The Alabama-Coushatta Tribe has announced that it is building a new casino resort on land owned by the tribe but not located on its reservation.
The proposed Class II casino would be built near Leggett, Texas, on land that is not on or contiguous to the main reservation.
On December 6, 2023, the Biden administration adopted new rules allowing tribes to acquire and transfer land into trust for the development of casinos. The rules went into effect on January 11, 2024.
These rule changes were opposed by state and local authorities because the process by which tribes would be allowed to acquire land to develop casinos would circumvent local stakeholders.
Until the adoption of this rule, tribes were generally prohibited from this activity.
Cecilia Flores, chairwoman of the Alabama-Coushatta Tribal Council, told Polk County Commissioners Court on Tuesday that the National Indian Gaming Commission had approved the tribe’s request to build the Naskila Casino Resort. The National Indian Gaming Commission has oversight over recognized tribes in the United States.
The site of the new casino resort would be on the Alabama-Coushatta Off-Reservation Trust Land, which abuts Highway 59 between Leggett and Seven Oaks.
The tribe currently runs the Naskila Casino on the reservation. It operates Class II machines, which resemble slot machines and include bingo and non-banked card games.
Texas Scorecard asked Attorney General Ken Paxton for comment on the legality of the proposed casino and whether his office would intervene.
“The Office of the Attorney General will investigate and work to stop any illegal gambling operation,” an AG spokesperson said. “Attorney General Paxton will continue to champion the rule of law, protect the people of Texas, and hold accountable anyone who breaks the law to further an illegal gambling scheme.”
Rob Kohler, a consultant with the Texas Baptists’ Christian Life Commission, told Texas Scorecard, “State gambling laws rely on local authorities and the Attorney General for enforcement, and to date, the Attorney General’s office has been absent, missing the game. Even before this planned development, commercial, online poker and so-called daily fantasy sports games have exploded in the state. It’s our hope that Paxton will come off the sideline and confront these unlawful expansions.”
This hasn’t always been the case in Texas. During his time as attorney general, U.S. Sen. John Cornyn took the Alabama-Coushatta and Tigua tribes to court when they worked to establish casinos in Texas in contravention of state law.
Anti-gambling activists in Texas have long warned that Indian tribes pose a threat to gambling and specifically Class III casino gambling in the state. Most recently, the Kickapoo Traditional Tribe of Texas warned the Texas Senate that online lottery ticket sales had opened the door to the tribe offering full-blown casino gambling.
This development comes at a time when gambling lobbyists are working overtime to gain a footing in Texas.
Online lottery ticket sales were discontinued during the 2025 legislative session. Earlier this month, the Texas Lottery Commission was abolished, and oversight was transferred to the Texas Department of Licensing and Regulation.
But online gambling, rebranded as “prediction markets,” has proliferated, potentially opening the door for tribes to again insist that Class III, Las Vegas-style casinos be allowed. If the Naskila Casino Resort is not challenged, such casinos may not be confined to reservations but could dot the Texas landscape.
Paxton has not intervened to regulate betting markets such as Kalshi, which allows individuals to purchase event contracts—a highly liquid investment asset—to place bets on sports, political, economic, and cultural outcomes.
Additionally, Texas has illegal card rooms operating throughout the state.
The Alabama-Coushatta Tribe referred Texas Scorecard to a press release when asked for comment.
Polk County Commissioners and the National Indian Gaming Commission did not respond to requests for comment.
