Years of political developments in Texas have paved the way for a potential breakthrough in gaming legislation during the upcoming 2025 session, as highlighted by a group of lobbyists at the Global Gaming Expo (G2E) in Las Vegas on Tuesday (8 October).
The session attracted a large crowd eager to learn about the latest advancements in the Lone Star State. David Rittvo from Tailored Hospitality Advisors led the discussion with three heads of governmental relations: Andy Abboud from Las Vegas Sands (LVS), Rick Limardo from MGM Resorts, and Caesar Fernandez from FanDuel.
Abboud was particularly optimistic, asserting that gaming expansion in Texas is “inevitable.” He emphasized that even if 2025 is not the year, it would still mark “another session of great progress.” Regarding the likelihood of passage next year, he confidently stated that it was now “greater than 50%.”
The journey towards legalization is no walk in the park, as it involves a constitutional amendment, enabling legislation, and approval through a statewide referendum. Limardo pointed out that the main challenge at the moment is securing support in the senate. In the past, bills aiming to legalize casinos and sports betting passed the house but faced opposition in the senate.
“We need to demonstrate viability in the senate and secure the necessary votes,” Limardo explained, revealing that they have been informed directly that the votes are currently lacking.
Fernandez highlighted the public support for sports betting, citing polling data indicating that a majority of state voters are in favor of having a say in the matter. He projected that the market could generate $250 million in annual revenue and $1 billion in tax revenue within five years. Currently, only New York achieves similar numbers, despite facing criticism for its high tax rate.
The prevalence of the illegal gambling market in the state was a recurring theme. Abboud noted that Texas’ aspiration to become the largest legal market is overshadowed by the reality that it already ranks among the largest illegal markets. Fernandez referenced data estimating the illegal sports betting market in Texas at around $7 billion per year.
The fact that residents are traveling out of state to gamble legally is another concern. Texas is surrounded by neighboring states like Oklahoma and Louisiana, both of which have well-established gaming industries. Stakeholders in those markets have reaped the benefits of Texas’ delayed gaming expansion.
Limardo emphasized the need to collaborate with local stakeholders, including track teams and sports teams, to present a united front. With over 30 million residents, Texas is the second most populous state in the US, making it an enticing market for all forms of gaming. Despite this potential, progress on the legislative front has been gradual.
One of the key obstacles is the state’s unique power structure, particularly Lieutenant-Governor Dan Patrick’s control over the senate and legislative committees. For years, Patrick has been a major roadblock to gaming expansion in Texas.
However, panelists expressed confidence that if stakeholders can rally enough support, Patrick would be willing to bring the bills to a vote. Abboud declared, “Once we sway them, (Patrick) will call for a vote.”
In conclusion, the prospects for gaming legislation in Texas are looking brighter than ever, with stakeholders and lobbyists working diligently to overcome hurdles and make the most of this untapped market.
