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Gambling rhetoric heats up, even if legislation doesn't
April 14, 2009

Outside a Capitol hearing on casinos and other gambling not allowed in Texas, an advocate for legalizing slot machines at horse and dog tracks called a pro-casino lobbyist a "pathological liar."

Written by W. Gardner Selby, The Austin American Statesman

Outside a Capitol hearing on casinos and other gambling not allowed in Texas, an advocate for legalizing slot machines at horse and dog tracks called a pro-casino lobbyist a "pathological liar."

Separately, the critiqued lobbyist said anyone suggesting that he scrawled on a handout and misrepresented Lt. Gov. David Dewhurst's position on casinos was lying.

The testy moments last week served as reminders that the fight over bolstering legal gambling in Texas beyond betting on dogs and horses remains a legislative spectacle, entwining lawmakers, lobbyists, developers, Indian tribes, casino interests, tracks, and horse and dog owners, some of whom might feel like perennial players in a gamblers' version of the movie "Groundhog Day."

The renewed bickering this session could again bog down efforts to expand gambling.

"Sometimes the lobbyists get in the way of progress," said Mike Lavigne, a spokesman for horse and dog track owners.

Legislators last took a pro-gambling step 18 years ago by sending voters the proposal authorizing a state lottery.

Public relations consultant Chuck McDonald, who has worked for and against gambling interests but is on the sidelines this session, suggests that lawmakers are leery of gambling proposals because they recognize that both the lottery and pari-mutuel betting on dogs and horses, approved in 1987, haven't been judged as fiscal or political boons.

Despite high hopes, tracks have struggled. And the lottery, which has generated more than $16 billion in state revenue, still doubles as a target for critics who say lawmakers sold it as more lucrative than it has proved.

Any gambling proposal "is a political bomb waiting to blow up in the face of whoever passes it," McDonald said.

Rep. Edmund Kuempel, chairman of the House Committee on Licensing & Administrative Procedures, has said a gambling measure should be achievable this year.

Kuempel, who presided over hours of public testimony last week, huddled privately Monday with House sponsors of various proposals in hopes of reaching a common-ground package. "We've got to explore every possibility," he said.

A huge challenge for Kuempel, a Republican from Seguin, is the belief that any move to expand gambling likely requires voter approval of a constitutional amendment. It takes hard-to-get two-thirds approval margins in the House and Senate to put an amendment before voters.

Republican leaders have steered clear of the issue. Gov. Rick Perry hasn't revived his 2004 call for video lottery terminals (slot machines) at tracks; spokeswoman Allison Castle said he opposes any expansion in gambling, a position echoed by Dewhurst. And House Speaker Joe Straus, whose father oversees a horse racing track, is recusing himself from actions related to gambling at tracks — though observers say the legislators Straus appointed to Kuempel's committee ensured that the panel wouldn't bottle up gambling proposals.

Separately over the weekend, the El Paso Times quoted Rep. Norma Chávez, D-El Paso, as saying that her effort to help the Tigua tribe get a change in law enabling it to open an El Paso casino was "not salvageable." She singled out concern about the tribal governor having a criminal record dating to 1987.

In Kuempel's favor, Rep. Jim Pitts, R-Waxahachie, chairman of the House Appropriations Committee, has said he'd welcome action potentially making tax revenue from gambling halls available by 2011, when legislators fear they'll face a budget revenue shortfall of $10 billion or more.

In the Senate, though, there's little sign of momentum for gambling. Two senators filed a plan potentially leading to up to a dozen resort-like casinos across the state. But Sen. Kip Averitt, R-Waco, declined to file a proposal potentially enabling slot machines at tracks after finding little Senate interest.

At the start of the session, Kuempel provided space in his office for casino and track interests to hammer out an agreement potentially bringing legislators together. Noting the state's financial straits, Kuempel exhorted: "If you can't get it together this time, all of you should be shot."

Subsequent passage of a federal stimulus package diminished the state's financial pressures. And by last week, leaders of a pro-casino group and a group representing horse and dog tracks were circulating sharply worded letters suggesting a gulf between them over such topics as how to tax gambling venues and how many dollars and jobs would reasonably come from resort-like casinos compared with slot parlors at tracks.

The uncertain prospects for gambling legislation might explain why interest groups consistently enlist lobbyists, some of whom expect up to $149,999 this year for helping gambling clients.

