In a significant shift for Texas gambling, Democratic state Representative Vikki Goodwin unseated Republican Lt. Gov. Dan Patrick during the recent elections, a change that carries implications for sports betting and casino expansion in the state. Patrick had long been a formidable roadblock against such initiatives, effectively preventing many gambling bills from even reaching the Senate floor throughout his tenure.
Goodwin's victory reflects a broader shift, as Texas experienced a surge of Democratic wins, including the election of James Talarico to the U.S. Senate and Gina Hinojosa as the new governor.
The lieutenant governor traditionally presides over the Texas Senate and controls the bill agenda. For over a decade, Patrick utilized this power to block efforts aimed at expanding gambling in Texas. Mark Cuban, a billionaire entrepreneur, commented, "It certainly changes the calculus. But I have no knowledge of anything that may or may not happen."
Industry experts suggest that Goodwin's win could expedite timelines for gambling legislation, previously believed to be stalled until at least the 2030s. "What we all consider to be the single largest blocker to even floor consideration of gambling debate will now be out of office," said Josh Kirschner, a partner at Holland & Knight.
However, the road to legalization is far from straightforward. Texas still requires a constitutional amendment supported by two-thirds of the Republican-dominated Senate and a majority of voters.
Despite these hurdles, some believe the dynamics have shifted for the better. Brendan Bussmann, a managing partner at advisory firm B Global, mentioned, "Is gaming alive? I don’t know, but it’s better than it was yesterday. We’ll see where the governor stands, lieutenant governor stands. There’s a host of different things there. The thought that Texas won’t do this until 2033, I would say, is no longer the case. That moves up, but we don’t know what that looks like."
Patrick’s opposition was pivotal in blocking significant legislative advances. In 2023, the Texas House approved a constitutional amendment for online sports betting with a 101-42 vote, the furthest any gambling bill had progressed in two decades before Patrick halted it shortly thereafter.
Change in leadership does not guarantee progress for gambling initiatives. The Texas Senate remains under Republican control, with Goodwin presiding over a body made up of 19 Republicans and 12 Democrats. GOP lawmakers could also redefine chamber rules to limit Goodwin’s influence, which had been considered before Patrick's defeat.
Securing bipartisan support will be essential for any proposals aiming to expand gambling, as they require substantial legislative backing and voter approval. Even if all Senate Democrats support a proposal, it would need at least nine Republicans to pass.
In terms of perspectives, Goodwin has shown support for gambling expansion in the past, advocating for voters to have a say in the decision-making process. "Well, I think that we should allow personal freedom, personal responsibility in the state of Texas," she remarked during a recent interview.
On the other hand, Hinojosa, the newly elected governor, has expressed hesitation, opposing the 2023 amendments and playing down gambling issues during her campaign. While she cannot veto a constitutional amendment, her stance will influence the associated legislation concerning licensing and taxation.
Tilman Fertitta, a Houston billionaire and owner of the Houston Rockets, is seen as a potential influencer in Texas gambling expansion efforts. Currently immersed in finalizing a $17.6 billion deal for Caesars Entertainment, Fertitta could have significant sway, particularly as many Texans currently travel to neighboring states for gambling opportunities.
The financial muscle behind gambling expansion in Texas is noteworthy, with Miriam Adelson, majority owner of Las Vegas Sands, reportedly investing around $29 million in Texas political activities. However, anti-gambling Republicans have successfully defeated Sands-backed candidates in recent primaries.
Polling indicates a stronger public preference for destination casinos over mobile betting. A University of Houston survey revealed that 73% support destination resorts, with only 60% favoring sports betting.
As the political landscape in Texas evolves, the relationship between incoming Democratic leaders and significant gambling proponents remains crucial. Josh Kirschner highlighted the need for collaboration despite varying priorities among stakeholders, signaling that the debate over gambling in Texas could soon shift once again as different entities weigh their interests.
