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A JOINT RESOLUTION
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proposing a constitutional amendment to foster economic |
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development and job growth, provide tax relief and funding for |
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education and public safety programs, and reform and support the |
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horse racing industry by authorizing casino gaming at destination |
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resorts, creating the Texas Gaming Commission, authorizing sports |
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wagering, requiring a license to conduct casino gaming, and |
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requiring the imposition of a gaming and sports wagering tax and |
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license application fees. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Legislature finds that: |
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(1) the qualified voters of this state should have the |
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opportunity to decide whether to authorize casino gaming at |
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destination resorts; and |
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(2) if authorized by those voters, casino gaming at |
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destination resorts should: |
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(A) serve the public interest by fostering |
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economic development and job growth and providing tax relief and |
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funding for education and public safety programs; |
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(B) be strictly regulated by a newly created |
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state agency empowered to adopt rules regulating who may obtain a |
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casino license and the conduct of casino gaming in this state; |
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(C) be limited to areas of this state in which |
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pari-mutuel wagering has previously been approved; |
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(D) be limited to areas of this state in which the |
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greatest positive economic impact from destination resort |
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development can be realized; |
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(E) utilize some existing pari-mutuel racing |
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licenses to allow more immediate development of destination resorts |
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and to more quickly realize the related job growth and economic |
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development; |
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(F) encourage participation by and competition |
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between multiple casino license holders; and |
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(G) result in the reform and revitalization of |
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the horse racing industry in this state and the industry's benefits |
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to agricultural businesses in this state. |
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SECTION 2. Section 47(a), Article III, Texas Constitution, |
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is amended to read as follows: |
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(a) The Legislature shall pass laws prohibiting lotteries |
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and gift enterprises in this State other than those authorized by |
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Subsections (b), (d), (d-1), and (e) of this section and Section 47a |
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of this article. |
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SECTION 3. Article III, Texas Constitution, is amended by |
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adding Section 47a to read as follows: |
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Sec. 47a. (a) In this section: |
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(1) "Casino" means licensed facilities located at a |
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destination resort at which casino gaming is conducted. |
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(2) "Casino gaming" means any game of chance or |
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similar activity that involves placing a bet for consideration. |
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The term includes wagering on any type of slot machine or table |
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game, as defined by the legislature, using money, casino credit, or |
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any other representation of value. The term does not include: |
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(A) bingo, a charitable raffle, or the state |
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lottery authorized under Section 47 of this article; or |
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(B) placing, receiving, or otherwise knowingly |
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transmitting a bet or wager by a means that requires the use of the |
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Internet, except for offering slot machines, table games, or other |
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devices the Texas Gaming Commission approves that use the Internet |
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or networking functionality but are played onsite at a casino. |
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(3) "Casino license" means a license to conduct |
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casino gaming at a casino. |
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(4) "Destination resort" means a mixed-use |
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development consisting of casino gaming facilities and a |
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combination of various tourism amenities and facilities, including |
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hotels, restaurants, meeting facilities, attractions, |
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entertainment facilities, and shopping centers. |
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(5) "Education" means public education, public higher |
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education, and adult education related to responsible gaming. |
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(6) "Metropolitan statistical area" means a |
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metropolitan statistical area designated by the United States |
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Office of Management and Budget as of July 1, 2021. |
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(7) "Person" includes an individual and any legal |
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entity, such as a corporation, organization, partnership, or |
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association. |
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(8) "Public safety program" means a program for crime |
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prevention and law enforcement, including a program designed to |
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prevent and prosecute crimes involving human trafficking and money |
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laundering. |
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(9) "Racetrack association" means a person who holds |
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a license to conduct racing in this state. |
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(10) "Racing" means a horse race meeting or greyhound |
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race meeting with pari-mutuel wagering. |
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(11) "Sports wagering" means wagering on the outcome |
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of a live sporting event, as defined by general law. |
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(b) To foster economic development and job growth, provide |
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tax relief and funding for education and public safety programs, |
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reform and support the horse racing industry, and provide for |
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destination resorts in populous metropolitan statistical areas in |
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which pari-mutuel wagering previously has been approved, casino |
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gaming is authorized pursuant to casino licenses for casinos at |
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destination resorts as follows: |
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(1) two destination resorts in the Dallas-Fort |
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Worth-Arlington metropolitan statistical area; |
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(2) two destination resorts in the Houston-The |
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Woodlands-Sugar Land metropolitan statistical area; |
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(3) one destination resort in the San Antonio-New |
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Braunfels metropolitan statistical area; |
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(4) one destination resort in the Corpus Christi |
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metropolitan statistical area; and |
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(5) one destination resort in the |
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McAllen-Edinburg-Mission metropolitan statistical area. |
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(c) The legislature shall: |
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(1) authorize sports wagering only in a place and |
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manner prescribed by general law; |
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(2) regulate by general law the conduct of sports |
