In Alabama, SB130, sponsored by state Senator Jim McClendon and co-sponsored by Senate President Pro Tempore Del Marsh, would allow voters to approve a constitutional amendment permitting a lottery. But lobbyists working for the Poarch Band of Creek Indians recently said Marsh would sponsor a “more tribe-friendly” gambling bill after meeting with Poarch Band leaders.
Although listed as a co-sponsor, Marsh recently had stated some concerns about McClendon’s measure, including distribution of lottery funds and permitting VLTs at the state’s four racetracks. The Poarch Band of Creek Indians, which owns one of the racinos, could lose its billion-dollar gaming monopoly if VLTs are allowed.
In 2015, Marsh sponsored a similar bill, but then-House Speaker Mike Hubbard, working with the tribe, killed the legislation. Marsh said the Hubbard-tribal plan created a monopoly and in an op-ed, Marsh insisted on allowing a vote on his bill to create a statewide lottery and allow VLTs at existing racetracks.
Now observers said Marsh, who’s running for the U.S. Senate in 2020, could have changed his mind about the legislation since he’s facing a growing field of contenders and could use financial help from the tribe’s deep pockets. Currently the Poarch Band is backing U.S. Rep. Bradley Byrne, but analysts believe the tribe will support whoever kills the lottery bill.
McClendon’s bill, which doesn’t actually mention the Poarch Band, prohibits slots and live dealer games of any kind. He frequently has stated his bill’s sole purpose is to allow a vote on a lottery. In a letter to legislators, Poarch Band Chief Executive Officer Stephanie Bryan said the tribe would support a “clean lottery bill,” ensuring the tribe would keep its gaming monopoly in Alabama and continue to take in billions of tax-free dollars. But, as a result, the state could miss out on about $150 million in annual revenue from the VLTs, which would be taxed at 25 percent.
Over the past few years, the Poarch Band tribe has offered to help the state fill a $250 million budget hole in exchange for gaming exclusivity. It also purchased a Pennsylvania casino for $1.3 billion and bought other casino properties in the Caribbean, Louisiana and Nevada, and invested hundreds of millions of dollars in upgrades at their Montgomery and Wetumpka casinos.
