Las Vegas Sands Starts Petition Drive to Bring Casinos to Texas

Posted on: March 28, 2024, 06:24h. 

Last updated on: March 29, 2024, 11:18h.

Todd Shriber @etfgodfather Read More

Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Las Vegas Sands (NYSE: LVS), the largest domestic gaming company by market capitalization, has filed a new petition to bring casino gaming to Texas.

The Las Vegas-based gaming company is behind the Texas Destination Resort Alliance, which wants to give Texans the opportunity to vote on the issue of casino resorts. On the political front, integrated resorts made progress in the second-largest state last year, but that momentum ultimately stalled.

Under Texas law, two-thirds majorities of the state House and Senate are required to amend the constitution before gaming expansion can be put before voters.

“This measure would bring billions of dollars back to Texas from bordering states, to boost the state’s economy. Texans would see several billion dollars invested into the state and billions for local services they rely on,” said the Texas Destination Resort Alliance of the legislation it’s endorsing.

Entering 2024, it was widely believed that because this is an election year, the issues of casino gaming and sports wagering would be uphill battles in the Texas legislature. That difficulty could be amplified at a time when several Republican members of the State House are facing difficult reelection bids. Last month, State Rep. Charlie Geren (R-Fort Worth) filed a bill that could restart the casino debate in Texas.

Sands Has Long Coveted Texas

Sands’ interest in Texas isn’t new. The operator has spent millions of dollars lobbying Texas politicians to advance the casino issue. Along with New York City, the Lone Star state is widely viewed as the best frontier for commercial gaming expansion in this country.

The families of Miriam Adelson and Sivan and Patrick Dumont now own 73% of the NBA team, with former majority owner Mark Cuban controlling the remainder. While Adelson is the largest LVS shareholder and Dumont, now the Mavs’ governor, is the operator’s chief financial officer, they own the team, not the gaming company.

Cuban has long supported Texas legalizing casinos as a means of boosting tourism, and he previously said he’d like to partner with LVS on such a venture.

Familiar Points Used

Texas has sparse gaming offerings and has long been viewed as opposed to wagering expansion. As a byproduct of that, residents of the state have, for decades, flocked to commercial casinos in Louisiana and tribal gaming venues in Oklahoma, taking taxable receipts with them.

That point is likely to be leaned on by policymakers supporting Texas casinos, as are other familiar issues, including job creation and money for public education.

“Revenue raised from these new sites could provide funding for public education and public higher education for the arts, as well as for public safety and law enforcement,” added the Texas Destination Resort Alliance.