The American Gaming Association released its annual report on the casino industry recently, and after analyzing the findings one thing remains clear: There’s a staggering amount of Texas money crossing the state line due to Texas imposing restrictions on casino operations.

There’s only one legal casino in the Lone Star State, and it’s a sorry excuse for one. The Lucky Eagle in Eagle Pass is a Class II establishment, which means the number of games it is allowed to offer is limited. No craps, roulette, blackjack or other standard casino games. All it’s allowed is a poker room (which is admittedly decent) and slot machines.

Texas shares borders within the United States with three states — New Mexico, Oklahoma and Louisiana. New Mexico is home to 21 casinos and five racetracks. Oklahoma has a staggering 95 casinos and Louisiana has 21, including a strategically located Harrah’s in the heart of New Orleans.

Most of these casinos are conveniently located close to the border, particularly in Louisiana. It’s good business to set up shop a drivable distance from Dallas, Houston or San Antonio.

It’s approximately 300 miles to Shreveport, La., from Dallas. Shreveport was ranked the 11th most-profitable casino market in the country in 2007, claiming $844.13 million in revenue. That’s a lot of money for a town of 375,000.

Lake Charles, La., is about five hours from San Antonio and two hours from Houston. The Lake Charles casinos offer complimentary shuttle rides to and from its establishments to attract the South Texas money. It’s working, as Lake Charles produced revenues of $640.63 million in 2007, an amazing number considering that outranks the casinos in downtown Las Vegas by nearly $8 million.

Combine these two markets, and Louisiana is cashing in for more than $1.5 billion in revenue.

None of the Oklahoma or New Mexico casinos crack the Top 20 in revenue, but there’s a good reason for that. The majority of the casinos in those states are Native American-owned and don’t have to report revenues in the same manner that state-licensed casinos do.

But you can bet that they are cashing in, also.

Chuck Blount | 210SA contributor