Texas 2025 - 89th Regular

Texas Senate Bill SJR16 Compare Versions

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11 89R5646 BEE-F
22 By: Alvarado S.J.R. No. 16
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77 A JOINT RESOLUTION
88 proposing a constitutional amendment to foster economic
99 development and job growth, provide tax relief and funding for
1010 education and public safety programs, and reform and support the
1111 horse racing industry by authorizing casino gaming at destination
1212 resorts, authorizing sports wagering, and creating the Texas Gaming
1313 Commission to regulate casino gaming and sports wagering; requiring
1414 a license to conduct casino gaming; requiring the imposition of a
1515 casino gaming tax, sports wagering tax, and license application
1616 fees.
1717 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1818 SECTION 1. The legislature finds that:
1919 (1) the qualified voters of this state should have the
2020 opportunity to decide whether to authorize casino gaming at
2121 destination resorts; and
2222 (2) if authorized by those voters, casino gaming at
2323 destination resorts should:
2424 (A) serve the public interest by fostering
2525 economic development and job growth and providing tax relief and
2626 funding for education and public safety programs;
2727 (B) be strictly regulated by a newly created
2828 state agency empowered to adopt rules governing who may obtain a
2929 casino license and the conduct of casino gaming in this state;
3030 (C) be limited to areas of this state where the
3131 voters previously approved pari-mutuel wagering;
3232 (D) be limited to areas of this state where the
3333 greatest positive economic impact from destination resort
3434 development can be realized;
3535 (E) use some existing pari-mutuel racing
3636 licenses to allow more immediate development of destination resorts
3737 and to more quickly realize the related job growth and economic
3838 development;
3939 (F) encourage participation by and competition
4040 between multiple casino license holders; and
4141 (G) result in the reform and revitalization of
4242 the horse racing industry in this state and the industry's benefits
4343 to agricultural businesses in this state.
4444 SECTION 2. Section 47(a), Article III, Texas Constitution,
4545 is amended to read as follows:
4646 (a) The Legislature shall pass laws prohibiting lotteries
4747 and gift enterprises in this State other than those authorized by
4848 Subsections (b), (d), (d-1), and (e) of this section and Section 47a
4949 of this article.
5050 SECTION 3. Article III, Texas Constitution, is amended by
5151 adding Section 47a to read as follows:
5252 Sec. 47a. (a) In this section:
5353 (1) "Casino" means a licensed facility located in a
5454 destination resort at which casino gaming is conducted.
5555 (2) "Casino gaming" means any game of chance or
5656 similar activity that involves placing a wager for consideration.
5757 The term includes wagering on any type of slot machine or table
5858 game, as defined by the legislature, using money, casino credit, or
5959 any other representation of value. The term does not include:
6060 (A) bingo, a charitable raffle, or the state
6161 lottery authorized under Section 47 of this article; or
6262 (B) placing, receiving, or otherwise knowingly
6363 transmitting a wager by a means that requires the use of the
6464 Internet, except for offering slot machines, table games, or other
6565 devices the Texas Gaming Commission approves that use the Internet
6666 or networking functionality but are played on-site at a casino.
6767 (3) "Casino license" means a license to conduct casino
6868 gaming at a casino.
6969 (4) "Destination resort" means a mixed-use
7070 development consisting of casino gaming facilities and a
7171 combination of tourism amenities and facilities, including hotels,
7272 restaurants, meeting facilities, attractions, entertainment
7373 facilities, and shopping centers.
7474 (5) "Education" means:
7575 (A) public education;
7676 (B) public higher education; and
7777 (C) adult education related to responsible
7878 gaming.
7979 (6) "Metropolitan statistical area" means a
8080 metropolitan statistical area designated by the United States
8181 Office of Management and Budget as of July 1, 2021.
8282 (7) "Person" includes an individual and any legal
8383 entity, including a corporation, organization, partnership, or
8484 association.
8585 (8) "Public safety program" means a program for crime
8686 prevention and law enforcement, including a program designed to
8787 prevent and prosecute crimes involving human trafficking and money
8888 laundering.
