The pros and cons of bringing legalized gambling to Texas have been debated for years, with a fairly recent joint resolution by the Texas House and an upcoming land zoning vote putting the issue at the forefront once again.
SJR 16, introduced in the state legislature in November of 2024, proposes a constitutional amendment that would authorize casino gambling at destination resorts and authorize sports wagering.
As The Dallas Express reported, the Irving City Council is expected to vote later this month on whether to rezone a parcel of land owned by a company associated with the Las Vegas Sands Casino to allow gaming.
Purported benefits of bringing casinos to Texas include stimulating the economy and increasing tax revenue, while alleged detriments range from increased reports of addiction to human trafficking.
To help readers better understand the issues, The Dallas Express has prepared a primer summarizing the arguments related to casino gambling in Texas.
The Pros:
Some Indian casinos in Texas claim to be local economic engines. The Naskilla Casino’s website states that the casino brings $212 million to the region, creates 825 permanent jobs, and maintains an average wage for an employee of $50,000. This average wage is above the roughly $41,000 estimated by the MIT living wage calculator, which is a livable wage for a single adult living in Angelina County.
Economists from Texas universities agree.
“If a casino comes to an area that doesn’t have them and there aren’t casinos in, like, adjoining counties, the realization is more substantial, and, in more rural situations, what it does is it tends to create a significant number of new jobs,” Texas A&M Central Texas professor and economist Dr. Rob Tennant, PhD, told KWTX. “It tends to increase salaries, wages in those communities, and it can bring people in from the surrounding communities to those venues.”
The Texas Public Policy Foundation (TPPF) investigated the tax revenue question and found that if Texas taxed its potential casinos in the same way that other states do, like Ohio, the revenue increase could reach the hundreds of millions.
Chief Research Officer Derek Cohen, Ph.D., published a study titled “The Costs of Chance: Evaluating the Economic and Social Implications of Casino Gambling Expansion in Texas.” Cohen used Ohio’s tax system as a model and found that the Lone Star State could make $834 million in tax revenue from casino gambling.
The Cons:
Cohen’s study found potential risks for increases in gambling addiction. He found that the number of Ohioans who identified as “problem gamblers” or gamblers with a severe addiction increased to over 250,000 after legalization. Since Texas has more people than Ohio, Cohen’s calculations indicate that the number of problem gamblers in Texas could be around 600,000.
Crime is another concern with casinos.
The American Gaming Association (AGA) published a report, “Preventing and Combating Human Trafficking in the Gaming Industry,” wherein the AGA acknowledged that “Traffickers take advantage of legitimate industries and supply chains to find, exploit and traffic victims. This is especially true for the travel and tourism industry — including casino gaming — when properties are unwittingly used to facilitate criminal activity.”
A study titled “CASINOS, CRIME, & COMMUNITY COSTS” by researchers Earl L. Grinols and David B. Mustard found that “Crime rates were stable prior to opening, slightly lower in the year of casino introduction, returned to approximately average levels for the next two or three years, and increased thereafter.”
“The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8% of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per year.”
The leadership of some of the Texas Indian tribes, such as the Kickapoo, who operate the Lucky Eagle Casino in Eagle Pass, oppose the creation of new casinos in metro areas.
Kickapoo Tribe Chairman Juan Garza told The Houston Chronicle in 2023 that if the Texas legislature changes the law to allow casinos without introducing an amendment to forbid the construction of a casino near San Antonio, the Lucky Eagle could lose most of its business.
“It is extremely concerning that the out-of-state interests behind the casino and sports wagering bills have excluded the Kickapoo Traditional Tribe of Texas from their legislation,” Garza said in a statement to the outlet. “Our Tribe has been in Texas for centuries, [and] it is disheartening to have these big corporations prioritized over the economic survival of the Kickapoo.”
The State:
Texas Gov. Greg Abbott has spoken out on both sides of this issue.
Abbott posted on Twitter in 2015, “I’m saying NO to gambling expansion in Texas.” He attached a link to what appeared to be a related news article, although it is no longer a working link.
However, in 2024, Texas Scorecard reported that Abbott and other state officials were accepting donations from pro-casino political action committees.
Regardless, Abbott will not be alone in taking action on the matter. Gambling is forbidden under Texas Penal Code Chapter 47. State gaming laws can only be changed by amending the state constitution, which requires two-thirds approval in the Texas House and Senate and the approval of a majority of voters on the statewide ballot.
The City of Irving:
The Dallas Express reported that the City Council of Irving may vote on rezoning a tract of land for gaming as soon as March 20.
“This will be transformational. It will change our city,” Councilman Kyle Taylor (D7) said during the February 27 work session. “Is it going to have some challenges? Yes. Is it going to have some rewards? Yes.”
Councilman Luis Canosa (D4) raised concerns that the vote on this matter was being undertaken too quickly and without the public’s consent or input. He also expressed concern about “predatory gambling.”
Council Member Al Zapanta (D6) indicated that if the city approves the rezoning, the decision about what goes in the rezoned area will be effectively determined by the state because the state has the authority to set gambling laws.