The Alabama Senate Tourism Committee recently advanced a proposed constitutional amendment to permit a state lottery, sports betting, eight full casinos with slots and table games and two smaller venues.
The measure, plus a companion bill to establish a state gaming commission and draft operating rules, now goes to the state Senate. Similar legislation was approved last year but time ran out before it reached the House.
State Senator Greg Albritton, the bill’s sponsor, said the bill would give Alabamians a much-desired state lottery and “grab control” of gambling by allowing a limited number of casino sites. Alabama remains one of five states without a lottery. Albritton said, “The people have been ready for this vote for years.” If three-fifths of legislators approve the bill, a statewide referendum on the amendment would be held in November.
Casinos would be located at the four existing dog racetracks in Greene, Jefferson, Macon and Mobile counties and at venues operated by the Poarch Band of Creek Indians, who would be allowed to open another location in DeKalb or Jackson County. Also, two smaller casinos with 300 slots each would be allowed in Houston and Lowndes counties. Lottery revenue would go to education scholarships. Casino and sports betting revenue would fund broadband, health care and Medicaid expansion.
Under Albritton’s bill, online sports wagering revenue would be taxed at 20 percent. Retail and online sports betting operators would be required to be licensed by retail casinos, the bill said.
If approved, the measure would authorize Governor Kay Ivey to negotiate with Poarch Band representatives to amend the state’s gambling compact with the tribe. Ivey said she’d support the legislation if it reaches her desk.
Opponents argued the bill would essentially hand the casino licenses to a few select operators. State Rep. Kelvin Lawrence said, “We shouldn’t be, as a legislature, in the posture of picking winners and losers.” He said passing the measure would limit the number of machines in a county, leading to the closure of an existing facility in his county.
Lobbyist Heather Coleman Davis, representing another Greene County operation, said, “The competitive bid process that it mentions in this piece of legislation is actually more of a rigged bid process because the current owner is given the opportunity to offer one dollar over the winning bid to secure the license at the end of the day.”
Tourism Committee Chairman state Senator Del Marsh urged the House to take up the gambling proposal if it’s approved by the Senate. He said a lottery and casinos are the top issues constituents inquire about when he returns to his district. “I think the people of this state want to have something to vote on and make a decision on,” Marsh said.
In 2020, Governor Kay Ivey commissioned a study that showed a lottery could generate $300 million in annual tax revenue for the state; casino gaming could bring in $400 million; and sports betting could produce $10 million.