8989 (9) "Racetrack association" means a person who holds a
9090 license to conduct racing in this state.
9191 (10) "Racing" means a horse race meeting or greyhound
9292 race meeting with pari-mutuel wagering.
9393 (11) "Sports wagering" means placing a wager on the
9494 outcome of a live sporting event, as defined by general law.
9595 (b) To foster economic development and job growth, provide
9696 tax relief and funding for education and public safety programs,
9797 reform and support the horse racing industry, and provide for
9898 destination resorts in populous metropolitan statistical areas
9999 where pari-mutuel wagering was previously approved, casino gaming
100100 is authorized under casino licenses for casinos at seven
101101 destination resorts in the following locations:
102102 (1) two destination resorts in the Dallas-Fort
103103 Worth-Arlington metropolitan statistical area;
104104 (2) two destination resorts in the Houston-The
105105 Woodlands-Sugar Land metropolitan statistical area;
106106 (3) one destination resort in the San Antonio-New
107107 Braunfels metropolitan statistical area;
108108 (4) one destination resort in the Corpus Christi
109109 metropolitan statistical area; and
110110 (5) one destination resort in the
111111 McAllen-Edinburg-Mission metropolitan statistical area.
112112 (c) The legislature shall:
113113 (1) authorize sports wagering only in a place and
114114 manner prescribed by general law;
115115 (2) regulate the conduct of sports wagering by general
116116 law; and
117117 (3) direct the Texas Gaming Commission to adopt rules
118118 consistent with general law to regulate sports wagering in this
119119 state.
120120 (d) The legislature by general law shall establish the Texas
121121 Gaming Commission as a state agency with broad authority to adopt
122122 and enforce the rules necessary to strictly regulate casino gaming
123123 and sports wagering in accordance with this section.
124124 (e) Notwithstanding any other provision of this
125125 constitution, the Texas Gaming Commission is composed of five
126126 members appointed by the governor with the advice and consent of the
127127 senate to serve staggered six-year terms, as established under
128128 general law. To be eligible for appointment and continued service,
129129 a member must satisfy the qualifications the legislature
130130 establishes under that law.
131131 (f) Notwithstanding any other provision of this
132132 constitution, a racetrack association may designate a person to
133133 apply for and hold a casino license under Subsection (g) of this
134134 section by providing notice to the Texas Gaming Commission in the
135135 manner prescribed by general law or commission rule consistent with
136136 general law. A racetrack association may not change the person
137137 designated in the provided notice unless the person declines the
138138 designation and may not at any time designate more than one person
139139 under this subsection. A racetrack association is ineligible to
140140 hold a casino license if the racetrack association designates a
141141 person for a license under this subsection unless the person
142142 declines the designation. Nothing in this subsection affects
143143 duties or rights established by contract or other law.
144144 (g) Subject to this section and notwithstanding any other
145145 provision of this constitution, the Texas Gaming Commission shall
146146 issue a casino license to each initial qualified applicant. An
147147 initial qualified applicant must:
148148 (1) be of good moral character, be honest, and have
149149 integrity;
150150 (2) demonstrate the issuance of the casino license to
151151 the applicant will not be detrimental to the public interest or the
152152 casino gaming industry;
153153 (3) satisfy the qualifications and any other
154154 requirements established under general law;
155155 (4) demonstrate the financial ability to complete the
156156 development of and operate the destination resort at which the
157157 person will conduct casino gaming;
158158 (5) demonstrate adequate experience in resort
159159 development, resort management, and casino gaming operations;
