Proposing a constitutional amendment to foster economic development and job growth, provide tax relief and funding for education and public safety programs, and reform and support the horse racing industry by authorizing casino gaming at destination resorts, authorizing sports wagering, and creating the Texas Gaming Commission to regulate casino gaming and sports wagering; requiring a license to conduct casino gaming; requiring the imposition of a casino gaming tax, sports wagering tax, and license application fees.

89th Legislature (2025) Introduced by Carol Alvarado

Texas constitutional amendment legalizes casinos at destination resorts and sports wagering, creating Gaming Commission and imposing taxes to fund education, public safety, and horse racing.

Referred to State Affairs

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Legislative bill overview

SJR 16 proposes a constitutional amendment to legalize and regulate casino gaming at destination resorts and sports wagering in Texas. The measure would establish a new Texas Gaming Commission, require licensing for casino operators, and impose taxes and fees on gaming activities. Revenue would be directed toward education, public safety, economic development, and support for the horse racing industry.

Why is this important

This amendment could generate substantial state revenue for education and public safety without raising traditional taxes, addressing ongoing funding pressures in these sectors. However, it represents a significant policy shift for Texas, which has historically restricted gambling, and would fundamentally change the state's regulatory landscape and gaming options for residents.

Potential points of contention

Revenue projections and reliability: Actual gaming tax revenues are difficult to predict and may fall short of projections, potentially creating budget planning challenges if education/safety funding depends on these revenues

Social and public health impacts: Expanded gambling access could increase problem gambling rates, particularly among vulnerable populations, with unclear costs for addiction treatment and social services

Destination resort requirements and economic claims: The "destination resort" limitation may restrict competition and gaming locations, and economic development benefits are uncertain—casinos don't automatically create jobs or diversify local economies as claimed

Regulatory effectiveness: The new Gaming Commission's ability to prevent fraud, corruption, and organized crime involvement requires robust enforcement capacity that may be difficult to establish initially

Horse racing industry specificity: Why horse racing receives specific support when other industries don't raises questions about special interest influence and equitable policy design