Betting Against Texas: The High Price of Expanding Gambling in Our State
March 19, 2025 | Media Inquiries: press@mctxgop.org
“Texas Destination Resorts” ads seem to be everywhere right now. These ads are primarily funded by the Las Vegas Sands Corp., a major casino and resort company, through its backing of the Texas Destination Resort Alliance (TDRA).
The ads urge lawmakers to let Texans vote on “destination resorts,” a euphemism for casinos, and emphasize so-called benefits like education funding and keeping revenue in Texas, rather than losing it to neighboring states. The ads fail to mention the costs of dealing with diminished economic prosperity and crime related to gambling expansion. They also omit the Texas Lottery education-funding bait and switch that has been pulled on Texans for almost 30 years.
Gambling’s Costly Underbelly
Diminished Economic Prosperity: Studies estimate that up to 60 percent of machine gambling revenue comes from those with gambling issues (Schüll, Natasha Dow; Addiction by Design). The National Council on Problem Gambling notes that not only the gambler is impacted. Problem gambling also affects 10–17 people per gambler, such as family members and coworkers, amplifying social costs like increased reliance on public assistance.
Jobs created by casinos are often low-wage or seasonal. The National Bureau of Economic Research and many published studies suggest casinos can siphon money from other local sectors. People might spend at the casino instead of at a neighborhood restaurant or retailer, wreaking havoc on local businesses. In addition, communities with weaker economic bases might not see the promised prosperity if profits get funneled to out-of-state operators.
Crime and Corruption: According to the U.S. Department of State and the FBI, gambling is often tied to money laundering, organized crime, and sex trafficking. Approximately half of those suffering from gambling addiction commit a crime and it’s estimated that individuals with gambling issues cost the justice system $2,200 to $3,000 per person. Individuals with severe gambling problems may have a lifetime total cost to the justice system of $10,000 or more.
This is especially relevant given the ongoing claims of Texas Lottery corruption and lack of legislative oversight for the Texas Lottery Commission. Texas Scorecard’s Daniel Greer said, “the latest scandals that rocked the gambling bureaucrats at the Lottery Commission include a rigging scandal that allowed out-of-state buyers to win a massive jackpot and the abuse of their power in 2020 to push the lottery onto teens in Texas and beyond.”
According to Texans Against Gambling, “Casinos promise the world but in fact correlate with diminished economic prosperity: slower job growth, dampened sales tax revenues, and slower growth in local gross domestic product.”
Moral and Cultural Concerns: The Republican Party of Texas Party Platform opposes the expansion of gambling in Texas, and even calls for legislators to decline campaign contributions from gambling PACs or lobbyists. Religious groups argue it undermines values of hard work and responsibility, potentially eroding Texas’ social fabric.
Does Texas Need Funding for Education?
The Texas Education Agency (TEA) reported total per-student spending at $11,803 for 2023–2024. In his February 2, 2025, State of the State Address, Governor Greg Abbott stated that Texas public education funding and funding per student is at an “all-time high.”
Remember that the Texas Lottery was originally marketed as a way to completely fund education in Texas, but the payout has been a measly 3 percent of the education budget coupled with a side of corruption and legislative headaches.
With this reported investment in education, and a $24 billion state budget surplus, the idea of incorporating gambling funds into the education system seems like a sucker’s bet that will risk adding additional costs for needed regulation and oversight.
What’s Next for Texas?
Lt. Governor Dan Patrick and Texas Senate Republicans have consistently blocked gambling bills. Expansion would require a constitutional amendment—needing two-thirds legislative approval and a voter referendum—a high bar unless public demand for gambling surges. Unfortunately, our legislators are under immense pressure from the gambling lobby, which makes significant contributions to many of their campaigns. And the Texas Destination Resort Alliance seems to be all-in on influencing public opinion through their non-stop ads.
Republicans believe in personal liberty as long as it doesn’t infringe on the wellbeing of others. It is vital for Texas voters to understand that expanding gambling in Texas is not just a personal decision for those who choose to participate—it’s a decision with consequences that will impact every Texan.
Take Action
Visit transparencyusa.org to see how much money your elected officials’ campaigns have received from the gambling lobby and other political action committees (PACs).
Make sure you can articulate the consequences of expanding gambling in Texas to your friends and neighbors. Contact your legislators to let them know you don’t want to see a gambling expansion in our great state.