Betting on Slots: Bill would bring slots to Texas racetracks

McALLEN — Not far from the State Farm Arena, there’s a roughly 200-acre field ripe for slot machines, and an obligatory racetrack.

Approved nearly four years ago by the Texas Racing Commission, the project was sidelined by the recession and Texas’ anemic horse racing circuit. Today, utilities haven’t even been extended to the property, at the northwest corner of 10th Street and Dicker Road.

That may change soon, thanks to Texas’ $27 billion budget shortfall, which has sent state legislators scrambling to find new revenue sources and avoid drastic cuts.

State Sen. Juan “Chuy” Hinojosa, D-McAllen, supported by a coalition of racetrack owners called Win for Texas, introduced a bill last week designed to legalize video lottery terminals on the state’s 13 licensed racetracks and land owned by three federally recognized Native American tribes.

“I feel confident the vote will be there in the Texas Senate,” Hinojosa said. “I cannot speak for the House, though. They have a group of new, young legislators.”

Hinojosa and Sen. Jeff Wentworth, R-San Antonio, introduced the bill Thursday.

Legalizing video lottery terminals, which resemble slot machines but have pre-determined payouts akin to scratch-off lottery cards, would generate $1.5 billion every two years and create 75,000 jobs, Hinojosa said. It would also entice Texans to gamble in Texas, instead of crossing state lines or flying to Las Vegas to gamble.

“Why not have them spend it here in Texas to benefit us?” Hinojosa said.

It’s a potentially game-changing proposal for the LaMantia family, which controls the racetrack license. At least six members of the family, which owns local Anheuser-Busch affiliate L&F Distributors, have stakes in the project, according to business filings available from the Texas Secretary of State’s office.

“It’s a very attractive situation if we’re able to get that passed,” said Greg LaMantia, president of Valle de los Tesoros, which holds the license. For now, though, the project remains “in flux” and doesn’t have a timeline.

If approved by the Legislature, the proposal would go to voters. If voters approve the measure, Win for Texas estimates existing racetracks would have slots installed within 60 to 90 days.

Activity at the Valle de los Tesoros site would likely take longer, and come with a significant cost. Extending utilities to the site wouldn’t be difficult, but would be expensive, said Roy Rodriguez, general manager of the McAllen Public Utility.

Statewide, slots would breathe new life into Texas’ racetracks, which have struggled to compete with out-of-state venues where slots are already legal and help fund larger prizes.

“Without slots? They'll continue to decline,” said Mike Lavigne, a Win for Texas spokesman, about the state’s horse racing industry.

Lavigne said Texans spend $2 billion at out-of-state racetracks and casinos every year. Altogether, Win for Texas projects legalizing slots would bring $8.5 billion in economic activity to the state annually.

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Dave Hendricks covers McAllen and general assignments for The Monitor. He can be reached at (956) 683-4452.