STATE NEWS
Gaming bid may be stalled
10:58 AM CST on Saturday, February 10, 2007
AUSTIN – The gambling lobby rode confidently into Austin last month, talking up legislation they said would unite casino developers, racetrack operators and Indian reservations.
But just weeks into the session, the odds might have grown against an expansion of gaming in Texas.
The momentum for an alliance of major pro-gambling forces seems to have stalled, and a Dallas Morning News analysis of state lobbying reports shows gaming interests are on track to hire fewer lobbyists and spend millions of dollars less than last session.
"They've been at it so long and spent so much money already," said Sen. Rodney Ellis, D-Houston, a strong supporter of allowing casino-style gambling in Texas. "I think they're waiting for some signal. I think you'll see a lot more pouring in if they see a clearer opening."
Opponents of gambling say the lack of a state budget crisis – lawmakers are sitting on a huge surplus this time – will make casinos a hard sell.
"I don't see how you get [gaming] without a budget crisis, particularly if a coalition is falling apart," said Sen. Bob Deuell, R-Greenville. "That would make me think they're not really going to push it."
The casino advocates deny that there's been any drop-off in the effort, and they say they're close to rolling out a bill that would bring in all kinds of new gambling: up to 12 resort-style casinos in Texas, slot machines at racetracks and legalized tribal gaming, all of which would raise revenue for a college tuition fund.
They say their strategy has changed from lobbying members to informing them.
Lobbying contracts by casino, racetrack, lottery and Indian reservations are shaping up to be far below what they were in the last legislative session:
Number of contracts
2005: 65
2007: 49
Value of contracts (range)
2005: $2.2 million-$4.3 million
2007: $1.5 million-$2.8 million
"We do not believe that members of the Legislature are going to determine how they're going to vote based on what lobbyist visits with them on it," said Chris Shields, a lobbyist for the Texas Gaming Association. "We have chosen to invest the bulk of our resources in information development. ... It's a different strategy."
But traditionally, lobby money speaks louder than information. The News' analysis of state lobbying contracts indicates gambling interests intend to use a third fewer lobbyists this session than in 2005, when lobbying contracts topped out at $5 million. This year, contracts aren't expected to break $3 million.
The two Texas Indian reservations without gaming have scaled back their lobbying contracts – the result, tribal leaders say, of dwindling assets. The fortunes of gambling interests also could be threatened by Gov. Rick Perry's proposal to privatize the Texas lottery.
The lottery could be less valuable to private companies if they'd have to compete with new forms of gambling.
Of all the possible bills this session, most observers believe Indian reservations have the best shot at an expansion of gambling.
Of the three federally recognized tribes in Texas, only the Kickapoo Traditional Tribe of Texas has federal tribal status that allows gambling. The Tigua and the Alabama-Coushatta have restrictive state charters that don't allow it.
State Rep. Norma Chavez, D-El Paso, has filed legislation to open Indian reservation gaming. And many opponents of statewide gambling say they're starting to see the economic benefit of allowing gaming on reservations.
But the two tribes that desperately want gaming rights say they've run out funds to pay for lobbyists.
Arturo Sinclair, governor of the Tiguas, said the tribe can't justify spending much on lobbying when the reservation's only school bus is sitting idle in a parking lot.
"We are in dire straits with regards to the financial situation of the tribe, and we've got to look at efficiency as far as how we spend our money," he said.
Meanwhile, a skirmish between two racetrack developers over a license in the Laredo area has gotten fiery, with one applicant challenging another over how many licenses a track operator can hold simultaneously.
The debate, which has spread to the Texas Racing Commission and the Texas attorney general, has been a major distraction at a time when racetrack operators could be fighting together for slot machines, industry officials say.
Texans for Economic Development, which lobbies for the racetracks, is trying to set aside its divisions to promote slot machines at racetracks, lobbyists said.
But the organization still isn't throwing itself behind the omnibus gambling bill. Right now, they say, slot machines at racetracks are one of the few things they can agree on.
"We're not against a full gambling bill," said Reggie Bashur, a top lobbyist for the racetrack industry. "But the focus is on video lottery terminals at racetracks."
Bill Stinson, a casino gambling lobbyist working with an organization called Let The Voters Decide, said infighting in the racetrack industry makes it hard to build an alliance with it.
He and other proponents of bringing all types of gaming to Texas are speaking inclusively, anyway.
"We hope they'll join with us," Stinson said, "but if they don't, we're going to still include them and move forward."
Staff writer Amy Rosen contributed to this report.
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