Commercial casino and mobile sports betting have yet to crack the highly populated market that is Texas. Despite optimism during this legislative session from proponents of each, the Texas lawmakers weren’t having it, and it will be at least three years until the topic comes up again.
Texas Lottery in Jeopardy
The state Senate voted to end the Texas Lottery Commission and to place it under a separate entity. The House has not yet voted on the bill, but if passed, it could signal the end of the lottery in Texas and act as a clear bellwether as to how gambling legislation will go in the future.
The Texas Lottery has been in operation since 1992 and has become the fourth highest-grossing lottery in the nation behind New York, Florida, and California, producing north of $35 billion in revenue for state education and veteran benefits. Of the 45 states that have a lottery, none of them have shut down the moneymaking stream. Texas would be the first to do so if it passes legislation to terminate the Texas Lottery.
The move to shutter the Texas Lottery Commission comes after a syndicate used DraftKings-owned Jackpocket, a lottery courier service, to buy enough tickets to effectively guarantee they had every combination to win the grand prize. Jackpocket has terminated its operation in Texas, and the lottery commissioner subsequently resigned.
Casino Push Stagnates
After making impressive strides in 2023, gaming companies like the Las Vegas Sands spent millions of dollars on campaign donations to back pro-gambling legislators and have spent a significant amount on advertisements espousing the benefits of gaming in the Lone Star State but have seen their efforts rebuffed during this session.
None of the gambling bills were even heard during this session, and because the legislature meets in odd years and requires voter approval in even years, the earliest change could come in 2028. However, the scandal involving the lottery didn’t help, and those new legislators who have been voted in are largely conservative and anti-gambling.
Nevertheless, the gaming companies and their lobbyists appear to be in it for the long haul and are undeterred by this most recent setback.
Andy Abboud, a senior vice president at Sands, said in a prepared statement, “We’re happy with the progress we made this session. We have always said this will be a marathon, and we still strongly believe that destination resorts coming to Texas is inevitable, which is why we’re not going anywhere.”
The Texas Sports Betting Alliance, the lobbying group that includes the state’s professional teams in favor of mobile sports wagering, is not giving up its efforts in Texas either.
“We’re disappointed Texans didn’t get the chance to vote to legalize sports betting this year, but we know it’s a marathon, not a sprint,” said Karina Kling, a spokesperson for the Sport Betting Alliance. “The fact is, Texans are already doing this, but through illegal, offshore operators. We’ll keep working to educate people on how legalizing sports betting in Texas would protect consumers and bring financial benefits to the state.”
Republican political consultant Vinny Minchillo understands why the pro-gaming groups are not folding up their tents in Texas because they know that they have the support of the people.
“If gambling got on the ballot as a constitutional amendment, it passes with no problem,” Minchillo said.
