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The 2024 Global Gaming Expo is happening this week in Las Vegas. A lot of news is coming out of the conference, which brings together many influential people in the legalized betting industry for the U.S.
Of course, the topic of legalization came up for non-regulated states. The biggest domino of those? Texas. The Lone Star state has zero forms of betting allowed. No legal sports betting in Texas and no casino gambling either.
However, a panel at the expo was optimistic about Texas betting chances in the coming year. Extremely optimistic actually. Let’s dig into what was said, and more importantly, the reasons why it was said.
Lobbyist Says Texas Has Higher Than 50% Of Legalizing Next Year
The panel leading the discussion on Texas included the following three heads of government relations (lobbyists in fancier words): Andy Abboud of Las Vegas Sands (LVS), Rick Limardo of MGM Resorts, and Caesar Fernandez of FanDuel. As you can see, all three are part of massive companies that have insight into the issue. The topic was moderated by David Rittvo, principal at Tailored Hospitality Advisors.
Of the three, Abboud was the most optimistic. He repeatedly said legalization in Texas was “inevitable” — his words, not ours. When asked about the probability for legalizing next year, he said “greater than 50 percent.” Boom, that’s your bombshell headline.
Of course, Abboud is representing the casino that’s leading the legalization efforts. Miriam Adelson, the new owner of the Dallas Mavericks and the head of Sands (after her husband passed away), has made her intentions an open secret in the state. Not only does Adelson want a new area for the Mavs, but she also wants a Sands casino to go alongside it wherever it’s built.
For what it’s worth, the other panelists weren’t as high as Abboud on something passing soon. Limardo was quoted as saying, “we have to show this is viable in the senate and get the votes there.” He later said “we’ve been told directly we don’t have the votes”.
The other panelist, Fernandez, mentioned that most voters in the state want the chance to vote on sports betting. He also predicted the market could generate $250 million in yearly revenue and bring in $1 billion in tax revenue within five years.
Texas Bettors Are Betting Anyway
During the panel, it was brought up over and over again: Texans are betting despite the legal roadblocks, and the state is missing out completely on the potential tax revenues.
For instance, Fernandez mentioned a report from Eilers & Krejcik Gaming that says the offshore sports betting market in Texas is worth $7 billion annually. E&KG are leaders in data research so that report carries a lot of weight. And yes, that’s no typo, it’s seven billion being bet on international sportsbooks that don’t have to pay back the state a penny in taxes.
Not only that, but bettors even flee the state entirely to get their gambling fix. Texas is surrounded by Oklahoma and Louisiana, both of which have well-established gaming industries. These two states have benefited from Texas’ rejection of gambling. Oklahoma has land-based casinos (no legal sports betting in Oklahoma yet), while Louisiana offers both physical casinos and legal online sports betting.
“Voters see that money leaving the state and they’d like to see that return,” Abboud said.
The panelists kept stressing that the issue should be brought to voters. They believe “the people” have the right to decide on their own.
Path To Legalization Remains Rocky
So why has Texas been so resistant to a legal betting industry? One answer: the Senate Republicans have staunchly opposed it. Here’s how betting can enter the Lone Star State. In 2023, bills that would have legalized betting cleared the House for the first time but were promptly killed in the Senate.
The chief architect of this opposition is Lieutenant-Governor Dan Patrick. Texas is rather unique in its power dynamics. Patrick controls the Senate. So much so that he assigns all legislation to committees of his direct choosing. Patrick is the gatekeeper essentially and he’s extremely against betting of any kind.
The expo panelists offered two ways to get past Patrick. The first is to get enough support that he’s forced to call for a vote. “Once we swing them, (Patrick) will call for a vote,” Abboud quipped. The “them” he’s referring to are key stakeholders, as in other Senate Republicans.
Another path past Patrick is to get him to switch jobs entirely. That’s plausible if Donald Trump wins the 2024 presidential election in November. Patrick and Trump see eye to eye, which means that could open up a cabinet position for Texas’ lieutenant governor.
Just our two cents, but we see the second option being the most likely to get rid of Patrick. At his age (74 years old), you don’t really change your mind on things anymore, and he’s clearly anti-betting. Thus, the best solution is to get someone to replace him that is pro-betting.
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