Alabama-Coushatta to Open Temporary Casino as Permanent Texas Resort Breaks Ground

After four decades of legal skirmishing with the state of Texas, the Alabama-Coushatta Tribe is preparing to open its second casino — a temporary facility in Leggett, roughly 80 miles north of Houston — this summer, while simultaneously breaking ground on the permanent resort that will eventually replace it. The dual-track plan, with construction on the permanent property scheduled to begin June 18, 2026, would mark one of the most significant expansions of tribal gaming in Texas since the U.S. Supreme Court's 2022 Ysleta del Sur Pueblo v. Texas ruling reset the legal landscape for the state's three federally recognized tribes.

The Alabama-Coushatta's existing operation, Naskila Gaming on the tribe's reservation in Polk County, has run electronic bingo machines for nearly a decade despite repeated efforts by Texas Attorney General offices to shut it down. The Leggett expansion takes the tribe's gaming footprint off-reservation in a way that until recently would have been legally unthinkable in Texas. That it is now proceeding reflects how thoroughly the 2022 ruling — which reaffirmed that the tribe's autonomy to regulate gambling that is not prohibited by Texas law flows from its federal Restoration Act — has reshaped the calculus.

From Naskila to Leggett

The Leggett site is structured as a phased build. A temporary casino containing roughly 300 electronic gaming machines is expected to open during the summer, providing immediate revenue while the permanent resort is under construction. Tribal officials have indicated that the permanent property will be substantially larger and include the hospitality amenities — hotel rooms, food and beverage outlets, entertainment venues — that have become standard at Class II destinations across the country.

Texas has long been the largest U.S. state with no commercial casinos and only narrowly scoped tribal gaming. The Alabama-Coushatta and the Kickapoo Traditional Tribe of Texas have built their operations on the Class II model, which under IGRA does not require a tribal-state compact. The Ysleta del Sur Pueblo, the third federally recognized tribe in the state, halted gambling at Speaking Rock during years of litigation and reopened the property as a live-music venue, though the 2022 Supreme Court decision opened a clearer path forward.

Class II as the engine

The distinction between Class II and Class III gaming matters acutely in Texas, where the absence of a state compact means tribes must rely on the games IGRA authorizes without state agreement. Class II gaming, as our explainer on Class II versus Class III details, consists primarily of bingo and bingo-derivative electronic games regulated directly by the tribe and the NIGC. Modern Class II machines have evolved dramatically and, to the casual player, look and feel similar to traditional slot machines, even though the underlying mechanics differ.

For the Alabama-Coushatta, the Class II framework is what makes the Leggett project possible without further negotiation with Austin. The state continues to take a restrictive view of tribal gaming — proposed legislation such as HJR156, which would authorize the Kickapoo to negotiate a Class III compact, has consistently failed to advance — and a near-term shift in that posture appears unlikely. By focusing investment on Class II, the tribe is building within the legal envelope the Supreme Court ruling clarified, rather than waiting on the state legislature.

The 2022 Ysleta del Sur Pueblo decision did not legalize Class III gaming in Texas. What it did was reaffirm that the state cannot use general anti-gambling policy to override tribal authority over games that Texas law does not categorically prohibit.

Houston demand, regional impact

Leggett's appeal is geographic. The site sits roughly 80 miles north of Houston, the largest U.S. metropolitan area without a nearby tribal or commercial casino. The closest comparable destination today is the Coushatta Casino Resort in Kinder, Louisiana — operated by a separate federally recognized tribe, the Coushatta Tribe of Louisiana — which has long drawn Texas players across the state line. The recently opened Legacy Tower at Coushatta underscores how robust that out-of-state demand has been.

For the Alabama-Coushatta, capturing even a fraction of the Houston gaming spend that currently leaks to Louisiana would represent a material revenue gain. The tribe has emphasized that proceeds from Naskila Gaming fund education, health care, infrastructure, and elder services, and the Leggett expansion is expected to deepen that funding base. Regional planners in East Texas have been generally supportive, citing job creation and tourism upside.

What to watch through 2026 and 2027

Three questions will shape how the Leggett story plays out. The first is the State of Texas's response: while the 2022 Supreme Court decision narrowed the state's leverage, it did not eliminate the state's ability to litigate around the edges, particularly on the question of which specific games qualify as Class II. The second is construction execution — the temporary-then-permanent model has been used successfully by tribes elsewhere, but it depends on disciplined phasing and financing. The third is the broader implication for other Texas tribes, particularly the Kickapoo and Ysleta del Sur Pueblo, who will watch Leggett's regulatory experience closely.

For now, the practical effect is concrete: by late summer, a market that has been functionally off-limits to gaming for generations will have a new Class II property open for business. Comparisons across the regional market can be tracked through the tribal property comparison tool, while state-level developments are summarized on the tribal gaming directory.