Alabama Governor Kay Ivey says she wants “the facts” before she moves forward on a Class III gaming compact with the Poarch Band of Creek Indians or a state lottery.
Ivey said, “Anytime I ask people how much money the lottery would bring in, they say, ‘I think about … .’ We’ve got to have the facts to make a decision. We just want the facts about how much monies the state can expect to gain if we just do a lottery, or if we do expanded gaming or if we do a compact. And what the heck does a compact look like? What are the components of a compact? Let’s address the issue with all the facts. Nobody has the facts.”
Ivey has commissioned a state review of the economic benefits and tax revenue projections that could result from legalizing a lottery and/or signing a gaming compact with the Poarch Band, who operate Class II casinos in Atmore, Montgomery and Wetumpka, and dog racing tracks including VictoryLand in Macon County and GreeneTrack in Greene County.
Poarch Band Chairman and CEO Stephanie Bryan said a gaming compact would produce $350 million in annual tax revenue for the state, which would receive $750 million from license fees, economic development and exclusivity payments for Class III gaming.
Not everyone is convinced a gaming study is worthwhile. State Rep. Steve Clouse, chairman of the House Ways and Means General Fund, said, “Personally, I don’t see the need to put the lottery in the study. There are 45 other states that have studied it. We’re at the point where it’s getting ridiculous. We have citizens from all four corners of the state and all four borders that are crossing state lines to buy multistate Powerball tickets.”
Clouse said he plans to introduce his lottery in the next two weeks and hopes the issue will appear on the November ballot. “The November election when we’re voting for president is the highest turnout. I think that’s where it ought to be,” Clouse said. He estimates a state lottery would generate $167 million in annual tax revenue, with most of those funds going toward pre-kindergarten and college tuition programs.
Ivey said she recently had a conversation with Clouse about his lottery legislation. “I said ‘Steve, I’m not asking you to withdraw your bill. I’m telling you what I’m going to do, and I invite you to consider what I’m going to do, and maybe join me. If it turns out like you think it will, it will be a stronger case for you.’”
The governor said she expected gambling report by the end of the year. Senate President Pro Tem Del Marsh commented he’d like to a see a report within the next six months.
Under the state constitution, the governor doesn’t have to approve a lottery amendment; it would be determined in a statewide voter referendum if it passes the legislature. However, Ivey would responsible for negotiating a compact with the Poarch Band.
Alabama is among the few states without a lottery, and also doesn’t have commercial casinos. A lottery bill passed the state Senate last year, but stalled in the House.
In the meantime, former state Senator Gerald Dial recently held a press conference to sow doubt about the legal status of the Poarch Band. “What if they’re not really legal? Would this not be the biggest scam on Alabama?” Dial said.
He passed out letters written by various government officials between 2009 and 2011. One of the letters, from then U.S. Department of the Interior Solicitor David Bernhardt, stated, “The record simply does not support the Band’s existence as a separate tribal entity with a government relationship with the United States.” Bernhardt said the tribe should not have authority to offer gambling in Montgomery, where it currently operates a casino.
At the press conference, Dial said the tribe has “spent billions all over the U.S. and outside of the U.S. If you have a child with college debt, that should bother you. The Poarch Creeks and their money have been directly responsible for killing lottery bills that would have paid for that college. And they put that money into other states, to help their kids go to college debt free.”
State Senator Jim McClendon, who also spoke at the press conference, said he’s introduced legislation that would prevent the Poarch Band and all other gaming entities in the state from contributing to political campaigns. “I am not making claims of corruption, but we must be very wary of the appearance of corruption. I’m not making claims of undue influence based on monetary donations, but we must be very wary of undue influence. Now is the time to put a stop to this invasion of gambling dollars,” he said, noting the Poarch Band has contributed more than $4.7 million to elections since 2013. He also blamed the tribe for killing his recent lottery bills.
McClendon added, “I expect there will be legal challenges to this legislation. Rest assured, it will come from those with big bucks. Since a number of people in the Senate have taken gambling money, I’m sure they will speak up. It’ll be interesting to see what position they take. There is a lot of money flowing from gambling interests and I don’t think it’s healthy at all.”
Last year, state Senator Greg Albritton and Senate President Del Marsh stopped McClendon’s lottery bill that had a lot of support among other lawmakers, since it cut all interested parties, including the Poarch Creeks, in on the games. Another bill that would have allowed VictoryLand and GreeneTrack racetracks to operate the same games as the Poarch Band’s casinos also was stopped.
Dial also serves as the spokesman for Poarch Creek Accountability Now. He said the group hasn’t disclosed its funding sources, which is legal, due to fear of retribution from the tribe.
