Casinos face long odds from one key senator Casinos likely a bad bet this year

Key Texas senator says no to any and all gambling bills

"There is no support in my committee," said state Sen. Robert Duncan, R-Lubbock. "I just don't think there are the votes in the Senate. I don't see any chance of passage."

Duncan's opposition signals almost insurmountable odds for the expansion of gambling in Texas, despite the industry's hopes that lawmakers would look favorably upon casinos this year as a solution to the state's fiscal crisis.

So far, Lt. Gov. David Dewhurst has referred all gambling resolutions and bills filed in the Texas Senate to the State Affairs Committee, which Duncan chairs.

His spokesman, Mike Walz, said Dewhurst also likely would refer all "stand-alone" gambling bills passed by the House to Duncan's committee. He noted that the issue could be attached to other significant legislation that traditionally is heard by other committees.

Duncan's opposition creates a huge hurdle for an industry that has geared up its lobbying effort to take advantage of a desperate search by state lawmakers for new revenue sources.

On Monday, the Texas Gaming Association released a report claiming Texas would see nearly 40,000 new full-time jobs and some $9 billion to $12 billion in total capital investment if legislation is adopted approving up to eight major casinos, as well as "slots only" racetracks. The study also estimated that the state treasury would reap $1.3 billion in taxes each year.

'Strong opposition'

Duncan, however, noted that construction and development of casinos would take years, and that those revenues would not be available to assist lawmakers in the current fiscal shortfall, estimated at $15 billion to $27 billion for the next two-year budget cycle.

"A lot of us have strong opposition to using gaming to solve our budget problems," Duncan said. "We've got a lot of other pressing issues to deal with. It is not my intent to bring it up for a hearing."

Also Monday, the TGA released its poll showing overwhelming public support for voting upon the issue.

"We are going to need huge amounts of revenue for years to come," TGA Chairman Jack Pratt said. "This is a new source of revenue. We think it is an economic development bill, not a budget crisis bill."

Supporters of 2 minds

Another obstacle facing gaming interests: The two groups supporting a constitutional amendment to let voters decide whether to expand gaming are not on the same page.

Legislation backed by Texas racetrack operators proposes installing video-lottery terminals at 13 state racetracks. The legislation makes no mention of allowing Las Vegas-style casino gaming in Texas.

Mike Lavigne, spokesman for Win for Texas, a group that includes racetracks, says TGA won't support such a proposal because gamblers' dollars would stay in Texas instead of migrating to Vegas - where Las Vegas Sands Corp., which is represented by TGA, owns three properties.

"They are not trying to pass a bill - they're trying to kill our bill," Lavigne said. "They don't want to see us do it because you see how much money goes to Vegas every year" from Texas.

'The state needs money'

Win for Texas on Monday released its own economic-impact study that showed slots machines would produce $3.1 billion in annual revenue a year. About $1 billion of that would fill state coffers.

Racetrack operators say that as lawmakers look for ways to soften budget cuts, they will become more amenable to the idea of expanding gaming.

"The state needs money," said Bryan Brown, CEO of Retama Park in Selma, near San Antonio. "And tax increases are not on the table."

patti.hart@chron.com

pdanner@express-news.net