What Impact Will Casinos in Texas Have on Las Vegas?

I know it is years away. But with the heavy hitters backing it, casinos and gaming are bound to become legal in Texas. I would bet the casino in Dallas will be spectacular and I would also bet there will be only two zeros on the roulette wheel and blackjack will pay 3 to 2. So will this, in your opinion, have a significant impact on Vegas? Hard to say I know, but could it end the gouge on the Strip? (Will you start a TGA (Texas Gaming Advisor) newsletter?

We believe you're right: Texas appears to us to be years away from gambling, not least due to the slow-moving political machinery in the Lone Star State.

At present, “the Lege,” as political columnist Molly Ivins styled Texas lawmakers, has been resistant to casino legalization. Despite heavy GOP contributions from the Adelsons, both the late Sheldon and his widow Miriam, politicians on the Republican side of the aisle have persistently ignored their casino ambitions. More support can be counted on from Democrats, but neither the state GOP nor Adelson wants to reach out in that direction.

As for the "heavy hitters," Las Vegas Sands and now, thanks to its relationship with Dallas Mavericks' owner and billionaire, Mark Cuban are the only ones in the ballgame at present. Other casino corporations are hanging back and while Texas’ own Tilman Fertitta has lent lip service to the cause, he’s been leading from the rear. No wonder: He’s heavily invested in nearby Lake Charles, Louisiana. Large commitments to Louisiana may also be staying the hands of Caesars Entertainment, Penn Entertainment, and Boyd Gaming, all interested parties.

Where would casinos go in Texas? One prevalent view attempts to achieve consensus by offering to sprinkle five megaresorts across the state. However, safety may be in numbers. Las Vegas, Reno, and Atlantic City succeeded as gaming destinations because they offered clusters of casinos in relatively isolated locations. Dallas is an obvious casino location (with Mark Cuban wanting a new stadium for the Mavs surrounded by an entertainment-casino district) and Houston has historical claims in that department.

What would the impact on Las Vegas be? Probably slight.

Figures for Texas’ contribution to Sin City aren’t available, though we have noted over the years the number of Texas license plates around town. However, it's difficult to accept at face value Sheldon Adelson’s claim that the Lone Star State is a $10-billion-a-year market. That would make it almost as big as Nevada in gambling revenue, in a state with limited casino penetration (two tribal gambling houses at present) and vast distances to cover if you want to have a flutter. Also, if Texas were full of people just itching to gamble, why are we not seeing bigger numbers out of Lake Charles and Shreveport, as well as Oklahoma’s myriad tribal casinos?

Would Las Vegas Strip casinos be forced to end their price-gouging ways for fear of Texan competition? Toe put it bluntly, not bloody likely. The success of tribal casinos in California hasn’t done it, nor has the proliferation of gaming across the country. A handful of resorts in Texas aren’t going to change that.

And we'll take your bet on double-zero roulette and 3-2 blackjack. How about $50,000? Las Vegas Sands, after all, introduced triple-zero at the Venetian. And 6-5 tables are now the norm on the Strip, whence any major casinos in Texas will come.

Finally, would or will we publish a Texas Gaming Advisor? Nah. Las Vegas is enough for us.

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David Dec-16-2023

Effect on Louisiana gaming

Having worked the casino market in Louisiana (mid-2000's) in an executive role, I can assure you that Texas is full of people itching to gamble...IIRC, about 80% of our market in Shreveport came from Texas (mostly Dallas).  Same for the market down in Lake Charles, their customers are from Houston.  I would imagine Penn, Boyd, Bally's, etc wouldn't be exactly thrilled to see Texas open up...most likely, those casinos would shut down.  The Indian casinos in Oklahoma had a direct effect on our revenues as they opened up.

That being said, there has been an ongoing effort to obtain gaming legislation in Texas since the 90's, and it's fallen on deaf ears in the legislature.  It comes up every year, but never goes anywhere.  I believe that eventually, they will get gaming there, as the state will eventually stop ignoring the potential tax revenues.  That will doom a number of casinos in western Louisiana.

But will it affect Nevada?  no, it will act as another feeder market for LV.

Thomas Dikens Dec-16-2023

good answer

Good answer,  My full thought on 2 zero & 3/2 type issues is that at least it would start that way and then move to the gouge. (I will have to pass on the bet.)  Depending on the location of the Dallas effort, Winstar will at least offer some local competition, not to mention Choctaw. Anyway, it will be an interesting little story for us Texas gamers to follow.  In the meantime, I will be at the Aria poker room and I have to, based on your reviews, checkoff the Downtown Grand next trip.  Thanks, Tom

Thomas Dikens Dec-16-2023

LV nick name

David, I use text-to-speech to listen to comments.  The Mac read your "LV" abbreviation  out as "fifty-five". Confused me for a moment and then,  yea, Roman Numerals. Perhaps we have a new nickname for Vegas, Fifty-Fie.  (eighty-sixed in fifty-five is bound to come).  If it did catch on, at least the origin story will be documented.  I guess you and I can share credit with the Mac and LVA. Smiles, Tom

John Hearn Dec-16-2023

86'd in 55 'til 4:00

Tom, I grant you and LVA exclusive rights to my new song for the band Chicago.

Kevin Lewis Dec-16-2023

Yee-bloody-haw

Any attempt to start a Texas casino industry will fall on its ass because:
1. At least as far as the more populated eastern half of the state is concerned, there are plenty of places in nearby OK and LA for people to scratch their casino itch.
2. It takes a LOT of bribe money to get the Texas legislature to do anything, and no potential casino operator has been willing.
3. As it has all too sadly been proved that Texas hates women, any potential casino would have to have all make dealers, waiters, clerks, etc. as women engage in a mass exodus from the state in disgust.

So Texas should stick to one of the few things is actually does well--BBQ,

Sandra Ritter Dec-16-2023

Really?

Why does this seem familiar? Did you run it already, or was it a Tomorrow's Question from a while ago but just posted now, or a comment along the way? Anyway, you're assuming that folks can't wait for gambling in Texas and will run there as soon as it happens. My flights only go to Las Vegas and don't stop along the way. Texas will never see me. It's not a state I would ever want to step foot in.

Robert Dec-16-2023

Binion

Texas has a long history of regressing rather than evolving. Even Benny high-tailed it out of there!

lloyd crimm Dec-16-2023

Winstar and Choctaw Durant

Winstar (8400 machines) and Choctaw Durant (7500 machines) in southern Oklahoma  are the largest casinos in the world. They sit about 90 miles north of Dallas/Fort Worth which is their target market.

Question of the Day - 16 December 2023

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