TRIBAL GAMING IN TEXAS
line should Texas legalize Class III gaming and sports betting. Commercial gaming and sports betting operators are ready to tap into the Texas market, but they are not the only ones that can benefit should the 89th legislative session finally legalize Class III gaming, including sports betting. The Sports Betting Alliance, BetMGM, Caesar’s, Boyd Gaming, and Las Vegas Sands are examples of commercial casino and sports betting operators that are located outside of Texas. They too are ready for Texas and have the infrastructure to immediately join the gaming industry once gaming is legalized. The Las Vegas Sands has acquired prime real estate near Dallas, Texas, betting that the 89th legislative session could legalize Class III gaming but limit it to locations tagged “destination resorts”. The Las Vegas Sands has spent upwards of US$12 million dollars in lobbying efforts during the past two legislative sessions, and the company is not alone. 4 The message of these companies is clear, Texas will legalize sports betting and Class III gaming, and we want to be ahead of the curve when it does. The message is being received by many, including the Choctaw Nation. The Choctaw Nation The Choctaw Nation – representing tribal interests – is also making the necessary preparations to become a major player in Texas gaming. If the upcoming 89th legislative session legalizes Class 3 gaming, including sports betting, at the state level, then the federally recognized Indian tribes will also be able to offer the same on tribal lands, subject to IGRA and compact negotiations with the state of Texas. There are currently three federally recognized tribes in Texas that have built and operate casinos. 5 The Kickapoo Traditional tribe operates the Kickapoo Lucky Eagle Casino, the Tigua Indians tribe operates the Speaking Rock Casino, and Alabama-Coushatta tribe operates the Naskila casino. The potential legalization of Class III gaming will certainly expand the current landscape of Texas casinos, both commercially and in tribes. However, the potential legalization of sports betting in Texas is creating an interest in the neighboring Choctaw Nation tribe of Oklahoma.
The Choctaw Nation is encouraged by claims that Texans spend an estimated US$6 billion annually on illegal and unregulated sports betting activities. 6 Additionally, Eilers & Krejcik Gaming predict that once Texas legalizes sports betting and establishes a legal framework for it, the state could generate more than US$360 million in direct tax revenue each year. Other reports state that if the 2025 legislative session legalizes sports betting, Texas could become the largest market in the United States with up to US$32 billion in annual betting. As the third largest Indian tribe in the United States, owning multiple casino establishments across Oklahoma, the Choctaw Nation is alive to the opportunity and is taking the steps to become a major commercial player in Texas. Choctaw Casinos and Resorts is the brand of the Choctaw Nation, and they have partnered with the following Texas sports team, stadiums, and events: Texas Rangers, Dallas Mavericks, Dallas Stars, Choctaw Stadium – home of the Arlington Renegades, and they will be the official partner of the Dallas Open beginning February 2025. In 2024, the Choctaw nation partnered with Kambi Group and were able to secure a turnkey sportsbook platform for both online and retail sports betting. The expertise that the Choctaw Nation has developed in gaming while operating in Oklahoma has prepared the tribe to compete for a sportsbook license should Texas legalize sports betting. One of the many casinos operated by the Choctaw tribe in Oklahoma is just 90 miles north of Dallas, Texas, and as such the Choctaw brand is readily recognizable to the many Texans who make the short trip to game at its facility. 7 The Choctaw tribe already offers Class III gaming in Oklahoma, which includes house-banked games such as blackjack, slots, etc. so will start with an operational advantage over the three tribes with casinos in Texas. These will be further disadvantaged even if the 89th legislative session legalizes Class III gaming as they will required a tribal state compact to offer Class III games on tribal lands under IGRA. By contrast the Choctaw Nation seems set to enter the Texas gaming market as a commercial operator, so will not be held back by compact negotiations. It is thus in prime position to secure a gaming license when Texas legalizes
4 https://thenevadaindependent.com/article/dallas-land-purchase-latest-texas-move-for-sands-after-adelson-purchase-of-nba-team 5 500 Nations, Inc., Texas Casinos, https://www.500nations.com/Texas_Casinos.asp#20241231 (last visited Jan. 11, 2025). 6 Kevin Keise, Sports Betting and Gaming Could Come to Texas, Texas Trend Mag. (Jan. 6, 2025), https://texastrendmag.com/2025/01/06/ sports-betting-and-gaming-could-come-to-texas/. 7 Matthew Waters, Choctaw’s Texas Sports Betting Push Extends to Dallas Open, Legal Sports Report, https://www.legalsportsreport. com/216507/choctaw-texas-sports-betting-dallas-open (last visited Jan. 11, 2025).
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IMGL MAGAZINE | MARCH 2025
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