TRS, $100 Million, & An Itch To Gamble
September 25th, 2007 at 11:26 pm
The State of Texas has a strict policy against gaming, especially by Native American tribes, for profit.
The Tigua tribe of El Paso saw its Speaking Rock Casino closed down in 2002 thanks to the efforts of the Texas Attorney General at the time, (now U.S. Senator) John Cornyn. The Alabama-Coushatta tribe in East Texas also sought the legal right to run a gambling enterprise, but to no avail. Yes, gambling in Texas remains unsullied by tribes operating casinos. If you’re not a foreign company with a contract to run the Texas Lottery, you can pretty much forget about legally making money off of gambling in the Lone Star State.
However — if you happen to be a retired Texas teacher, you may be about to get a piece of the action. In late July, the board of the Teacher Retirement System (TRS), voted to put up to $100 million of its $112 billion retirement fund into a company called Colony Capital, LLP — which, the board says, will use the money along with cash from other investors and pension funds to acquire Station Casinos — a “Native American gaming management company” with a casino in Las Vegas. While you’re there, be sure and visit the Texas Station.
Now, why would the TRS board sanction such an investment? The simple reason is that funds like TRS are charged with finding the best return on their investment. In fact, Texas pays TRS investment professionals a hefty annual salary, plus bonuses to do just that. And the return on the casino investment for TRS is expected to be a whopping 19 percent annually for six years.
I mean, if that’s not sound investing, then what is? It’s not like the casino industry is tanking.
The problem here is the evident hypocrisy of Texas’ public trusts benefiting from Native American gambling enterprises while the state denies its own tribes the right to run their own gambling operations. Why is it okay for Texas teachers to fund their retirement in part from the profits of a Vegas casino, but it’s not acceptable for Texas tribes to employ people and build communities by running casinos on their lands?
Now, we’re aware of the dangers involved in the sin part of sin taxes, but wasn’t it Jesus who said, “Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eye.”
September 26th, 2007 at 7:11 am
Just because teachers do something wrong does that mean everyone else has to follow suit? Cody Garrett can also go to Las Vegas or anywhere he wants to to gamble. That doesn’t mean the state of Texas has to sanction his gambling. Hooray for Texas!
September 28th, 2007 at 6:08 am
Ever since New Hampshire started its lottery in the 1970’s states have been sure to trot out “the children” and “the elderly” as the supposed beneficiaries of gambling. As thought giving a pittance to those groups somehow cleanses the dirty money. They forget the bulk of that revenue comes from those least able to afford to lose it. And the money laundering that takes place in casinos is legendary. It salves teh conscience of those who vote for such things to say it will be “for a good cause”.
So why not legalize prostitution as long as it’s “for teh children”?
September 30th, 2007 at 11:44 am
Have any of you people been across the state line to ANY casino Parking lot? Row, After Row of TEXAS CARS!!! GULF TOWNS are thinking of giving casino Boats there own section, en route to international waters…When are Texans goign to get it thru their head that we go else where to gamble, and WE TAKE OUT TX MONIES WITH US!! We are losing out on SO MUCH TAX Revenue, and more!!
October 21st, 2008 at 4:15 pm
I really don’t know whats happening with Texas but I do know that the state is really missing out by banning Tribal Casinos. Why I say this, for one reason jobs. I am living in Seattle and I know when I need a job and to make some money I go and get a job at one of these Tribal Casino and work for a year or however long it takes to make my cash, the tricky part is not gambeling you can win but you need know when to quit. I save all my money I make and I tell you, you can make really good money at these casino. Enough to go and spend a couple of years in another country and the bonuses checks you recieve awesome. You Texan don’t know what your missing letting rich jealous people run your state their in it for themselves and no one else. I know I will never go to Texas whats in Texas that makes it exciting, you have to be rich and conservative to enjoy Texas if your poor you can get in trouble with the law and I heard the laws there are one of the worst in the country.