Texas should open at least five destination casino resorts, according to a Las Vegas Sands (LVS) executive, whose company is among those eager to capture a license.
Two of these casinos should be in the Dallas-Fort Worth metroplex, LVS Senior Vice President of Government Relations Andy Abboud said last week during a roundtable held in the state.
That’s where LVS wants to open a gaming property. Golden Nugget reportedly wants to open a casino in Houston.
But, before any casinos can open in the state, the legislature must approve controversial legislation that must also receive backing from the state’s voters.
Brandon Rottinghaus, a political science professor at the University of Houston, urges to proceed with caution.
Saying you want a specific number and specific location when the state currently has none is like counting your winnings at the table,” Rottinghaus told Casino.org.
“The state is still very mixed on expanded gaming in Texas, both in the public and among politicians,” he added. “There have been several attempts to amend the constitution to add destination gaming resorts, but they have not gotten much traction because of the political hurdles in front of them.”
Rottinghaus predicts what’s most likely to be approved is “a very small step towards expanded gaming, likely a large feasibility study and possibly including a modest number of licenses or online sports betting. Whatever happens, it will be baby steps towards expanded gambling in Texas.”
Commenting on the topic, Clyde W. Barrow, a professor of political science at the University of Texas Rio Grande Valley, told Casino.org that DFW could support two destination resort casinos. He also foresees two in Houston, two in San Antonio-Austin, one in Corpus Christi, and one in McAllen/Rio Grande Valley (RGV).
Similarly, Mark P. Jones, a professor at Rice University, said most proposals allocate at least two destination casino licenses to the DFW metroplex, two to metro Houston, and one to San Antonio. More expansive proposals add one each in Austin, Corpus Christi, and the RGV.
Tribal Casinos
Tribal gaming is an issue related to commercial casinos.
Embedded within these proposals are also provisions that allow the Alabama-Coushatta (Livingston), Kickapoo (Eagle Pass), and Tigua (El Paso) to operate something not of the scale of a destination resort casino, but with enough gaming opportunities that the communities would not be worse off from the passage of destination resort casino legislation than they are today,” Jones told Casino.org.
Jones predicts that five casinos is the absolute bare minimum for any “potentially successful” casino legislation in the state. Two each in the DFW metroplex and Houston, and one in San Antonio.
“More likely though would be a more expansive bill that would provide at least Austin and the RGV with a casino as well, while also allowing for sufficient gambling options for the Alabama-Coushatta, Kickapoo, and Tigua such that their venues would be at least a little bit better off after the passage of the legislation than at present,” Jones added.
Governor’s Support is Key
Among the political leaders who could play a key role in whether legislation is approved is Texas Gov. Greg Abbott (R). He wants casinos to be true destination resorts that generate high levels of tourism revenue and nongambling revenue from conferences, sporting events, concerts, and trade shows, Jones explained.
Abbott appears less likely to back casinos that principally would be patronized by local residents purely for gambling, Jones added.
“Thus, while there is an advantage to adding additional casinos as a way to gain the support of local representatives and senators, there is also a tipping point where this would result in pushback from Governor Abbott and other Republicans who are now more open to casino gambling than they were five years ago, but who still have some qualms about it,” Jones said.
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