Group’s Ads Expose Poarch Band Strategy

Former Alabama state Senator Gerald Dial (l.) created Poarch Creek Accountability Now to reveal the tribe pays no state taxes on casino profits but does pay taxes in other states where it operates venues and also contributes huge sums to state and local political candidates. Tribal leaders said Dial's group's ads are " built on lies and misinformation."

Group’s Ads Expose Poarch Band Strategy

The nonprofit group Poarch Creek Accountability Now, led by former Alabama state Senator Gerald Dial, recently began running television and internet ads claiming the Poarch Band of Creek Indians does not pay state taxes on casino profits, donates significant sums to Alabama political candidates and operates ventures in other states where it does pay taxes.

The ads indicate the tribe is investing millions of dollars in local and state political campaigns to avoid negotiating a compact, which would require it to pay casino revenue taxes. The ads also note the Poarch Band has purchased properties in several states and Aruba, where the tribe will be required to pay taxes. In addition, the ads indicate the tribe operates three casinos in Alabama on sovereign land, meaning the state does not have jurisdiction, so the tribe does not pay state taxes.

Dial, who retired from the Alabama Senate in 2018, said, “I think until you bring attention and pressure to the legislature, and the people realize what’s happening, then we’re not going to get this change. And I’m concerned about the future of Alabama politics, if we allow one group to have as much influence as they’re beginning to have, for the amount of money that they’re able to contribute to campaigns.”

Dial continued, “We just want to make sure that the general public is aware of the true facts about the Poarch Creek Indians. The PCI Gaming syndicate is using the vast revenues collected in Alabama on untaxed gambling and using these Alabama dollars to purchase the Sands Casino in Pennsylvania for $1.3 billion and then the Alabama tribe would begin a $250 million renovation of their Pennsylvania casino.” Dial said the tribe makes its $1 billion-plus investments using Alabama money; he noted the Pennsylvania casino will be taxed at 16 percent of onsite gaming and 54 percent of online profits.

Since Poarch Creek Accountability Now is a nonprofit, it does not have to reveal its donors, Dial said. He added that contributors fear repercussions. He added, “The problem is not who’s funding it. Y’all want to make it a problem of who’s funding it. The problem is what’s happening in Alabama and the fact that they’re taking our money created from our gambling facilities and investing in other states and paying taxes and helping schools and roads in other states but they’re not willing to sit down and compromise on doing some kind of issue that would help us resolve the whole issue and pay some state taxes.”

In response, Poarch Band officials noted the tribe has invested more than $1 billion in its hotels and electronic bingo casinos in Atmore, Wetumpka and Montgomery in Alabama and will invest $350 million into OWA, a water park resort in Baldwin County.

In a statement, tribal officials said, “Unfortunately, there is now an organized effort by entities that do not share our commitment to be good corporate citizens to undermine our well-regulated enterprises and our good works. We cannot begin to understand their motivation for spending funds on a website and paid advertising built on lies and misinformation. We would suggest they consider refocusing their attention on making Alabama a better place to work and live for all of us who love our state.”

Leaders said the tribe has been willing to work with Alabama governors on a gambling compact that would help boost state revenue. A compact would allow the tribe to offer the full range of casino games, including blackjack and roulette. “Most recently, we have proposed detailed plans that include us working with the state to provide more than $1 billion in new revenues to Alabama,” tribal officials stated. A spokesperson for Governor Kay Ivey said, “At this point, Governor Ivey has not reached a firm stance on this, nor has she been presented with any viable options.”

Dial said during the past legislative session, Poarch Creek lobbyists worked to kill a lottery that would have allowed Alabama voters to decide if they want one. He said lottery states now surround Alabama; Mississippi’s lottery will begin selling tickets in November. “It just continues to bother me and I said somebody needs to bring to the attention that all the factors need to come together and let’s pass something that will help the state of Alabama,” he said.

The last time Alabama voters had an opportunity to decide if they wanted a state lottery was in 1999, when then-Governor Don Siegelman’s proposal was rejected. Lottery bills are introduced every year but most are not brought up. The state Senate passed a lottery bill this year but it died in the House.

One point of contention is whether a lottery should include electronic lottery machines in counties where constitutional amendments for greyhound tracks and bingo halls have passed. The Poarch Creek tribe has said although it does not oppose a traditional lottery, it does oppose lottery vending machines at the tracks. Legislators from counties with tracks and bingo halls said they will not support a lottery without the machines.

Dial said the six counties that have passed constitutional amendments for gambling—Jefferson, Mobile, Houston, Macon, Green and Lowndes—should pay taxes on gaming revenue. “Create a gambling commission in this state and put a tax on them and make sure they’re all operating legally and within the scope of what the law says,” he said.

The Poarch Band has given $1.3 million to political candidates and political action committees since January 1, 2018, according Secretary of State figures.

The tribe’s statement said, “The Poarch Band of Creek Indians’ local successes have made it possible for us to expand and invest into other markets across the country and internationally. We have and will continue to look for ways both gaming and non-gaming to invest in Alabama.”