Texas Hearing Reveals Many Questions, Little Consensus

The Texas House State Affairs Committee opted Wednesday not to vote on any gambling-related legislation, including several proposals that would legalize statewide mobile wagering, after the first comprehensive public meeting held to discuss large-scale gaming expansion.

The committee met for a collegial and informative hearing at which one lawmaker quipped that maybe the Texas Rangers shouldn’t be considered a “professional” sports team and another asked counsel for the Dallas Cowboys if there was cap room for the team to acquire quarterback Aaron Rodgers. The more serious upshot was that committee members need more information before taking any action, as they have questions surrounding everything from tax rates to fees to tribal issues.

In particular, Rep. John Smithee repeatedly asked witnesses what the real value of a gaming license in the state would be. He suggested that given the state’s massive population and a limited number of licenses, the state could ask for as much as $20 million for a license — whether it be only for sports betting or for online casino gambling as well.

A standalone sports betting bill, HB 1942, and HJR 102, propose setting the application fee at $500,000 with a $100,000 per year renewal. For comparison, the initial licensing fee in New York, the biggest state with legal sports betting, is $25 million, which appears to be spread over 10 years.

  
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