Texas Bill Would Subsidize Hurricane Insurance With Casinos

A Texas lawmaker wants to raise money to strengthen the state’s windstorm insurance by allowing casinos along the Gulf Coast. Rep. Joe Deshotel’s bill would allow six casino licenses in six counties. Governor Greg Abbott (l.) killed a bill that would have raised insurance costs to pay for that. But he’s also opposed to legalizing gaming.

Texas State Rep. Joe Deshotel filed a bill on December 7 that would fund the state’s Texas Windstorm Insurance Association (TWIA) by allowing casinos along the Gulf of Mexico in such coastal cities as Galveston. The legislative session begins January 8.

Deshotel’s bill would authorize the Texas Lottery Commission to issue six casino licenses in six counties such as Galveston and Jefferson and tax them at a rate of 18 percent to fully fund the windstorm insurance, which could be used to assist victims of natural disasters.

This is not the first time Deshotel has filed such a bill. He tried three years ago. He told the Galveston County Daily News: “Just like the lottery, where a portion of funds go to public education, this is a need that’s underfunded.” He added, “If the lottery helps education, we can help with the problem of windstorm, which is disproportionately paid for by the coastal counties.”

Several months ago, Governor Greg Abbott successfully killed a proposal by the association board to raise rates on the insurance.

The representative acknowledged that he faces something of a personal Alamo from both parties. House Bill 494—and so far, he is the only sponsor— would not actually legalize gaming in the Lone Star State, but would put the issue on the ballot to amend the state constitution.

The lawmaker argues that the state is losing gaming money to other states. He told 12News “The fact that there is not a casino in Texas, it doesn’t stop people from going to casinos in droves.” He added, “You see bus after bus of seniors right across the border in Louisiana.”

He continued: “The voters will have to make the ultimate decision, but this bill, if passed, would give the voters an opportunity to vote on the casino here in the state of Texas.”

Although casino gambling is unknown in Texas today, it wasn’t always so, and you don’t even have to go back to the days of Old West. In 1923 the Balinese Room was built on Galveston Island, one of the places where gaming would be legal if the constitution is amended. The casino went about 600 feet into the Gulf.

The Balinese Room nightclub operated gambling illegally, and even had a series of cleverly constructed doors designed to slow down the Texas Rangers when they showed up to raid it—to slow them just long enough for patrons to have a chance of escaping arrest—and to toss slot machines into the water so they couldn’t be used as evidence.

Ironically, the last traces of the historic building was wiped out by Hurricane Ike in 2008.

Recent Articles

History Playbook

On This Day In Sports History

On May 25, 1935, Ohio State sophomore Jesse Owens delivered arguably the greatest 45 minutes in sports history at the Big Ten track meet in Ann Arbor. Owens broke three world records and tied a fourth, setting new marks in the long jump (26′81/4"), the 220-yard dash (20.3 seconds), and the 220-yard low hurdles (22.6 seconds), while equaling the 100-yard dash world record (9.4 seconds). Despite his individual brilliance, Michigan narrowly edged out Ohio State for the team title, 48 to 43.5.

On This Day In Sports History

On May 24, 1918, Cleveland outlasted the Yankees 3-2 in a 19-inning marathon at the Polo Grounds. Stan Coveleski pitched a remarkable complete-game victory, but the hero of the day was Joe Wood. Having converted from a pitcher to an outfielder after his arm "went dead," Wood launched a game-winning solo homer into the left-field bleachers—his second home run of the afternoon—to finally seal the win for Cleveland.