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BETTING

DraftKings Among Several Gaming Companies Seeking to Lobby Texas Legislators

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Signage at the DraftKings Sportsbook at The Brook ribbon cutting on October 23, 2020 in Seabrook, New Hampshire. Image used for illustrative purposes. Scott Eisen/Getty Images for DraftKings/AFP

Texas’ biennial legislative session will commence in January, and among the deluge of proposed legislation, sports betting and commercial casino gaming will be among them. DraftKings and several other gaming companies will try to buck the odds and get their interests served in the Lone Star State.

Lofty Ambitions

Texas is one of the few states that is without online or retail sports betting as well as commercial casinos. There are only a few small tribal casinos and horse tracks, but residents and visitors won’t find the glitzy glamour of Las Vegas-style casinos splashed along the Houston or Dallas areas. Texas lawmakers only approved the sale of lottery tickets in the 1990s.

The state is inherently conservative, anchored with religious roots, and although that obstacle to sports betting legalization has been overcome in similar states, the man in charge of the Senate, Lieutenant Governor Dan Patrick, has been adamantly opposed to any attempts to bring sports betting to the Lone Star State.

Nevertheless, DraftKings has recently hired a Texas-based “government affairs specialist” and will join other major industry powerhouses like FanDuel, Fanatics, and BetMGM, all of whom will be sending lobbying teams to represent their gaming interests.

Rolling the Dice

Mark Cuban, the former majority owner of the Dallas Mavericks, has also yearned for a destination gambling resort in Texas. But now that torch will be handed over to Miriam Edelson, widow of casino magnate Sheldon Adelson, owner of the Las Vegas Sands and now majority owner of the Dallas Mavericks.

The endgame is to bring a new stadium for the Mavericks along with a hotel casino resort to the Dallas metroplex. Industry-funded surveys have shown there is major support for expanded gaming in Texas, and former popular Republican Governor Rick Perry has been a major proponent of legalized gambling since leaving office.

Conservatism Rules in Texas

One of the biggest obstacles facing the pro-gambling factions is the man in charge of the state Senate, Lieutenant Governor Dan Patrick. But after his recent comments concerning sports betting and casino gambling, he might not be as intractable as many believe, including Dallas Stars President Brad Alberts.

When Alberts was asked about the odds of sports betting being passed during the upcoming legislative session, he responded, “50-50 at best. I think it’s in the same spot it was. The same challenges exist, which is a resistant Senate, led by the lieutenant governor. And I don’t think that that has changed. Obviously, those same personalities are still in office.”

Yet, when Lieutenant Governor Patrick was recently asked about his recalcitrance toward expanding gaming in Texas, his reply surprised some in the industry. “When we finished this last session, no one called and said, Oh, you didn’t pass the casino bill. It’s not on anyone’s top 20 list,” Patrick said. “It doesn’t mean there aren’t people who really want it. But like anything else… it really bubbles up from the ground to tell a House member or a Senator that they want this legislation to pass. And that just has not happened.”

Therefore, it appears as though Patrick is not diametrically opposed to sports betting or commercial casino gaming but merely believes there is not enough of a groundswell of support for it. Patrick contends there are more pressing matters for the legislature to attend to, but perhaps the gaming industry will change his mind in 2025.

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