The Alabama Senate Tourism Committee recently voted 9-1 for Senate Bill 293, a constitutional amendment, and the more detailed Senate Bill 294. The bills would allow five new casinos, two satellite casinos, sports betting, a state lottery and a regulatory commission.
State Senator Greg Albritton explained, “This is not a gaming expansion. This is a gaming control bill, so that the state exercises its sovereignty over this industry, just like it does the chicken industry. Just like it does the construction industry. Just like the banking industry. It exercises a sovereignty and it regulates the operations. It controls the growth in locations and it taxes them.” Albritton added the only expansion of gambling in his bills is the lottery, which would support education scholarships.
The legislation is similar to a measure the Senate passed last year, but it didn’t receive enough support for a vote in the House. If three-fifths of senators and representatives approve it, the constitutional amendment would appear on the November ballot for a voter referendum. Casino and sports betting revenue would be taxed at 20 percent. Albritton said gambling revenue could produce $750 million to $800 million per year, to be distributed among mental health services, broadband expansion, rural health care, road and bridge projects and state parks and historical sites
The bills would create an Alabama Education Lottery with revenue going to a new Alabama Education Lottery Trust Fund. Albritton estimated ticket sales would generate $160 million to $225 million per year, with 99 percent “appropriated for a scholarship or other program to support educational attainment or fulfillment of the state’s workforce needs.” Unclaimed lottery prizes would be spent on K-12 schools the state considers failing.
The legislation also would establish a gambling commission that would award a single license for casinos at Greenetrack in Greene County, Birmingham Race Course, Victoryland in Macon County and Mobile County Greyhound Racing Facility.
A casino in either DeKalb or Jackson county would be operated by the Poarch Band of Creek Indians under a compact between the governor and the tribe. The compact would allow the tribe to add blackjack, roulette and craps at their three electronic bingo casinos in Atmore, Wetumpka and Montgomery, in addition to a new casino in northwest Alabama.
The measure also would allow satellite casinos with a limited number of electronic games in Houston County and Lowndes County.
Alabama Citizens Action Program Executive Director Joe Godfrey said contrary to what Albritton said, the plan would expand gambling. “Then on top of that, the senator even acknowledged that the lottery would be an expansion. So, in those ways, it’s expanding tremendously,” Godfrey said.
But Albritton noted his proposal would cap the number of casinos in the state and provide control over the electronic bingo casinos now operating under local constitutional amendments−even though the Alabama Supreme Court ruled electronic bingo machines are illegal slot machines. Albritton said, “Does anyone know how many casinos are in operation Alabama now? All the operations are going on now. Nothing comes into the state, whether that the Poarch Creeks, whether that be Greene County, whether that be Lowndes County, the state does not receive a penny.”
State Senator Del Marsh, chairman of the Tourism Committee, said there is no issue he hears more about in his district. “The legislative process, it is what it is, but I would encourage my House counterparts to do all they can to get leadership to bring this up and before the House. Make changes. Go through this process. But thus far it’s been the Senate has been doing the work on this. And I would hope today we continue to keep something alive to be discussed,” Marsh said.
Several individuals spoke against the legislation prior to the vote. Among them were some who noted electronic bingo venues would close, causing the loss of jobs. Lobbyist Ryan DeGraffenried Jr., who represents a bingo operation in Greene County that would close, said, “It’s our contention this bill is picking winners and losers again. We ask this body and the entire legislature, consider letting the market dictate who survives down there.” He said the bingo venue has 70 employees and was planning to open a new, larger facility that would employ more than 200 people and offer two restaurants and a music venue.
State Rep. Kelvin Lawrence said although Lowndes County is designated for one of the two new satellite casinos, one of the two electronic bingo casinos in the county would have to close. He said, “It’s just an effort to appease us, but it basically puts us on life support. We’re talking about a community that is underprivileged, 90 percent poverty. It would be a catastrophe if those facilities are closed. This bill would restrict the current operation and limit the number of machines that we can currently have in our facility. It would also decrease the current jobs that we have. We shouldn’t be as the legislature in the posture of picking winners and losers, especially in a free market economy.”
Alabama is just one of five states—along with Nevada, Utah, Alaska and Hawaii—without a state lottery.
