We’ll shortly see if newly reelected Texas Gov. Greg Abbott (R) was sincere about being willing to “take a look” at casino gambling in the Lone Star State or if he was stringing Dr. Miriam Adelson along for her money. (We kinda think it was the latter.) Legislation freshly filed by state Sen. Carol Alvarado would authorize a constitutional amendment to permit sports betting and casinos. Sounds good to us … except that it would permit greyhound racing, a pestilence that has been eradicated in most of the United States.
The details are thus: As many as four “destination” resorts would be legalized in Houston and the Dallas-Fort Worth metroplex, with slots taxed at 25%, tables at 10%, intended primarily to fund education. Three racinos in Houston and/or the Metroplex would also be permitted, along with two dog tracks in those areas. Tribal gaming “in accordance with federal law” would also be mandated—after all, the state’s indigenous peoples would automatically become entitled to whatever the private sector is allowed. The details of sports betting are somewhere between sketchy and nonexistent. And the whole shebang has to pass voters. Only companies willing to invest at least $1 billion-$2 billion in the megaresorts would be welcome.
This bill (or any others of a similar nature) have between Jan. 10 and May 29 to get past the Lege, and onto Abbott’s desk. If they don’t then gaming interests are screwed until 2025. Our advice to Las Vegas Sands—not that they’ll take it—is not to repeat their 2021 fiasco by parachuting dozens of lobbyists into Austin. And don’t go it alone this time either.
Big Gaming continues to blow stale air about going smoke-free in casinos, saying the time isn’t right (and probably never will be). One refreshing exception is Iowa‘s top-performing casino, Prairie Meadows racino. Smoking has been curtailed to one area, representing 5% of the gaming floor, which “could” go smokeless at some point, according to CEO Gary Palmer. The casino experienced smokelessness during the Covid-19 pandemic and smokers dropped to 25% of the customer base during the last 20 years. Palmer thinks his new HVAC system can curb the noxious fumes but if it can’t … who knows?
Why has gambling defied macroeconomic conditions to post its best third quarter ever? The American Gaming Association has some answers. “According to AGA survey data, 52 percent of past-year casino visitors reported a household income of more than $60,000, compared to 42 percent of all Americans. In 2019, these figures were 42 percent and 38 percent respectively.” The opening of casinos in Virginia and racinos in Nebraska is also lifting the industry. The warm breeze may be cooling but 2022 is defying the odds to become the industry’s best year ever and by a country mile.
That’s it. We have to pack for a business trip, so check out CDC Gaming Reports to get your fix of industry news while we’re out of town.
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