Senator Rodney Ellis, D-Houston, Senator John Carona, R-Dallas, and representatives of the Texas Gaming Association had a press conference this afternoon to support legislation that could lead to the building of 12 Vegas-style casinos in Texas -- and re-open Speaking Rock Casino in El Paso.
“Texans are already voting with their feet and going out of state (to gamble),” said Ellis.
"Gaming is already here. Its about regulation and revenue," said Carona, arguing that the bill would mean billions of new dollars put toward college scholarships and transportation projects.
While much of the talk at the press conference was about co-operation among Texas gaming interests - resorts, tribes and racetracks in particular - unity remains illusive.
Pro-gaming groups have jockeyed for position over the last two days, using different polls that show support for different ways of expanding gaming in Texas.
The gaming industry is split between those in favor of limiting gaming to video slot machines with substantial prizes at existing racetracks - so called "racinos" - and those who favor "destination resort casinos" - big Vegas-style developments complete with malls and restaurants.
On Monday, Texans for Economic Development, (TED) essentially the pro-"racino" wing of Texas gaming interests, touted the results of a poll conducted by Baselice and Associates saying Texans back the expansion of gambling in the state and want to see it on the ballot in 2010.
The research, which TED paid for, was based on a telephone survey of a random sample of 1,006 registered voters. It found that 63 percent were in favor of slot machine gaming at existing racetracks and Indian gaming enterprises. That percentage rose to 80 percent when participants were informed either that Texans already spend over $2 billion on gaming in bordering states, or that gaming expansion could lead to 53,000 new jobs.
"Our breadth of support cuts across all lines of gender, race and party," said Tommy Azapardi, Executive Director of Texans for Economic Development in a statement. "In these economic times, voters are very motivated by the 53,000 new jobs and the billion dollars a year for state coffers racinos could generate for the state."
TED's strategy seems clear. After donating more than $800,000 to politicians in 2008 (including a $1,000 donation to each El Paso lawmaker since November), they are simultaneously mounting a legislative, electoral and PR campaign to expand gaming in Texas.
TGA, though seeking a different type of gaming expansion in Texas, have exactly the same strategy in mind – file the bills, put out the research, put the issue on the ballot.
So far, bills have been - or will be - filed in support of all major Texas gaming interests. For example, state Rep. Norma Chavez, D-El Paso, last week filed a proposal to provide a “defense to prosecution” against bingo or poker on Indian tribal lands, such as that belonging to the Tigua del Sur Pueblo in East El Paso.
The bill has already encountered strong opposition from groups like Texans Against Gambling.
"This bill basically gives tribes a ‘get out of jail free’ card for pursuing illegal gambling businesses that have twice been shuttered for boldly breaking Texas law. It sets a very dangerous precedent of allowing exceptions to penalties for illegal activity,” says Weston Ware, legislative director for Texans Against Gambling.
But because Gov. Rick Perry is likely to veto any bill that expands gaming in Texas, other bills are being filed that would put the issue of gaming on the ballot in 2010.
“Because Gov. Perry has threatened to veto the expansion of gambling, a constitutional amendment is an alternative option (to) ensure the Tiguas can re-open,” said Chavez.
A bill that puts a constitutional amendment on the ballot cannot be vetoed by the governor and would represent a direct appeal to the voters over the heads of politicians.
By releasing the Baselice research on Monday, which claims that a majority of Texans favor racinos, and even more (82 percent ) want to see the issue of gaming on the ballot, TED have begun laying the public relations ground work needed for the introduction of a bill that would see the issue of racinos put to the people in 2010.
The problem is not everyone wants to limit the expansion of gaming to racinos.
TGA, which favors “destination resort casinos” over video slot machines at racetracks, responded to TED's Monday press release by touting the findings of there own commissioned research - which says Texans actually prefer resorts over racinos.
Interestingly, the TGA poll was conducted in December eight weeks ahead of today's press conference, whereas the TED commissioned research was conducted the week before last and released Monday.
Furthermore, TGA, had originally planned to wait until today in order to release the study's results at Ellis and Carona's press conference. But they took umbrage at TED's perceived gate-crashing tactics and released parts of their poll early.
“We wanted to get our information out. If anyone is talking about gaming we want to get our options out,” said TGA spokesperson Duane Galligher.
