The Alabama House of Representatives may not consider a lottery and casino bill for several weeks, said House Speaker Mac McCutcheon. “I think members are still educating themselves and they are still reading the bill,” he said, adding he wants a floor vote before the session ends May 30.
In the House, state Rep. Chris Blacksher will handle the bill which must pass with a three-fifths majority. It would allow a lottery, casino gambling and retail and online sports betting in the state. If the House passes the proposed constitutional amendment, it will be on the November 2022 general election ballot. Two companion amendments would create the Alabama Gaming Commission and outline distribution of proceeds.
Proceeds from legalized gambling would go toward public education, infrastructure improvements, broadband access and health and mental health services for rural areas. Also, 5 percent of lottery revenue would go to a fund for education retirees, until the fund reaches $100 million. In addition, profits would allow the state to reduce the state sales tax on groceries from 4 percent to 2 percent, starting in 2023; local governments could not raise grocery taxes.
Under the bill, the Poarch Band of Creek Indians would be allowed to offer the full range of casino games at their resorts in Atmore, Montgomery and Wetumpka. Currently, those resorts only offer electronic bingo. Poarch Band Chairman and Chief Executive Officer Stephanie A. Bryan stated, “This historic vote is the first step to empower Alabamians who deserve to have their voice heard on this issue, and be allowed to vote on a constitutional amendment.’’
Unless it’s tweaked in the House, the bill would authorize up to nine sites statewide, licensed and regulated by the Alabama Gaming Commission. Licensing would occur through a competitive bidding process. The current operators of greyhound racing tracks in Birmingham, Mobile, Greene County, Macon County and Houston County would have the right to make a final bid exceeding the highest bidder. The Poarch Band would have the right to make the final bid for the casino in DeKalb or Jackson County. The tribe would negotiate a compact with the state to share a portion of casino revenue. Each location could offer a retail sportsbook and partner with up to three online sports betting operators.
A study commission formed by Alabama Governor Kay Ivey issued a report in 2020 that found legalized gambling and a lottery could generate revenue of up to $700 million a year for the state, with $300 million from the lottery, $400 million from casinos and $10 million from sports betting. Ivey Press Secretary Gina Maiola said, “Governor Ivey wants to be able to support the final gaming proposal from the legislature. She has expressed this to Senator Marsh and others, and we still have some work to be done. She remains engaged and in conversations with Senator Marsh. Ultimately, we must be able to control and regulate gambling if it is going to be legal in Alabama, and the intention is certainly not to have a casino on every corner. The governor supports the people of Alabama having the final say.”
Senate Bill 319, sponsored by state Senator Del Marsh, started as a lottery only measure; it was narrowly defeated in the Senate in March, but it was amended to include casino gambling and sports betting language. Then the bill passed in a 23-9 vote.
Lottery legislation has not had an easy time in the Alabama legislature. In a special session in 2016, the House amended a lottery bill to make it paper-only, which killed it in the Senate. In 2019, a lottery bill failed a procedural motion due to Republicans opposed to gambling and Democrats who sought guarantees for the state’s dog racetracks.
Alabama is one of five states without a lottery. The others are Nevada, Utah, Hawaii and Alaska. State Senator Jim McClendon, a sponsor of the current bill, said, “Every time I go back to my district, the message is clear: people want to have the right to vote on a state lottery and gaming.”