160160 (6) provide a detailed estimate of the applicant's
161161 total new development investment in the destination resort; and
162162 (7) satisfy the applicable requirements provided in
163163 Subsection (h) of this section.
164164 (h) A qualified applicant for an initial casino license must
165165 satisfy the following requirements for the metropolitan
166166 statistical area in which the destination resort will be located:
167167 (1) for a casino license in the Dallas-Fort
168168 Worth-Arlington metropolitan statistical area, the applicant must:
169169 (A) be a racetrack association that on January 1,
170170 2024, held a license to conduct racing in the Dallas-Fort
171171 Worth-Arlington metropolitan statistical area or the Laredo
172172 metropolitan statistical area or be the person designated by the
173173 racetrack association under Subsection (f) of this section; and
174174 (B) commit to investing for new development of
175175 the destination resort an amount equal to at least $2 billion,
176176 including land acquisition;
177177 (2) for a casino license in the Houston-The
178178 Woodlands-Sugar Land metropolitan statistical area, the applicant
179179 must:
180180 (A) be a racetrack association that on January 1,
181181 2024, held a license to conduct racing in the Houston-The
182182 Woodlands-Sugar Land metropolitan statistical area or the
183183 Brownsville-Harlingen metropolitan statistical area or be the
184184 person designated by the racetrack association under Subsection (f)
185185 of this section; and
186186 (B) commit to investing for new development of
187187 the destination resort an amount equal to at least $2 billion,
188188 including land acquisition;
189189 (3) for a casino license in the San Antonio-New
190190 Braunfels metropolitan statistical area, the applicant must:
191191 (A) be a racetrack association that on January 1,
192192 2024, held a license to conduct racing in the San Antonio-New
193193 Braunfels metropolitan statistical area or be the person designated
194194 by the racetrack association under Subsection (f) of this section;
195195 and
196196 (B) commit to investing for new development of
197197 the destination resort an amount equal to at least $1 billion,
198198 including land acquisition;
199199 (4) for a casino license in the Corpus Christi
200200 metropolitan statistical area, the applicant must:
201201 (A) be a racetrack association that on January 1,
202202 2024, held a license to conduct racing in the Corpus Christi
203203 metropolitan statistical area or be the person designated by the
204204 racetrack association under Subsection (f) of this section; and
205205 (B) commit to investing for new development of
206206 the destination resort an amount equal to at least $250 million,
207207 including land acquisition; and
208208 (5) for a casino license in the
209209 McAllen-Edinburg-Mission metropolitan statistical area, the
210210 applicant must:
211211 (A) be a racetrack association that on January 1,
212212 2024, held a license to conduct racing in the
213213 McAllen-Edinburg-Mission metropolitan statistical area or be the
214214 person designated by the racetrack association under Subsection (f)
215215 of this section; and
216216 (B) commit to investing for new development of
217217 the destination resort an amount equal to at least $250 million,
218218 including land acquisition.
219219 (i) A destination resort at which casino gaming is conducted
220220 under a casino license authorized by Subsection (b) of this section
221221 may be located anywhere in the metropolitan statistical area for
222222 which the license is issued.
223223 (j) Consistent with this section, the legislature by
224224 general law:
225225 (1) shall regulate casino gaming and sports wagering
226226 in this state by prescribing:
227227 (A) additional requirements governing the
228228 issuance of and continued qualification for holding a casino
229229 license;
230230 (B) restrictions on the transfer of casino
231231 licenses;
232232 (C) definitions of terms necessary or useful to
233233 implement this section and consistent with this section, including
234234 the terms casino, casino gaming, casino license, destination
235235 resort, and sports wagering;
236236 (D) qualifications for the issuance of new casino
237237 licenses to persons who are not initial qualified applicants under
238238 Subsection (g) of this section, provided that the number of active
239239 casino licenses, as defined by the legislature, may not at any time
240240 exceed the number of casino licenses for destination resorts
241241 authorized by Subsection (b) of this section; and
242242 (E) restrictions and penalties for the unlawful
243243 conduct of casino gaming and sports wagering; and
244244 (2) may delegate to the Texas Gaming Commission the
245245 authority to adopt rules regulating casino gaming and sports
246246 wagering in accordance with this section.