The obvious question is: why the rush?
According to one insider, racetrack owners see big resorts as unwanted competition if and when gaming is expanded in Texas. TED is primarily constituted of people in the horse racing industry and the horse industry as a whole. By seeking a constitutional amendment that would only authorize slots on Indian lands and racetracks, resorts (which don't need horses to flip cards) would continue to be prohibited in Texas, leaving racetracks with a virtual monopoly of in-state gaming customers.
Thus, one might assume that TED, by rush-releasing the results of their own swiftly conducted study, were attempting to 'steal the thunder' of the resort interests - represented by TGA, Ellis and Carona today.
This may indeed be a wise move on TED's part . TGA commissioned polls have a habit of bashing racinos and lauding resorts.
For example, in 2006, TGA commissioned Baselice and Associates themselves. That poll suggested more Texans have a negative view of slot machines at racetracks than a positive one. (45 percent compared to 35 percent.) It also said that three times as many Texans preferred resorts to racinos.
Furthermore, TGA's latest study, conducted by Pollster Charles Wilson of Wilson Research Strategies, refutes the claims made by that of the latest TED study.
When asked, 53 percent of participants were against a constitutional amendment that would allow “video lottery terminals, which operate like slot machines, at existing horse and greyhound racetracks.” But the same sample was 63 percent in favor of a constitutional amendment that would authorize a limited number of resort style casinos.
“It is clear that a majority of Texans support expanding gaming options in our state from all three of these surveys (two from TGA, one from TED). It is also clear that when given a choice, voters strongly prefer a proposal allowing destination resort casinos,” said a TGA press release yesterday, a point re-iterated by Charles Wilson today who spoke at the Ellis/Carona press conference.
One might also argue that the new TGA-commissioned Wilson study is designed to produce results that favor resorts over racinos.
For example, in the Wilson study, when the question is posed about resort casinos, participants are first informed that, their construction, "would lead to approximately $4 billion in revenue for the state" which would be put toward "college tuition … transportation improvements and road construction projects…” However, when asked about slot machines at race tracks, participants are only informed that, “Some of the money would be dedicated to increasing purses for Texas racehorses and to provide financial support to non-racing horse organizations and events.”
How will this feud, simmering between gaming interests in Texas, affect the Tiguas in East El Paso?
Chavez claims that the Tiguas are rubbing shoulders with both sides, making sure that they are covered either way.
“We have multiple legislative strategies. The Tiguas have been meeting with all gambling groups, the tracks, destination location, barrier islands and we solidly support any legislation that includes the specific language needed for the Tiguas to re-open Speaking Rock casino,” said Chavez yesterday adding that the Tiguas and their allies had made sure they were covered by the language in Ellis’ bill filed today, and the TED backed bill to be filed later in the week.
“This means we will support and I will actively work to pass any omnibus bills or any bill that includes the Tiguas. We will also file our own constitutional amendments as a back up,” said Chavez.
But it might not come down to the Tiguas either hedging their bets between the resorts and the racinos, or going it alone. A compromise may well be reached.
“Its very early in the process, they say it’s like making sausage of a reason,’ says Mike Lavigne, a spokesperson for TED.
Because both wings of the gaming industry are essentially pursuing the same strategy, there will be multiple points in the process where deals can be made. Any of the bills seeking gaming-related constitutional amendments could be themselves amended to include (perhaps in a more limited way) the concerns and interests of the other side.
Regardless of the twists and turns in this multi-faceted argument, it would seem that momentum is gathering behind moves to change the status quo. Both the TGA and TED polls agree that a majority of Texas want to see the issue of gaming on the ballot.
“All these polls show that Texans favor expanding gaming in their state. It should be the people of Texas who decide,” said Chavez.
If the resorts men and racino jocks can work together, divide-and-conquer tactics pursued by anti-gaming forces in previous sessions, may be harder to pull off this time around.
Chavez - like Ellis and Carona - is optimistic about gaming interests coming together during the legislative process.
“Chairman Keumpal (Chair of Licensing & Administrative Procedures, the House committee that will scrutinize the bills) is well respected by all those involved. I’m sure he will bring all the parties together and we’ll get something that generates revenue to the floor for consideration by the members,” said Chavez.
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