Alabama Legislators File Lottery Bill

Despite the defeat of Alabama state Senator Del Marsh’s bill allowing casinos, a lottery and sports betting, lawmakers filed new lottery only gambling legislation.

Alabama Legislators File Lottery Bill

A day after the defeat of Alabama state Senator Del Marsh’s casino, lottery and sports betting bill by two votes, six new bills were introduced that would establish a lottery.

Marsh, chairman of the Senate Tourism and Marketing Committee, entered SB 309, SB 310; state Senator Garlan Gudger filed SB 311; SB 318; and state Senator Jim McClendon sponsored SB 319 and SB 320.

McClendon stated, “I haven’t had anybody in my district come to me and say, ‘I wish we had a roulette wheel or a craps table.’ They don’t say that. They come to me and say, ‘I’d like to buy a lottery ticket without leaving the state.’ They don’t mention table games and casinos.” Alabama is one of six states that doesn’t have a lottery; the four states that border Alabama offer lotteries.

Alabama Citizens Action Program Executive Director Joe Godfrey said, “These new bills are ‘lottery only,’ but people need to realize that if a ‘lottery only’ bill passes the Senate, is amended in the House and goes to a conference committee in order to reach a compromise, it can be changed to include casinos. The gambling bosses are not giving up and going away quietly! We must continue to flood the phones and email boxes of Alabama senators asking them to oppose all gambling bills.”

Godfrey added that passing a lottery bill “will only require a simple majority vote, not two-thirds as in the original legislation. We must not give up fighting for the conservative and family values in our state,” Godfrey said.

Alabama Policy Institute Chief Policy Officer and General Counsel Phil Williams added Marsh’s previous bill “died under its own weight, combined with the fact that the gambling interests turned it into a feeding frenzy.” The bill would have allowed casinos at the state’s four greyhound racetracks; it also would require Governor Kay Ivey to negotiate a gaming compact with the Poarch Band of Creek Indians, which operates three casinos in Alabama.

Three-fifths of lawmakers and a majority of statewide voters would be required to approve any constitutional amendments. Five years ago, the Alabama Senate passed a similar bill introduced by McClendon, but it was changed in the House and didn’t pass. In 1999, voters rejected then Governor Don Siegleman’s lottery plan which was passed by the legislature. However, disagreement already has begun over how the required changes in state law would affect existing bingo operators.

McClendon said his legislation would establish a lottery commission as the regulating body. He stated the lottery would include multistate games like Mega Millions and Powerball. “Whatever games that are played in our surrounding states, I would like for our people here in Alabama to be able to play without having to leave the state,” McClendon said.

He added his proposal would split net revenue between the Education Trust Fund and the General Fund. “I’m going to leave it to the budget committees to allocate that money wherever it’s needed every year,” McClendon said.

State Rep. John W. Rogers Jr. also introduced gambling-related bills, which are now under consideration in the House Economic Development and Tourism Committee. House Bill 161 would legalize sports wagering; HB 199 would legalize a state-sponsored lottery; and HB 200 would legalize casino gambling.

Regarding the defeat of Marsh’s gambling bill, McClendon said, “We all knew it was going to be close. I thought it would be one vote. I didn’t know if it would be one vote plus, one vote minus. And I don’t know why others voted no on that bill. It was complex. It had a lot of moving parts. And the more moving parts there is, the more opportunity for somebody to find a problem.”

Marsh said he wants to keep options open for either a lottery or the more comprehensive gambling plan. He commented, “What’s important is we get something out there for people to make a decision on.”

State Senator Will Barfoot said, “I am not a huge supporter of gaming, but I understand that people want an opportunity to vote on it.”

State Senator Larry Stutts said he is “fundamentally against gaming as a way to finance the state. But I was willing to listen and I know there’s public support for some type of gaming legislation,” he said. “And I strongly feel that if we’re going to raise that tax money we ought to decrease taxes somewhere else.”

Meanwhile, the Poarch Band of Creek Indians said it would consider its options regarding building a casino in northeast Alabama—a provision of Marsh’s defeated legislation. Wind Creek Hospitality Vice President of Business Development Arthur Mothershed said, “We thought the bill would go through. We are now working a different avenue to get it reconsidered.”

He added, “It would be more than just a casino. We are talking about a destination resort, hotel and entertainment complex. Combined with the natural beauty of the area, that could be a prime tourism attraction in the state.”

Mothershed estimated the facility would create 2,500 construction jobs and 2,000 permanent jobs. The property would include a luxury hotel with 500 to 1,000 rooms.

He encouraged people who support a casino to contact their local lawmakers and tell them that they “want nice destination resorts built so people will come to Alabama and spend their money. Make your opinion known to them.”