Texas Tribe Breaks Ground on Casino, But Expansion of Gaming in Texas Remains Doubtful

posted on 6.22.2026

Texas stations may have seen last week’s headlines about the Alabama-Coushatta Tribe of Texas breaking ground on a new casino, the fourth such tribal-owned facility in state. No Texas tribe has a legal compact with the State of Texas to offer Class III gaming such as banked card games, slot machines, and roulette. Instead, the tribes offer Class II gaming onsite such as bingo (pull-tab and electronic) and non-banked card games.

What makes this latest development interesting is that the State of Texas fought the tribe’s ability to open such a facility for four decades and lost. A 2022 U.S. Supreme Court decision allows the Naskila Casino Resort to legally operate 300 electric bingo machines on tribal trust land in Leggett, not on the tribe’s Livingston reservation. That means the new casino will be located on U.S. 59 about 90 minutes north of Houston. The tribe should see at least some of the gaming traffic out of Houston that normally would be heading to legal Class III casinos in Louisiana. 

Will a fourth tribal-owned facility force the Texas Legislature to take another look at expanding gaming?  

An expansion of gaming in Texas would require voter approval.  Recent Texas polling shows broad, bipartisan majority support for allowing destination resort casinos, with backing consistently ranging from 56 to 73 percent of likely voters across multiple surveys. 

TAB expects the filing of bills allowing a small number of commercial Class III casinos, just as there have been in recent legislative sessions.  Commercial casino advocates have spent tens of millions lobbying Texas lawmakers this decade to see that a public vote happens. Other legislation in recent sessions has sought to allow online gaming and sportsbook at sporting facilities in Texas.  Gov. Abbott made a stir in recent years by telling the Texas Take Podcast “I don’t have a problem with online sports betting.”

Abbott’s comments have no real downside for him as statehouse-generated ballot measures do not require the governor’s signature – it is the Legislature expressing its will. 

But there are two chambers in the statehouse. While constitutional amendments and supporting legislation allowing Class III gaming have cleared the Texas House, such legislation has died in the Texas Senate, most recently in the 2025 Legislature. 

It demonstrates why many consider a Texas Lt. Governor to be the actual most powerful policy maker in the state. The Lt. Governor has the sole authority to determine whether a bill gets referred to committee, let alone be raised on the Senate floor for debate and a potential vote. Lt. Gov. Dan Patrick, R-Houston, has said repeatedly that such measures have little to no support from GOP members of the Texas Senate. 

A gaming-related legislative effort that could see Texas Senate support, however, would address the legality of next generation slot machines. The devices look like those in Las Vegas and in legal casinos in nearby states. They have popped up in bars, gas stations, and salons in locales across Texas.  

A state district court deemed them legal saying they are games of skill, not games of chance, but opponents are vowing to shut down such operations by any means, including a legislative one. 

Bill filing for the 90th Texas Legislature opens on Monday, Nov. 9, 2026.  

Questions? Contact TAB’s Michael Schneider or call (512) 322-9944. 

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