Texas is known for its hardline stance towards the gambling industry. Lawmakers here have worked hard to ban virtually all traditional forms of gambling in the state. That could soon change, though. Las Vegas Sands is working hard to finally allow legal casinos in Texas.
Many are excited to see Texas make this change. There are still a huge number of questions that surround this entire situation, though. Today, we’ll talk about what LVS has planned in the Lone Star State.
Here’s what we know about this situation!
The Past Ten Months Have Been Tough for Las Vegas Sands
Most gambling fans have heard of Las Vegas Sands before. This company was founded decades ago by Sheldon Adelson. It has since grown into one of the most powerful gambling companies in the world.
Prior to 2020, this company was doing fantastic. LVS owns and operates casinos around the world. It’s major casino-resorts in Las Vegas and Macau were bringing in an incredible amount of money every single month. Then, in March of last year, all of the casinos around the US were ordered to shut down.
Places like Las Vegas saw their revenue figures immediately plummet. Casinos here remained closed for months and no one could accurately say when things would turn around. Finally, in June, the casinos in Las Vegas began to open back up.
Unfortunately, casino revenue from Las Vegas and Macau has been extremely low over the past twelve months. As a result, Las Vegas Sands began closing their biggest venues for certain times of the week. Company officials even claim they are interested in selling some of their biggest casino-resorts entirely.
To make things worse, CEO Sheldon Adelson passed away earlier this year. It was a huge blow for Las Vegas Sands and only intensified what has already been a difficult time. LVS is still pushing hard for recovery and has some big plans for the future.
That includes a break into Texas. This state is known for its tough gambling laws, yet LVS seems to feel it can make a change here.
Will We See Legal Casinos in Texas in the Next Few Years?
Despite the complications they’ve faced, US casino companies continue looking to expand. We’ve seen a large number of major casino deals take place over the past few months. Many of these companies are working hard to break into developing casino destinations.
That is certainly the case with Las Vegas Sands. This company has been doing everything it can to increase revenue right now. Lately, officials within LVS have been pushing hard to allow commercial casinos in the state of Texas.
Lawmakers in Texas haven’t embraced this idea. Here, not even tribal casinos are able to legally operate. Residents in this state often flock to nearby Oklahoma to play at the state’s many world-class casinos.
Las Vegas Sands is now arguing that legalizing casinos will help to keep money in the state of Texas. It should also help to bring in more visitors from around the country. Governor Greg Abboud now claims it should be up to state voters on whether or not to allow casinos.
“All that will happen in the Legislature this next session is for the state Legislature to put it on the ballot and to let voters decide,” Abboud said. “And then business leaders and community groups and the policymakers need to get involved in the process and make sure that this is done the right way.”
Anti-gambling groups are already pushing against the idea of legal casinos in Texas. There are some that feel it will result in an increase in crime and other societal issues. The state needs money right now, however, and casinos could be an effective way to generate revenue.
It’s an interesting time for the country’s gambling industry. We’ll offer more information on this situation over the next few months!
US Casino Revenue is Still Dropping Quickly
The events in 2020 had a devastating impact on the US casino industry. Never before have casinos around the country been forced to close down. Even today, this industry has a long way to go before it gets back to the revenue seen in 2019.
There was a time when it seemed as if US casino companies were bouncing back in a big way. Travel restrictions began to loosen during the summer months and more visitors started heading to casino hubs such as Las Vegas. As the colder winter months approached, however, this trend came to a complete halt.
We’re still beginning to see the effects that 2020’s fourth quarter had on casino companies. Over October, November, and December, Las Vegas Sands saw an incredible 67% drop in revenue. It’s a larger dip than many analysts predicted.
This company managed to bring in just $1.15 billion over Q4 of 2020. That’s down considerably from the $3.51 billion seen in 2019. It goes to show how difficult the times are even for the largest gaming operators in the country.
Other casino companies including Wynn Resorts and MGM Resorts are also seeing massive revenue drops. It’s unclear when exactly this trend will change. Perhaps Texas could help to turn things around for these companies. We’ll be sure to offer updates over the next couple of months.
Do you think we’ll see legal casinos in Texas anytime soon? Let us know in the comments section below.