Expanding gambling throughout Texas may be the hottest issue this session that never reaches the floor.
The session may end with no progress made but inside the Capitol the wheels are turning. Gambling interests from casinos to racetracks to Indian tribes to horse & dog owners are lobbying legislators aggressively and expensively.
At least 21 lobbyists are being paid greater than $50000 this session to push for legislation that opens up various forms of gambling in the state. Nearly half of these are paid in excess of $100000. Also records from the Texas Ethics Commission show more than 250 lobbyists have registered an interest in gambling legislation.
But are lawmakers convinced? Dont bet on it.
Public relations consultant Chuck McDonald who has dealt with gambling legislation in the past believes lawmakers are skeptical of new gambling legislation as both racetracks and the Texas lottery have failed to produce anywhere near the levels of new income promised 22 years ago.
Any gambling proposal is a political bomb waiting to blow up in the face of whoever passes it said McDonald.
On top of lawmaker skeptism stands other obstacles to passing gambling legislation. House Speaker Joe Straus (R-San Antonio) whose family has deep ties to horse racing tracks has said he will stay out of the gambling debate. Governor Rick Perry said he opposes any expansion to gambling and Lt. Governor Dewhurst has said the same.
Furthermore passing gambling legislation will take a Constitutional amendment which requires two-thirds support from both the House and the Senate and then a vote on election day.
But money is tight right now and legislators are considering the new revenue that will come in with loosened gambling restrictions.
Rep. Jim Pitts (R-Waxahachie) chairs the House Appropriations Committee and has said he welcomes action that would create tax revenue from gambling halls. Pitts has expressed concern about the budget shortfall in 2011 which has been estimated to be $10 billion or more.
Increased state revenue from new gambling taxes much of which is promised to help fund education may be the biggest draw for legislators. However not everyone agrees that the increased revenue will have a net positive effect on the Texas economy.
During the Voter ID debate in the Senate earlier this session Senators routinely cited the example of Illinois and the success of their Voter ID legislation. Illinois lawmakers are also scrutinizing their gambling legislation with some warning that the profits may come at a price.
With unemployment in Illinois now at 9.1 percent and the state facing an estimated $12.4 billion budget deficit the easiest way to fix the Illinois economy is to ban gambling statewide says University of Illinois business and public policy professor John Warren Kindt.
Kindt was quoted in the Daily Herald as saying If youre dumping money into these slot machines youre not spending money on cars refrigerators computers education. In studies it shows that around these slot machine areas we have people spending even 10 percent less on food.
The lost consumer spending is enormous. The lost sales tax revenue - enormous. Were losing. And when you start losing the economy you want to go back to basics you dont want to keep going down the wrong path
Kindt said.
By Kindts estimation for every dollar the state brings in through gambling and lottery taxes the state pays $3 in additional costs due to higher crime broken families and increased poverty.
With so much lobbying pressure put on lawmakers and promises of new education dollars and smaller budget gaps will Texas lawmakers gamble on gambling?
The answer is anyones guess but one thing remains clear: gambling interests are out in force this session and whatever the outcome they have made their presence felt.
Expanding gambling throughout Texas may be the hottest issue this session that never reaches the floor.
The session may end with no progress made but inside the Capitol the wheels are turning. Gambling interests from casinos to racetracks to Indian tribes to horse & dog owners are lobbying legislators aggressively and expensively.
At least 21 lobbyists are being paid greater than $50000 this session to push for legislation that opens up various forms of gambling in the state. Nearly half of these are paid in excess of $100000. Also records from the Texas Ethics Commission show more than 250 lobbyists have registered an interest in gambling legislation.
But are lawmakers convinced? Dont bet on it.
Public relations consultant Chuck McDonald who has dealt with gambling legislation in the past believes lawmakers are skeptical of new gambling legislation as both racetracks and the Texas lottery have failed to produce anywhere near the levels of new income promised 22 years ago.
Any gambling proposal is a political bomb waiting to blow up in the face of whoever passes it said McDonald.
On top of lawmaker skeptism stands other obstacles to passing gambling legislation. House Speaker Joe Straus (R-San Antonio) whose family has deep ties to horse racing tracks has said he will stay out of the gambling debate. Governor Rick Perry said he opposes any expansion to gambling and Lt. Governor Dewhurst has said the same.
Furthermore passing gambling legislation will take a Constitutional amendment which requires two-thirds support from both the House and the Senate and then a vote on election day.
But money is tight right now and legislators are considering the new revenue that will come in with loosened gambling restrictions.
Rep. Jim Pitts (R-Waxahachie) chairs the House Appropriations Committee and has said he welcomes action that would create tax revenue from gambling halls. Pitts has expressed concern about the budget shortfall in 2011 which has been estimated to be $10 billion or more.
Increased state revenue from new gambling taxes much of which is promised to help fund education may be the biggest draw for legislators. However not everyone agrees that the increased revenue will have a net positive effect on the Texas economy.
During the Voter ID debate in the Senate earlier this session Senators routinely cited the example of Illinois and the success of their Voter ID legislation. Illinois lawmakers are also scrutinizing their gambling legislation with some warning that the profits may come at a price.
With unemployment in Illinois now at 9.1 percent and the state facing an estimated $12.4 billion budget deficit the easiest way to fix the Illinois economy is to ban gambling statewide says University of Illinois business and public policy professor John Warren Kindt.
Kindt was quoted in the Daily Herald as saying If youre dumping money into these slot machines youre not spending money on cars refrigerators computers education. In studies it shows that around these slot machine areas we have people spending even 10 percent less on food.
The lost consumer spending is enormous. The lost sales tax revenue - enormous. Were losing. And when you start losing the economy you want to go back to basics you dont want to keep going down the wrong path
Kindt said.
By Kindts estimation for every dollar the state brings in through gambling and lottery taxes the state pays $3 in additional costs due to higher crime broken families and increased poverty.
With so much lobbying pressure put on lawmakers and promises of new education dollars and smaller budget gaps will Texas lawmakers gamble on gambling?
The answer is anyones guess but one thing remains clear: gambling interests are out in force this session and whatever the outcome they have made their presence felt.
