TRIBAL GAMING IN TEXAS
views potentially being a wall in the path of legalizing Class III gaming and sports betting, Texas is one of few states that has a budget surplus. The fact that Texas’ economy is booming from a myriad of different sources has made the argument of economic development less compelling to lawmakers. Currently, Texas authorizes charitable bingo and a state lottery – Class II games. 3 Tribes located in Texas are able to operate casinos and offer Class II games, under the jurisdiction of the Federal Indian Gaming Regulation Act (IGRA). Class III games - such as blackjack, slots, and sports betting to name a few – are not authorized under IGRA unless there is a tribal state compact in place to that effect. There is no such compact, neither does Texas permit Class III games so tribes are limited to offering Class I and Class II games, such as traditional Indian games with low cash prizes and other bingo-like games. This may all change with the upcoming 89th legislative session. The 89th Texas legislative session – how will it impact gaming? The 89th legislative session in Texas will be pivotal to the future of gaming and sports betting in the state. The 88th legislative session, wherein multiple bills were proposed to legalize casino resorts and sports betting, proved that many lawmakers are primed for this year’s legislative session to open the floodgates and usher in the era of casino gaming and sports betting in Texas. During the 88th legislative session, a bill that would have legalized Class III gaming and sports betting passed the House of Representatives but failed to gather enough votes in the Texas Senate. Recently, public support and statements made by the Texas Governor, Greg Abbot in support of legalized gaming indicate that the 89th legislative session could finally bring legalized gaming to Texas. Although traditional public policy concerns are still held by many Texans, the balance is tilting in favor of legalizing sports betting and Class III gaming due to fears of an unregulated gambling market and the potential positive economic impact that legalizing gaming can bring to Texas. There is a large and un-met appetite for casino games and sports betting in the Lone Star state – geolocation specialists GeoComply reported 1.48 million attempts to access
legal online sportsbooks in November 2024 alone – an appetite that is not being satiated by Bingo and low prize cash games. Individuals in favor of legalizing Class III gaming point to economic growth, consumer freedom, increase in tourism and hospitality, and regulating an illegal market that is only growing. The Texas Senate Joint Resolution 16 is a bill proposed for the 89th legislative session that seeks to expand gaming in Texas by legalizing casino gaming and sports betting. This bill argues that the legalization of Class III gaming will bring economic development, job growth, tax relief, funding for education, and public safety programs. As good as that may sound, legalizing sports betting and casino games is still an uphill battle. The reason for this is found in Texas’ Constitution which expressly bans Class III games and sports betting. An amendment to Texas’s Constitution would be needed – and is in fact being proposed – to be able to legalize gaming in the state. Texas Senate Joint Resolution 16 would need a two-thirds majority vote in both the Texas House of Representatives and the Texas Senate. Should the bill get the required votes, it would then be placed on the election ballot and voters would be able to have the bill adopted with a simple majority. Failure to legalize sports betting and Class III gaming during this legislative session would push back the timeline to legalize gaming until 2027, as Texas holds legislative sessions on odd numbered years only. This would be only a temporary setback as it seems inevitable that Texas will join the majority of states in legalizing sports betting and Class III gaming and many commercial gaming operators and private parties are working with this outcome in mind. Commercial and private parties Tilman Fertitta, owner of the Houston Rockets, Jerry Jones, owner of the Dallas Cowboys, Mark Cuban, owner of the Dallas Mavericks, and many other highly influential and financially successful individuals and corporations have been very vocal in their assertion that the 89th legislative session should legalize gaming and sports betting. By contributing to political campaigns and developing partnerships with established brands, many in the Texas community are levying their positions to be first in
3 Texas Policy Research, The Push for Casino Gambling and Sports Betting in Texas: Key Legislation and Debate, https://www.texaspolicyresearch. com/the-push-for-casino-gambling-and-sports-betting-in-texas-key-legislation-and-debate/ (last visited Jan. 11, 2025).
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IMGL MAGAZINE | MARCH 2025
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