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Legislation Seeks Referendum on Casinos

By J. Lyn Carl, GalleryWatch.com

Austin, TX –

"People in Texas ought to not subsidize Louisiana and Nevada," said Sen. Rodney Ellis (D-Houston) today as he introduced SJR 18, the Texas Economic Development and Job Creation Act that will let the voters in Texas decide whether to allow casino gambling in the state.

Ellis, who said he is not a proponent of gambling, said the people of Texas have been called upon in the past to decide whether they would have a state lottery, and whether they would allow carrying of concealed handguns. "After years of gridlock," he said, "it is time once again to go to the voters of Texas."

The Houston Democrat said casino gambling in Texas would have a significant economic impact on the state, with estimates that some 250,000 additional jobs would be created with an economic impact of $584.6 million to the state over a three-year period. "It just makes good sense," said Ellis, who decried the fact that Texans who cross the state border to gamble in other states are boosting the economy more in those states "than we do at home."

People in Texas are subsidizing casino gambling in Nevada and Louisiana, said Ellis, noting that if casino gambling were legalized in Texas, it would "shut down gaming in Louisiana."

Although he said he does not gamble, Ellis said his legislation would provide Texans an opportunity to decide the issue. "I like casinos for the economic impact," he said, and for the big name entertainment and shows they bring to cities. "I want that money in Texas."

Highlighting the provisions of his legislation, Ellis said it calls for a local option election in each affected county and added that no license would be approved without such a local election. The legislation also would create a Texas Gaming Commission to administer the law, with a commission membership of five. The governor, lieutenant governor, House Speaker, attorney general and state comptroller would each appoint one member.

There would be 12 casino project licenses granted - seven in urban areas, two on islands in the Gulf of Mexico and three in locations determined by the commission that will help achieve targeted economic development or jobs.

The licensees must meet certain economic development qualifications, said Ellis, with a goal of $400,000 for urban facilities, $200,000 for island facilities and $150,000 for additional projects.

"I want the big, attractive, well-funded operations in Texas," said Ellis, "not the fly-by-night operators associated with the unseemly aspects of gambling. I want to do as much as we can to shut down gaming in Louisiana and be competitive with gaming in Nevada."

House sponsor Rep. Charlie Geren (R-Fort Worth) said it is time to let the people of Texas decide this issue. "Every time we get in a budget crunch, gambling comes up," he said. "I want to get this behind us. Let the people decide." He said if the people of Texas then vote not to allow casino gambling, "Let's take it off the table and quit talking about it."

Geren said there will be changes to the legislation to include protections so that no local tax dollars and no tax abatements are tied up in the casinos. He said there will be a prohibition against tax abatements, and no use of a sports authority designation to get around paying property taxes. He said the casinos will pay their portion of property, school and gaming taxes, adding that they would also bring in out-of-state residents who will spend their money on hotels, restaurants, rental cars and in cultural districts in Texas.

The Fort Worth Republican said people from outside Texas will come to the state to spend their money in a "first class" casino. "This is not two doublewides pushed together and slot machines in the corner," said Geren. "This is about real casino gambling in the state of Texas."

Geren said members of the legislature who support the joint resolution won't need to "look for cover" among their constituents. He said members should vote their conscience and vote their districts. "If they (voters) vote it down, we take gambling off the table," he said. Both Geren and Ellis said there are some members of the legislature who are likely to vote for the joint resolution that will give voters the opportunity to decide the issue but then they will work against it when it comes to a public vote.

"I favor giving voters in Texas the opportunity to decide," said Ellis. He said racetrack owners, of course, want to install video lottery terminals in their facilities "because they're already in the game."

"If we're going to expand gaming in Texas, let's be up-front about it. I want a competitive process where everybody has an opportunity."

As the state continues to face budget woes and more hands are outstretched for state tax dollars, "the more attractive this option is going to become," said Ellis. "As the clock continues to click, this action as a revenue generator will become more attractive."