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wagering; and |
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(3) direct the Texas Gaming Commission to promulgate |
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rules consistent with general law to regulate sports wagering in |
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this state. |
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(d) The legislature by general law shall establish the Texas |
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Gaming Commission as a state agency with broad authority to adopt |
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and enforce the rules necessary to strictly regulate casino gaming |
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and sports wagering in accordance with this section. |
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(e) The Texas Gaming Commission is composed of five members |
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appointed by the governor with the advice and consent of the senate |
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to serve staggered terms of six years each, as established under |
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general law. To be eligible for appointment and continued service, |
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a member must satisfy the qualifications established by the |
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legislature under that law. |
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(f) A racetrack association may designate a person to apply |
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for and hold a casino license under Subsection (g) of this section |
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by providing notice to the Texas Gaming Commission in the manner |
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prescribed by general law or commission rule consistent with |
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general law. A racetrack association may not change the person |
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designated in the provided notice unless the person declines the |
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designation. A racetrack association may not at any time designate |
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more than one person under this subsection. A racetrack |
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association is ineligible to hold a casino license if the racetrack |
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association designates a person for a license under this subsection |
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unless the designation is declined by the person. Nothing in this |
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subsection affects duties or rights established by contract or |
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other law. |
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(g) Subject to this section, the Texas Gaming Commission |
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shall issue a casino license to each initial qualified applicant. |
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An initial qualified applicant must: |
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(1) be of good moral character, be honest, and have |
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integrity; |
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(2) demonstrate that issuance of the casino license to |
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the applicant will not be detrimental to the public interest or the |
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casino gaming industry; |
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(3) satisfy the qualifications and any other |
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requirements established under general law; |
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(4) demonstrate the financial ability to complete the |
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development of and operate the destination resort at which the |
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person will conduct casino gaming; |
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(5) have adequate experience in resort development, |
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resort management, and casino gaming operations; |
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(6) provide a detailed estimate of the applicant's |
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total new development investment in the destination resort; and |
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(7) satisfy the applicable requirements provided in |
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Subsection (h) of this section. |
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(h) An initial qualified applicant for a casino license must |
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satisfy the following requirements for the metropolitan |
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statistical area in which the destination resort will be located: |
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(1) for a casino license in the Dallas-Fort |
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Worth-Arlington metropolitan statistical area, the initial |
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qualified applicant must: |
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(A) be a racetrack association that on January 1, |
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2022, held a license to conduct racing anywhere in the Dallas-Fort |
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Worth-Arlington metropolitan statistical area or the Laredo |
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metropolitan statistical area or be the person designated by the |
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racetrack association under Subsection (f) of this section; and |
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(B) commit to investing for new development of |
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the destination resort an amount equal to at least $2 billion, |
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including land acquisition; |
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(2) for a casino license in the Houston-The |
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Woodlands-Sugar Land metropolitan statistical area, the initial |
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qualified applicant must: |
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(A) be a racetrack association that on January 1, |
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2022, held a license to conduct racing anywhere in the Houston-The |
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Woodlands-Sugar Land metropolitan statistical area or the |
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Brownsville-Harlingen metropolitan statistical area or be the |
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person designated by the racetrack association under Subsection (f) |
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of this section; and |
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(B) commit to investing for new development of |
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the destination resort an amount equal to at least $2 billion, |
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including land acquisition; |
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(3) for a casino license in the San Antonio-New |
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Braunfels metropolitan statistical area, the initial qualified |
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applicant must: |
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(A) be a racetrack association that on January 1, |
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2022, held a license to conduct racing anywhere in the San |
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Antonio-New Braunfels metropolitan statistical area or be the |
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person designated by the racetrack association under Subsection (f) |
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of this section; and |
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(B) commit to investing for new development of |
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the destination resort an amount equal to at least $1 billion, |
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including land acquisition; |
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(4) for a casino license in the Corpus Christi |
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metropolitan statistical area, the initial qualified applicant |
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must: |
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(A) be a racetrack association that on January 1, |
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2022, held a license to conduct racing anywhere in the Corpus |
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Christi metropolitan statistical area or be the person designated |
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by the racetrack association under Subsection (f) of this section; |
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and |
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(B) commit to investing for new development of |
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the destination resort an amount equal to at least $250 million, |
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including land acquisition; and |
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(5) for a casino license in the |
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McAllen-Edinburg-Mission metropolitan statistical area, the |
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initial qualified applicant must: |
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(A) be a racetrack association that on January 1, |
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2022, held a license to conduct racing anywhere in the |
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McAllen-Edinburg-Mission metropolitan statistical area or be the |
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person designated by the racetrack association under Subsection (f) |
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of this section; and |
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(B) commit to investing for new development of |
