Trouble is brewing in the Texas horse racing industry with some individuals pushing for legalized gambling to bring it back to life. The main reason for this counter-reaction is because numerous breeders are leaving Texas for other states that have legalized gambling and are now attracting bigger crowds. Studies indicate that the Oklahoma horse industry has grown exponentially, bringing in $3.6 billion in 2012. On the other hand, in Texas, only 300 foals legible for horse racing were registered in the year 2013, these figures are a far-cry from the peak of more than 4,000 that used to be registered during the heydays.
The report by the Texas Racing Commission in 2011 indicated that attendance has dropped 12%, and the money wagered fell 23% across the state during the 5 year period under-study. While the horse racing industry may not exactly be hemorrhaging in Texas, stringent regulations are keeping it from asserting itself competitively. Statistics further reveal that, over the past 20-years; institutionalization of legalized gambling in the US has seen a phenomenal growth in the gambling industry from a paltry 2 states at the beginning to 48 states today which allow some form of legal gambling. Out of these numbers; 40 states now allow gambling of the casino nature.
Many states outside Texas have witnessed a rise in racing-parks with casinos. Texas, on the other hand, as seen a drop in revenue; at the moment Texas spends $4.37 billion annually on the gambling industry of its neighbor states such as New Mexico, Oklahoma and Louisiana. Industry analysts opine that the racetrack casinos could potentially add-up to 75,000 jobs, and about $8.5 billion in economic growth stimulus statewide. This is in addition to revenues accruing to the hospitality industry which includes hotels, restaurants among other entertainment avenues. Once the legislation passes through, it is expected that the city of Houston will to benefit the most.
However, there are those who are arguing against the approval of the gambling law. According to the think-tank; Texas Public Policy Institute, up-to 27 out of the 57 counties with legalized casino gambling in the US experienced loss of jobs and a 10% – 20% reduction in local business. Case in point is the Atlantic City, where up to 50% of the city’s retail businesses and eateries shut-down within 10 years of legalization of the gambling industry. This is in addition to an increase in the number of violent crimes, which went up 13% among the counties with casinos that were at least 4-years in business.
Despite this sentiment, the gaming industry is exuberant and insistent that the benefits far outweigh the shortcomings. They are of the view that Texans should be left to choose the level of gaming standard they want; whether it will be casino games, slot machines or video terminals as well as the venues they want authorized. Supporters believe that going by the recent poll numbers a clear 80% of Texans support the referendum while 64% support expanded gaming limits in the state.