Gambling in Texas: You’ve come a long way, but...!

You may or may not remember, but it took several years for Texas to establish the state lottery.

Eventually, however, the Texas Lottery was launched on May 29, 1992, when the first ticket -- for Lone Star Millions -- was purchased by Gov. Ann Richards at Polk's Feed Store in Oak Hill. Since that time, the Texas Lottery has generated more than $20 billion in revenue for the state and distributed $39 billion in prizes to lottery players.

That day, Texans set a world record for first-day sales (23.2 million lottery tickets) and first-week sales (102.4 million tickets), There were 6 prizes of $1 million (annuity-only) and 479 of $10,000 each. Starting with $1 scratchoff cards (still available), the Texas lottery now has scratch-offs up to $50, plus games like Texas Two-Step plus multi-state games like Powerball.

As our legislature debated whether or not to institute the lottery, as I remember, the greatest objection was that some lawmakers believed Texans would buy lottery tickets instead of using that money to buy shoes for their children.

Secondarily, some Texas churchmen preached against gambling -- like the lottery -- as (1) the wages of sin and the work of Satan; and (2) the lottery would lure unsavory types into Texas if the lottery became legal.

Upon hearing that argument, it occurred to me that money for food and milk would certainly take priority over shoes for the kids.

In the 2018 fiscal year, Texas lottery revenue was allocated as follows:

· 65.1 percent is paid out in prizes.

· 25.5 percent is paid to the Foundation School Fund, administered by the Texas Education Agency to support public education.

· 5.4 percent is paid to retailers as commissions.

· 3.7 percent is retained to cover administration costs.

· 0.3 percent is transferred to the Texas Legislature for allocation. This revenue includes unclaimed prizes and from sales of scratch ticket games such as Veterans Cash. These programs were discontinued as of September 1, 2018.

Parimutuel betting traveled the same slow Texas road, even as hundreds of Texans were placing millions of dollars in bets at neighboring states’ horse tracks every weekend.

But, historically speaking, Texas first legalized parimutuel betting in 1933 as a way to raise revenues during the Great Depression.

Four major tracks operated in the state, until 1937, when betting was banned at a special legislative session called by Governor James Allred. Allred had campaigned on the promise to rid the state of “the vile practice of betting on horse racing.” With strong support from the churches, Allred prevailed. In 1937, Texas became the only state in the nation to rescind parimutuel betting…and that’s where the matter stood for 50 years.

Then, after much debate in the Texas legislature, Texans voted to legalize betting on horses in 1987. Churches once again did not support the legalization on moral grounds while other anti-legalization lobbyists from states relying on parimutuel tourism from Texas joined forces with Texas clergy against the “sin” of gambling.

During the 2020 elections, Las Vegas casino mogul Sheldon Adelson contributed major bucks to Texas legislative candidates. Now, as one news outlet announced, Adelson has amassed a stable of highpowered lobbyists with plans to blitz the upcoming legislative session in an effort to bring casinos to Texas.

Since I’m not a gambler, I’ll need more information before I vote to legalize casino gambling in Texas, just like I’ll need more information about legalizing recreational cannabis. However, as a veteran taxpayer, I don’t see the logic in Texans taking their money to fatten the coffers of other states when we -- especially after economic losses caused by COVID-19 -- need that money for education, healthcare, housing, infrastructure, flood/drought mitigation and other issues.

The next five months around the capitol should be fun to watch. Who knows? Dripping Springs may become the next gambling mecca in the country.