Expanded gambling: It isn't just for race tracks any more

Here's an update to the story about the big expanded gambling bill that was filed yesterday.

Slot machines also would be allowed at the state's existing race tracks under the proposal by Sen. Rodney Ellis, D-Houston; Sen. John Carona, R-Dallas; Rep. Jose Menendez, D-San Antonio, and House Appropriations Committee Chairman Jim Pitts, R-Waxahachie. In addition, the three federally recognized Indian tribes could operate a casino on their tribal lands.

"Texans already are voting with their feet and going out of state" to gamble, Ellis said. Menendez noted that Texas is "surrounded by gaming."

Opposition immediately arose from conservative and Christian groups and a racetrack group pushing more narrowly for slot machines at tracks. Backers of Joint Resolution 31 and Senate Bill 1084, the broad gambling legislation, said their proposal would bring in at least $3 billion a year in new state and local revenue.

The legislation calls for $1 billion to be funneled to a trust fund for college scholarships and another $1 billion to transportation. Casino proponents also said their proposal would create 90,000 to 120,000 jobs.

I don't believe any of those economic projections. Then again, I never believed the projections that the horse racing interests gave about their slots-at-racetracks proposals. I think there will be a net benefit to the state, at least in terms of revenues taken in - the bulk of the social costs will not be borne by the state, so the books will looks good - but $3 billion a year and 100,000 jobs is just crazy talk, as far as I'm concerned.

The way this is being done, as an alternative to slots-at-racetracks, will make for a fascinating dynamic in the sausagemaking process. I see it as lobbyist versus lobbyist, with some folks like the religious conservatives taking potshots from the sidelines. There'd be a hell of a reality TV show in there if someone had seen this coming early enough.

The legislation calls for $1 billion to be funneled to a trust fund for college scholarships and another $1 billion to transportation. Casino proponents also said their proposal would create 90,000 to 120,000 jobs.

Up to 12 casinos would be allowed statewide, with designated areas for nine of them: Galveston, South Padre Island, Bexar County, Tarrant County, Travis County and two each in Dallas and Harris counties.

A plan critic, Tommy Azopardi, of Texans for Economic Development, said the legislation would create a "widely disparate tax rate'' between casinos and tracks (15 percent versus 35 percent), wouldn't allow tracks to have the same games as casinos and would greatly expand "the footprint of gambling in the state."

Casino backers said tracks could apply for one of the casino licenses but would have to go through the same process as other applicants.

I got a press release from Azopardi, not coincidentally sent by the same guy who sent me the earlier poll information, which I've reproduced beneath the fold. It's going to be a bear trying to sort out the objective facts from the spin on this one, that's all I know. Maybe I'll get lucky and the CPPP or someone like that will weigh in. In the meantime, keep your hip-waders handy.

Statement from Tommy Azopardi on the Casino bill

"Our goal has been and remains to preserve an important agricultural industry while providing a much needed economic benefit to the state. Texans for Economic Development has consistently stated that it does not oppose the legalization of casinos in Texas as long as racetracks get full parity. Anything less will cause more harm to a horse industry that is already at a competitive disadvantage to our surrounding states.

"Our studies show that we can recapture a huge amount of the billions flowing over our borders by simply allowing slot machines at racetracks. Allowing slot machines at racetracks alone will create about a billion dollars each year for state coffers and 53,000 permanent jobs.

"The legislation filed today creates a widely disparate tax rate between casinos and tracks, does not allow the tracks to have the same games as casinos to ensure a competitive playing field and will greatly expanding the footprint of gambling in the state. Unfortunately, this approach also does nothing to bolster an important industry that has a rich tradition in Texas.

"Time and time again, polling has shown us that Texans favor putting slot machines at racetracks as a source of state revenue. In the Baselice poll from this month, 75% of Texans support this measure."

- Tommy Azopardi, Executive Director for Texans for Economic Development

Posted by Charles Kuffner on February 25, 2009 to That's our Lege