Gambling bill on hold until 2005

AUSTIN -- Indian gaming probably died this legislative session when the Texas House declined Tuesday to expand gambling in a bill to extend the state lottery for 12 more years.

"It makes it highly unlikely that we're going to succeed this session," Rep. Terry Keel, R-Austin, said of his efforts to legalize gaming at the state's three Native American reservations.

The legislative session will end Monday.

Last week, Rep. Ron Wilson, D-Houston, speculated that video lottery and Indian gaming would be debated when his lottery sunset bill reached the House floor. Video lottery and Indian gaming combined could have produced nearly $1 billion for the state.

But an unexpected $1.3 billion windfall from the federal tax cut legislation passed by Congress late last week relieved some of the pressure on state lawmakers to find extra money, Wilson said.

His lottery bill only extends the state's lottery to a multistate lottery, or Powerball, that is expected to add $101 million to the state's two-year budget.

Gov. Rick Perry also signaled firm opposition to any expansion of gambling, such as Indian gaming or video lottery slot machines.

"We were not even allowed the opportunity to bring up the issue because of politics," said Rep. Norma Chávez, D-El Paso. Her district includes the Tigua reservation.

"The Tiguas are major economic developers of the midvalley and lower valley. They provided over 1,000 good-paying jobs with health care," she said. "They utilized Indian gaming to be self-sufficient -- developing housing."

The Tiguas shut down their highly profitable Speaking Rock Casino last year under a federal court order.

Keel pushed legislation this session that would have allowed the Tiguas to reopen their gaming enterprise. Keel and other supporters of Indian gaming contend the state's lottery game entitles Indian tribes to offer gambling.

"The tribes in Texas are right in their position. But being right doesn't always meet with success," Keel said. "We are going to have to continue trying. We have tried two sessions in a row, and I'll continue to try again next session if I'm back here."

Tigua leaders plan to keep trying and hope their offer to share some of their gaming revenue with the state will allow them to reopen.

"We are disappointed that circumstances didn't allow the bill to be heard," Tigua spokesman Marc Schwartz said Tuesday night.

Keel's stand-alone gaming bill got knocked off the House calendar when Texas Democrats bolted to Oklahoma to stop a controversial congressional redistricting bill. But even with House approval, Indian gaming faced serious opposition in the Senate -- and the governor's threatened veto.