Alabama may soon lose its reputation as one of five states without a lottery.
In a 23-9 vote, the state Senate approved a constitutional amendment sponsored by Senator Jim McClendon, allowing voters to decide whether they want a state lottery and six casinos. The Senate rejected a similar plan a few weeks ago. If the measure passes the House, the issue will appear on the November 2022 ballot. The bill also would allow sports betting.
McClendon’s original bill only included a lottery but he pulled the measure because he said a lottery-only bill didn’t have enough support. McClendon stated, “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. I appreciate the input from my colleagues in the Senate and the willingness of members of the House of Representatives and the governor’s office to participate in a discussion about this transformational issue for our state. I am hopeful about the potential of getting this constitutional amendment in front of Alabamians so that they have a chance to make the final call on this critical decision for the future of our state. What we are really okaying is the right for our constituents to come to the voting booth and decide if they like this or not.”
Four of the casinos would be at the state’s greyhound tracks in Birmingham, Mobile, Greene County and Macon County. One would be in Houston Count, at the Crossing at Big Creek bingo hall. The sixth would be in either DeKalb or Jackson County in northeast Alabama.
The bill also would create an Alabama Gaming Commission that would issue licenses for the casinos through a competitive bidding process. Under the proposal, the current operators 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 of Creek Indians would have the right to make the final bid for the casino in DeKalb or Jackson County.
The bill would require the governor to negotiate a compact with the Poarch Band. As a result, the tribe could offer Class III gaming at their casino resorts in Atmore, Montgomery and Wetumpka, which now offer only electronic bingo.
The Senate also passed three pieces of enabling legislation sponsored by state Senator Del Marsh. The bills would establish a state lottery commission; a state gambling commission; limit political contributions by gambling operators; and establish criminal penalties for unlicensed gambling.
Marsh stated, “There have been great meetings with the House members and the governor’s staff, the governor. I really believe everybody sees the light in a comprehensive plan. And I believe that the leadership of the House will take this piece of legislation and move it forward and make sure the members understand it. Yeah, it’ll have changes. The House will put its imprint on it. And we’ll probably see it up here in the Senate again. But I think everybody sees the need and the timing to get this done in this session.”
Lottery revenue would be used for college scholarships. The state would tax net casino and sports betting revenue at 20 percent, to be used for expanding access to high-speed internet, rural health care, mental health care and other programs. A report issued last December by Governor Kay Ivey’s study commission said regulated gambling could generate net revenue of $710 million annually.
Ivey’s Press Secretary Gina Maiola said, “Governor Ivey remains firmly convinced there is a way where, if done right, the people of Alabama can eventually have the final say on a comprehensive gambling package that will be transparent and transformative. That remains her goal, and she intends to continue to be fully engaged in the legislative process.”
Senate President Pro Tem Greg Reed noted, “It’s our job to look at issues deep and wide. And I think what we saw was an enormous amount of participation. But it wasn’t just today. This has been a process that’s been going on even before the session started. We’ve had a lot of involvement, a lot of engagement.”
McClendon commented, “I have confidence that the House is going to take this opportunity. We’ve been waiting for it for a long time. We’ve been haunted by this issue of gambling in Alabama. Ever since I’ve been here, it’s been an issue. Well, it’s time we got it resolved. And I think the Senate has certainly made a major first step in doing so.”
