Texas Senate Bill SJR31

Texas 2015 - 84th Regular

Caption

Proposing a constitutional amendment creating the Texas Gaming Commission, authorizing and regulating the operation of casino games and slot machines by a limited number of licensed operators and certain Indian tribes, authorizing a limited state video lottery system to be operated at horse and greyhound racetracks and on Indian tribal lands, and reducing the number of illegal gambling machines.

Impact

The establishment of the Texas Gaming Commission represents a significant shift in state policy regarding gambling. The proposed amendment allows for controlled casino operations, which supporters believe could help regulate the gambling industry more effectively while providing a legal alternative to illegal gambling. The taxation structure outlined in the bill includes a 15% tax on casino revenue and a 35% tax on slot machine income, with proceeds allocated to local governments and state programs, indicating an extensive economic strategy predicated on gaming revenue. Opponents, however, express concerns that promoting gaming could lead to increased gambling addiction and related societal issues, countering claims of economic benefits.

Summary

SJR31 proposes a constitutional amendment that creates the Texas Gaming Commission to oversee the regulation of casino games and slot machines operated by licensed entities within the state. This legislation aims to authorize a limited number of operators to run casino gaming establishments and a state-controlled video lottery system at designated locations, specifically horse and greyhound racetracks and certain tribal lands. Proponents argue this would not only boost the economy through job creation but also generate new state revenue, earmarked for property tax relief and financial assistance for higher education students, addressing pressing fiscal needs in Texas.

Contention

Key points of contention surrounding SJR31 involve the balance between economic benefits and potential negative social impacts. Critics argue that legalizing more forms of gambling could exacerbate addiction and have detrimental effects on communities. Furthermore, the bill's provisions allowing Indian tribes to operate gaming under specific agreements has sparked debates on the fairness of tax revenue distributions and local governance. There are also fears that economic gains may not be shared equitably across all Texas communities, with wealth concentrated in more affluent areas where casinos are likely to be established. The necessity of local election processes to approve new gambling operations adds an additional layer of complexity to the bill's implementation.