LEGISLATURE '07AUSTIN – Advocates for expanded gambling in Texas say they have a new card up their sleeves: a proposal for casinos, video slot machines at racetracks and gambling on Indian reservations that would raise money to send students to college.

As always, they face opposition from social conservatives in the Legislature, and with the state expecting a huge budget surplus, the lure of new revenue isn't as strong. But advocates of the combined proposal said Tuesday that they think they can change the tenor of the gaming debate in Texas.

"We're creating the largest economic development bill ever to come before the Texas Legislature," said Jack Pratt, a hotel and casino mogul leading the charge. "There's a pie here that's large enough that everybody can share it."

The bill proposed by the Texas Gaming Association would merge resort-style casinos, slot machines at racetracks and legalized gambling at state Indian reservations – three often-competing desires that have divided support for gaming. Backers say it would generate close to $1.6 billion annually to create a college tuition fund.

Previous proposals would have dedicated funds to school finance, but lawmakers solved that, at least temporarily, in a special session this year. Gambling supporters hope to latch on to growing concerns about steep increases in college tuition.

But even with the possibility of a united front, and the surprise support of one North Texas lawmaker who has long resisted gambling, opposition remains strong. Legislators and lobbyists alike acknowledge that any expansion of gambling is a long shot, particularly with a robust surplus.

"Anytime you're talking about expanding gaming operations in Texas, it's always an uphill battle," said Sen. Rodney Ellis, a Houston Democrat who has filed a casino gambling bill in every session since 1993. "It's a battle during the best of economic times and during the worst of economic times."

The gaming association, which is seeking a sponsor for its bill, is advocating opening the door to 12 resort-style casinos in Texas, which would have to compete for licenses based on their economic impact. Dallas County and Harris County would both get two casinos, lobbyist Chris Shields told The Dallas Morning News last week. Bexar, Tarrant and Travis counties would get one apiece, as would Galveston and South Padre Island.

Locations of the three remaining casinos would be decided by a Texas Gaming Commission, created as part of the proposal to oversee casinos; gaming at Texas' Indian reservations; and "video lottery terminals," which resemble slots, at the state's existing horse and dog tracks.

Advocates estimate the proposal – which would require voter approval for a constitutional amendment – would bring in $3.2 billion in tax revenue to the state and an additional $800 million to city and county governments. The gaming association's bill would allocate close to half of the state's revenue, $1.6 billion, into a financial aid fund to pay for college for every Texas high school graduate who meets certain minimum requirements. The rest would go to the state's general fund.

Gambling opponents, such as Suzii Paynter, director of the Baptist General Convention of Texas' Christian Life Commission, say it's a mismatch to link education funding to "volatile gambling dollars."

"It would be a terrible mistake and a trick on families to say to them that money that's made in an undependable revenue stream ... would be worthy of funding something as important as higher education," she said.

But Sen. John Carona, a Dallas Republican and Southern Baptist who has long opposed casinos, said he has finally decided it's Texas' time. Legislators don't have to like it, but they can't isolate their constituents from gambling anymore, he said, whether it's online or an hour's drive away.

"This is a no-brainer," said Mr. Carona, who will support casino gambling only if it's done with the limited resort-style destinations outlined in the gaming association's proposal. "It's probably rather nearsighted not to recognize the public's strong support for legalized gambling."

E-mail eramshaw@dallasnews.com