Lobbyist Cliff Johnson, a former House member and gubernatorial aide whose clients include Gtech, which helps run the Texas lottery, said lobbyists need to be in place in case a legislative breakthrough suddenly hurtles Texas toward more gambling. Lobbyists who sit out risk missing out if a big deal gets cut.

More than 250 lobbyists registered an interest in gambling legislation with the Texas Ethics Commission this year, but fewer than 25 get drawn into day-to-day jousting.

Lobbyists in the mix include Gordon Johnson, who represents a greyhound track; Mike Toomey, the former Perry chief of staff who represents a horse track; and Chris Shields, who represents a pro-casino group headed by retired Dallas hotel-casino developer Jack Pratt. Shields also has Nancy Fisher, former chief of staff to former House Speaker Tom Craddick, on his team.

Suzii Paynter, director of the anti-gambling Christian Life Commission, which has retained three lobbyists, compares the repeated buildup of pro-gambling lobbying to almost hitting a slot machine jackpot.

"It's kind of the same rhythm," Paynter said. "You get that near-win feeling, and it's just enough that you want to come back and try again next session."

A pro-casino legislator, Rep. Jose Menendez, D-San Antonio, said he tries to look past sparring among groups. Of late, for instance, horse breeders oppose the slot machine approach sought by track owners.

"We're not going to have anything if we keep fighting," Menendez said.

Friction among interests may underlie taut moments — like the two outside Wednesday's hearing.

Shields objected to speculation that he misrepresented Dewhurst's position on casinos by scrawling "matters to Lt. Gov. and members" on a handout to legislators. He said he hadn't done so and told Dewhurst as much; he offered to submit to a handwriting analysis.

Separately, Tommy Azopardi, president of Texans for Economic Development, who is representing horse and dog track owners, called Shields a pathological liar. He said Shields was incorrect when he said the track group hadn't visited legislators and wouldn't succeed in getting a legislator to file their proposal for slot machines.

A day later, Azopardi said he'd meant that Shields has a problem recounting events: "We've been debating this now for so long; I shouldn't have let my emotions get to me."

Shields later said: "We have an honest difference of opinion about where the votes are in the Texas House. ... The issue of expanding gaming in our state is way too important to cloud with personality issues."



Lobbyists


More than 250 lobbyists have registered an interest in lobbying on gambling, though most are not involved in day-to-day tussling. More than 20 have reported that they expect to be paid substantial sums by a client with a gambling interest.

Lobbyists registering an interest in gambling legislation with projected compensation of $100,000 to $149,999, with client

Joey Bennett, Alabama-Coushatta Tribe of Texas

Cliff Johnson Jr., Gtech Corp.

Cal Varner, Gtech Corp.

Andrea McWilliams, Kickapoo Traditional Tribe of Texas

Dean McWilliams, Kickapoo Traditional Tribe of Texas

Duane Galligher, Texas Gaming Association

Christopher Shields, Texas Gaming Association

Susan Galloway Shields, Texas Gaming Association

Lobbyists projecting compensation of $50,000 to $99,999, with client

William Phenix, Multimedia Games Inc., Austin

Nancy Fisher, Texas Gaming Association

Lionel 'Leo' Aguirre, Ysleta del Sur Pueblo Tribal Council

J.E. 'Buster' Brown, Ysleta del Sur Pueblo Tribal Council

Steve Bresnen, Aces Wired Inc., Dallas, and Bingo Interest Group, Fort Worth (compensation from both groups combined expected to range from $100,000 to $199,998)

Walter Fisher, Alabama-Coushatta Tribe of Texas

Patrica Shipton, Alabama-Coushatta Tribe of Texas

Patrick Haggerty, Bingo Interest Group, Fort Worth

James F. Shearer, Chickasaw Nation

George P. Pierce, North Texas Gaming Group

C.L. Matthews, Pinnacle Entertainment Inc., Las Vegas

Mike Toomey, Sam Houston Race Park, Houston

James W. Jonas, Isle of Capri Casino Inc., St. Louis

Anti-gambling lobbyist projecting compensation of $50,000 to $99,999

Rob Kohler, Baptist General Convention of Texas, Christian Life Commission

Source: Texas Ethics Commission.

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