247247 (k) State or local public money or facilities developed or
248248 built with state or local public assistance or tax incentives of any
249249 kind may not be used for the development or operation of a
250250 destination resort. The legislature by general law shall prescribe
251251 procedures and enforcement measures to ensure that:
252252 (1) a casino license applicant has the financial
253253 capability of satisfying the minimum investment specified in
254254 Subsection (h) of this section; and
255255 (2) each casino license holder satisfies the
256256 investment required under Subsection (h) of this section.
257257 (l) A person may not have an ownership interest in more than
258258 two casino license holders. The legislature by general law shall:
259259 (1) define ownership interest for purposes of this
260260 subsection; and
261261 (2) prescribe the consequences of violating this
262262 subsection.
263263 (m) The legislature by general law shall direct the Texas
264264 Gaming Commission to adopt rules ensuring a person who holds a
265265 casino license and a license to conduct horse racing at a class 1
266266 racetrack, as that term is defined by general law, maintains a
267267 number of live horse racing dates at least equivalent to the number
268268 of live horse racing dates held at the racetrack in 2024.
269269 (n) The legislature by general law shall require a racetrack
270270 association that:
271271 (1) holds a license to conduct greyhound racing to
272272 cease all racing operations and surrender that license as a
273273 condition of holding, or designating a person to hold, a casino
274274 license; and
275275 (2) holds a license to conduct racing in the Laredo
276276 metropolitan statistical area to cease all racing operations and
277277 surrender that license as a condition of holding, or designating a
278278 person to hold, a casino license.
279279 (o) The legislature by general law shall ensure the Texas
280280 Racing Commission or its successor regulates the racing operations
281281 of each racetrack association that holds a casino license and the
282282 Texas Gaming Commission regulates casino gaming and sports wagering
283283 operations of the racetrack association.
284284 (p) The legislature by general law shall impose:
285285 (1) a 15 percent tax on the gross casino gaming
286286 revenue, as defined by general law, of each casino license holder;
287287 and
288288 (2) a tax in the amount provided by general law on
289289 gross sports wagering revenue, as defined by general law.
290290 (q) This state or a state agency or political subdivision of
291291 this state may not impose a tax on the casino gaming revenue of a
292292 casino license holder or a tax or fee on the non-casino gaming
293293 revenue of a casino license holder's operations at a destination
294294 resort, other than the taxes authorized by this section or a tax or
295295 fee generally applicable to a business operating in this state.
296296 (r) To fund and support the administration and management of
297297 the Texas Gaming Commission, the legislature by general law shall
298298 establish casino license application fees in the amount of:
299299 (1) $2.5 million for an application to conduct casino
300300 gaming at a destination resort in the Dallas-Fort Worth-Arlington
301301 or Houston-The Woodlands-Sugar Land metropolitan statistical area;
302302 (2) $1.25 million for an application to conduct casino
303303 gaming at a destination resort in the San Antonio-New Braunfels
304304 metropolitan statistical area; and
305305 (3) $500,000 for an application to conduct casino
306306 gaming at a destination resort in the Corpus Christi or
307307 McAllen-Edinburg-Mission metropolitan statistical area.
308308 (s) Notwithstanding any other provision of this
309309 constitution, the legislature by law shall allocate a portion of
310310 the annual revenues received from taxes imposed on the gross casino
311311 gaming revenue of casino license holders to be used as horse racing
312312 purse money for the public purpose of promoting the growth and
313313 sustainability of the horse racing industry in this state.
314314 SECTION 4. This proposed constitutional amendment shall be
315315 submitted to the voters at an election to be held November 4, 2025.
316316 The ballot shall be printed to permit voting for or against the
317317 proposition: "The constitutional amendment to foster economic
318318 development and job growth, provide tax relief and funding for
319319 education and public safety programs, and reform and support the
320320 horse racing industry by authorizing casino gaming at destination
321321 resorts, authorizing sports wagering, and creating the Texas Gaming
322322 Commission to regulate casino gaming and sports wagering; requiring
323323 a license to conduct casino gaming; and requiring the imposition of
324324 a casino gaming tax, sports wagering tax, and license application
325325 fees."