Alabama-Coushatta Tribe to Build Casino Off Reservation, Testing Texas Gambling Laws

Nacogdoches, Texas — The Alabama-Coushatta Tribe announced plans this week to build a casino resort on land northeast of Houston that it owns but is not part of, or directly connected to, its reservation.

The project marks the first time the East Texas tribe has attempted to expand gaming operations beyond its reservation boundaries. Tribal leaders say they are acting under recently revised federal rules from the Biden administration that loosen restrictions on off-reservation gaming projects. The regulations, finalized earlier this year, streamline the process for tribes to apply for federal approval to build casinos on newly acquired land.

Currently, the Alabama-Coushatta operate Naskila Casino on their reservation near Livingston, offering Class II electronic bingo machines that closely resemble slot machines. Expansion off-reservation could pave the way for a full-scale casino resort, potentially reshaping the gambling landscape in Texas.

State officials have been quick to push back. A spokesperson for Attorney General Ken Paxton’s office said it “will investigate and work to stop any illegal gambling operation,” but did not directly address the tribe’s plans. Historically, Texas has fought tribal casinos: in the 1990s, then-Attorney General John Cornyn took both the Alabama-Coushatta and the Tigua tribes to court, arguing their gaming facilities violated state law.

The announcement also comes as Texas faces mounting questions about its uneven enforcement of gambling bans. While Paxton has promised to block tribal expansion, his office has not taken action against online “prediction markets” like Kalshi, despite lawsuits from other states alleging the company is illegally offering gambling services.

For the Alabama-Coushatta, the proposed resort represents both a high-stakes gamble and a potential windfall. For Texas officials, it reopens a decades-old battle over who controls the future of gaming in the state.