Alabama Senate President Pro Tem Del Marsh said his proposed constitutional amendment measure to allow a state lottery and casinos at four racetracks will be considered in a special session within the next few weeks. Marsh presented the legislation as a way to close a projected shortfall of 0 million-plus in next year’s budget. “What’s the big picture and how do we get there and what are the pieces of that to get us there? I think personally the gaming bill falls into those pieces,” he said.
Governor Robert Bentley said he would veto the current version of the budget, calling for $1.64 billion in spending—an 11 percent, or $200 million, decrease from this fiscal year. The budget passed by the House would slash spending for almost all non-education government functions, as well as for programs that serve the poor, the mentally ill and children. In addition, it would result in layoffs of significant numbers of state employees and cause the state to lose tens of millions of dollars in federal matching funds.
Marsh noted Bentley “may veto the budget, I don’t know. But at the end of the day, the governor will work with the legislature to determine the best time to come back for a special session if he deems one is needed.” The new fiscal year starts October 1.
The Senate Tourism Committee previously approved Marsh’s legislation, but the bill did not get a floor vote. Because of complex legislative rules, controversial Senate bills are difficult to pass in the final four days of the 30-day session.
A recent Auburn University at Montgomery study found both a lottery and casino could generate a total of nearly $400 million in annual revenue, and Marsh noted expanded gambling could lead to $800 million in economic development. “You’ve got to understand, whereas Republicans may not favor gaming strongly, they definitely oppose higher taxes. When you’re left with the option of the governor increasing taxes, I think it’s only fair to let the people vote on it. The taxes would not. Let the people make that decision before we tax them,” Marsh said.
Meanwhile, the Poarch Band of Creek Indians still stands by their offer of a $250 million loan to help cover the budget shortfall in exchange for exclusive gambling rights. The state’s only federally recognized tribe, the Poarch Creeks operate casinos in Atmore, Montgomery and Wetumpka that offer electronic bingo. At a recent public hearing, Poarch Creek Vice Chair Robert McGhee opposed the constitutional amendment allowing competing casinos. “That’s like handing your teenager a credit card with no rules attached and then being surprised when you get a bill that, well, looks like Alabama’s budget deficit,” McGhee said.
Meanwhile, state legislators from Mississippi’s coast are paying close attention to developments in Alabama. At a recent legislative update for the Mississippi Gulf Coast Chamber of Commerce at the Golden Nugget, state Senator Sean Tindell of Gulfport said Alabama was the biggest threat to Coast casinos. “When we started gaming back in 1992, us, Atlantic City and Vegas were the three major destinations. Now you are within a three-hour drive, in the Southeast, if you want to go to a casino.”
He added, “A lot of it is staying ahead of the curve, making sure that we don’t just have casinos. You have to have unique offerings to attract families to make it a destination. We have beautiful beaches. We have ecotourism. We have baseball. We’re going to have an aquarium soon in Gulfport. All these things create a synergy that makes us not just a gaming destination but a tourist destination.”
