The Adelson family of Las Vegas bought the Dallas Mavericks in hopes of expanding their gambling empire beyond Nevada and into the state.
Now their company, casino operator Las Vegas Sands Corp., is backing a petition to legalize gambling by the Texas Destination Resorts Alliance, which was founded and funded by Sands in 2021, according to the coalition’s website.
This is not the first time Miriam Adelson and Sands have lobbied for the legalization of gambling in the U.S. Her company has spent $70.5 million on federal campaigns since 1992. Sands has previously said it would pay lobbyists up to $5.9 million in 2023.
Building a loyal group of gambling advocates is the coalition’s main goal, according to its website. The Texas Destination Resorts Alliance did not respond to multiple emailed requests for an interview. Dallas Morning News.
“Our coalition is working to garner statewide support for an amendment to the Texas Constitution to allow new luxury resort facilities to be built on our doorstep,” the coalition said. “We are also advocating for casino options at current racetracks across Texas, as well as new gambling plans on federally recognized Native American reservations.”
Unlike other states that have voter initiatives or referendums, the Texas Destination Resorts Alliance petition is merely a statement of support without legal authority. In Texas, the only way to put an amendment on the ballot is for the state legislature to propose it through a joint resolution of the Texas House and Senate.
The coalition says legalizing gambling in Texas would create thousands of temporary and full-time jobs, build state-of-the-art venues and resorts, bring economic wealth to the state and fund schools and public services.
The Texas Sports Betting Association estimates that more than $8 billion is illegally gambling in Texas annually, based on a report by Irvine, Calif.-based Eilers & Krejcik Gaming Consulting and Market Research. Eilers & Krejcik Gaming owns a venture firm that invests in various gaming platforms and companies.
Another estimate is that Texans spend about $5 billion a year in states where gambling is legal, including Louisiana, New Mexico, Oklahoma and Nevada.
Plans for legal gambling in Texas gained steam in 2018, when the U.S. Supreme Court struck down a federal ban on sports betting. Mark Cuban, a minority owner of the Dallas Mavericks, and Sands officials have said they want to build a new arena for the team that would incorporate a casino resort in downtown Dallas.
Cuban wants to keep the team in downtown Dallas, but an arena and casino resort could also be built in Irving because a company with ties to the Suns has purchased 108 acres of land near the area that was home to the Dallas Cowboys from 1971 to 2008.
About 75 percent of Texans already support legalizing gambling, according to a University of Houston poll. The Texas Destination Resorts Alliance petition is part of a larger fight that will play out over the coming months and years to push legal gambling across the finish line in Austin, said Alan Feldman, distinguished fellow at the University of Las Vegas’ International Gaming Institute.
“I think working with this coalition will help shape the debate and the objectives of legalization,” he said. “It takes a long time to pass this kind of legislation, but [Sands] “We’re already seeing robust discussions about how these resorts can be used as a predictor of other economic activity.”
Sands has previously lobbied to legalize gambling in states including New York and New Jersey, but is now focusing on Texas.
According to Transparency USA, a group that collects data on political contributions, Adelson has spent more than $4 million to support state legislators such as Rep. Dade Phelan and Rep. John Kuempel, who support legalizing gambling. He also spent $1 million to support Gov. Greg Abbott’s 2022 reelection campaign.
The company has 104 lobbyists in Texas, up from 76 in 2021, according to data from the Texas Ethics Commission.
Kuempel was the sponsor of House Bill 2843, a 2023 bill that would authorize casino gambling in Texas and allow the state to begin regulating the casino industry by making companies pay licensing fees. Because it is a constitutional amendment, it would require voter approval.
Historically, efforts to legalize gambling have made little progress. Recently, the Texas House of Representatives rejected a bill from Rep. Charlie Geren that would have allowed casinos to operate in the state, and the Texas Senate rejected an online sports betting bill that narrowly passed the House last session.
Kuempel postponed the vote on House Bill 2843 until Nov. 29, 2023, six months after the end of the legislative session, essentially killing the bill before it had a chance to be voted on by the House or Senate.
Some, like Dallas City Councilman Chad West, believe gambling will be legalized in Texas, but others think the effort is still a long way off. Former Rep. Will Hartnett is a longtime opponent of gambling and said he doesn’t think the current effort is enough to make it beneficial for Texas.
Under HB 2843, Texas casino license applicants would have to pay up to $2.5 million depending on their location. In other states, such as Massachusetts, the initial license fee is about $85 million, meaning Texas could lose out on millions of dollars in additional revenue, Hartnett said.
“this [HB 2843] “This is the worst constitutional amendment I’ve seen in 50 years. It essentially gives billions of dollars worth of casino licenses to handpicked insiders on the cheap,” Hartnett said. “I think this is a terrible way to raise money in general, but it’s particularly bad because it scams state coffers out of money that could be used to help people.”
Kuempel and sponsors of HB 2843, including Reps. Toni Rose, Yvonne Davis and J.M. Lozano, did not respond to multiple emailed requests for interviews. news.
Feldman said the benefits a casino could bring to the state could be enormous.
“I think this will be a really strong economic driver. People might worry and say it’s going to bring about destruction and all kinds of problems, but I don’t think that’s the case,” he said. “Sometimes I think Dallas is overachieving as a destination, but legalization could help propel Dallas to the next level as a big city and bring a lot of benefits.”