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the destination resort an amount equal to at least $250 million, |
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including land acquisition. |
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(i) A destination resort at which casino gaming is conducted |
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under a casino license may be located anywhere within the |
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metropolitan statistical area for which the license is issued. |
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(j) Consistent with this section, the legislature by |
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general law: |
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(1) shall regulate casino gaming and sports wagering |
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in this state by prescribing: |
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(A) additional requirements governing the |
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issuance and continued qualification for holding a casino license; |
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(B) restrictions on the transfer of casino |
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licenses; |
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(C) definitions of terms necessary or useful to |
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implement this section, such as the terms casino, casino gaming, |
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casino license, destination resort, and sports wagering; |
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(D) qualifications for the issuance of new casino |
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licenses to persons that are not initial qualified applicants under |
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Subsection (g) of this section, provided that the number of active |
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casino licenses, as defined by the legislature, may not at any one |
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time exceed the number of casino licenses for destination resorts |
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authorized in Subsection (b) of this section; and |
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(E) restrictions and penalties for the unlawful |
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conduct of casino gaming and sports wagering; and |
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(2) may delegate to the Texas Gaming Commission the |
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authority to prescribe rules regulating casino gaming and sports |
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wagering in accordance with this section. |
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(k) State or local public money or facilities developed or |
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built with state or local public assistance or tax incentives of any |
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kind may not be used for the development or operation of a |
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destination resort. The legislature by general law shall prescribe |
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procedures and enforcement measures to ensure that: |
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(1) a casino license applicant has the financial |
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capability of satisfying the minimum investment specified in |
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Subsection (h) of this section; and |
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(2) each casino license holder satisfies the |
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investment required under Subsection (h) of this section. |
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(l) A person may not have an ownership interest in more than |
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two casino license holders. The legislature by general law shall: |
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(1) define ownership interest for purposes of this |
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subsection; and |
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(2) prescribe the consequences of violating this |
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subsection. |
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(m) The legislature by general law shall direct the Texas |
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Gaming Commission to adopt rules to ensure that a person who holds |
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a casino license and a license to conduct horse racing at a class 1 |
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racetrack, as that term is defined by general law, maintains a |
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number of live horse racing dates that is at least equivalent to the |
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number of live horse racing dates held at the racetrack in 2022. |
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(n) The legislature by general law shall require a racetrack |
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association that: |
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(1) holds a license to conduct greyhound racing to |
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cease all racing operations and surrender that license as a |
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condition of holding, or designating a person to hold, a casino |
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license; and |
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(2) holds a license to conduct racing in the Laredo |
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metropolitan statistical area to cease all racing operations and |
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surrender that license as a condition of holding, or designating a |
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person to hold, a casino license. |
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(o) The legislature by general law shall ensure the Texas |
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Racing Commission or its successor regulates the racing operations |
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of each racetrack association that holds a casino license and the |
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Texas Gaming Commission regulates casino gaming and sports wagering |
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operations of the racetrack association. |
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(p) The legislature by general law shall: |
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(1) impose a 15 percent tax on the gross casino gaming |
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revenue, as defined by general law, of each casino license holder; |
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and |
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(2) impose a tax on sports wagering revenue. |
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(q) The state or a state agency or political subdivision of |
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this state may not impose a tax on the casino gaming revenue of a |
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casino license holder or a tax or fee on the non-gaming revenue of |
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casino license holder's operations at a destination resort, other |
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than the tax authorized by this section or a tax or fee generally |
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applicable to a business operating in this state. |
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(r) To fund and support the administration and management of |
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the Texas Gaming Commission, the legislature by general law shall |
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establish casino license application fees in the amount of: |
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(1) $2.5 million for an application to conduct casino |
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gaming at a destination resort in the Dallas-Fort Worth-Arlington |
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or Houston-The Woodlands-Sugar Land metropolitan statistical |
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areas; |
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(2) $1.25 million for an application to conduct |
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casino gaming at a destination resort in the San Antonio-New |
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Braunfels metropolitan statistical area; and |
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(3) $500,000 for an application to conduct casino |
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gaming at a destination resort in the Corpus Christi or |
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McAllen-Edinburg-Mission metropolitan statistical areas. |
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(s) The legislature by law shall annually allocate a portion |
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of the revenues received from taxes imposed on the gross casino |
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gaming revenue of casino license holders to be used as horse racing |
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purse money to promote the growth and sustainability of the horse |
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racing industry in this state. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2023. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment to foster economic |
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development and job growth, provide tax relief and funding for |
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education and public safety programs, and reform and support the |
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horse racing industry by authorizing casino gaming at destination |
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resorts, authorizing sports wagering, creating the Texas Gaming |
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Commission to regulate casino gaming and sports wagering, requiring |
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a license to conduct casino gaming, and requiring the imposition of |
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a gaming tax, sports wagering tax, and license application fees." |