston

In Galveston, Democratic state Rep. Craig Eiland said there has been intense interest in bringing casinos to the resort town.

In November, the University of Texas Medical Branch at Galveston announced it was cutting up to 3,800 jobs, hurting the local economy and jeopardizing emergency medical care on the island. Last week, the Shriners Hospital for Children in Galveston, which treats burn patients and has 325 employees, announced that it is closing.

"My job is — if there is gambling legislation — to make sure that Galveston has the opportunity to participate," Eiland said.

Prominent Galveston businessman Harris "Shrub" Kempner, whose grandfather helped rebuild the city after the 1900 storm, strongly opposes gambling. He said it will hurt many of the small businesses along the Strand that favor it.

"For Galveston, I think it is a terrible idea," Kempner said. "Geographically, if you start putting casino hotels of any kind of reasonable size that have at least 2,500 jobs and an average size of 50 to 60 acres, you’re going to put a stress on aging infrastructure and neighborhoods. You’ll destroy the possibility of a lot of people living here in terms of middle class housing and attracting population back."

Despite casinos hurting in Las Vegas, the industry continues to cast a covetous eye toward Texas.

"The industry looks at Texas and sees a gold mine," said Bill Thompson, a professor of public administration at the University of Nevada, Las Vegas, who followed the gaming industry for years and says casinos are holding their own outside of Las Vegas.