Alabama lawmakers have made many attempts to pass lottery legislation. This year a bill co-sponsored by 70 House members was moving forward when Covid-19 hit and the session was shortened. Recently, however, members of Governor Kay Ivey’s Study Group on Gambling Policy held a virtual meeting about a state lottery. Ivey created the 12-member group, chaired by former Montgomery Mayor Todd Strange, in February, to review expanding gambling in Alabama.
The group met with New Mexico Lottery Chief Executive Officer David Barden, who said an Alabama state lottery could generate about $1 billion in annual sales, providing about $280 million to the state. Barden, who also has experience with the South Carolina and Arkansas lotteries, discussed online ticket sales, flexibility regarding future changes and transparency about how lottery proceeds are spent.
Mississippi Lottery Communications Director Meg Annison told the group the Covid-19 pandemic decreased lottery revenues temporarily but sales are returning to normal levels; average total sales are about $10.4 million a week. Annison said between its launch on November 25 and mid-April, the Mississippi Lottery had transferred $37 million to the state treasury. The first $80 million goes to road and bridge projects and the remainder to education.
The study group also heard from Troy Woodward, a senior policy advisor for the Office of Indian Gaming, who explained more about gambling compacts between states and Native American tribes. The Poarch Band of Creek Indians, operators of three electronic bingo casinos in the state, has proposed a compact with Alabama giving the tribe exclusive rights to offer Class III games at its three casino resorts on tribal lands and at two new locations in the state. The new casinos would pay state license fees and a 25 percent tax on net gambling revenue.
The study group will hold another meeting on June 5.
