The Poarch Band of Creek Indians recently offered 0 million to cover Alabama’s projected budget shortfall in fiscal year 2016, starting October 1, in exchange for a gaming compact giving the tribe exclusive gaming rights. The compact also would require the tribe to pay the state a percentage of annual earnings. Observers believe the move is in response to a bill introduced by state Senate President Pro Tem Del Marsh that would allow a state lottery plus four casinos. The Poarch Creeks currently operate casinos in Atmore, Wetumpka and Montgomery, as well as the Mobile Greyhound Park.
Governor Robert Bentley has proposed $541 million in tax increases to fix the budget next year and beyond. “We cannot be dependent on gambling for the 2016 budgets or really for future budgets,” Bentley said. Many lawmakers support cutting state services.
Marsh confirmed he met with tribal leaders and that the $250 million figure was “mentioned.” He said, “What I think we’ve got to be very careful of is if we go down the path, and we decide the gaming revenue is a possibility for solving some of these problems, I think we better put together the best package we can, because $250 million merely fills the hole. It doesn’t solve the long term problems.” Marsh added after a meeting with the Senate Republican caucus, “My take from the caucus is they don’t want to give a monopoly to anyone.”
Robert McGhee, Poarch Creeks treasurer and governmental relations adviser, confirmed the “tribal council has held meetings with a number of legislators to discuss ways we could work with the state to solve these budget issues,” although he could not mention specifics. When asked if the tribe could cover the $250 million offer, McGhee said, “I can just say that we have the means, yes.”
Marsh also recently released the results of an Auburn University study commissioned by his office on the effects of allowing Class III table games and slots at VictoryLand in Shorter, GreeneTrack in Eutaw, Mobile Greyhound Park and the Birmingham Race Course. The study indicated Alabama could receive $400 million annually with 11,000 new jobs. About $330 million a year would be generated by the lottery, but most of the jobs would be at the four casinos. “These numbers are so large that in my opinion they should be looked at,” Marsh said.
Regarding the report, the Poarch Creeks’ McGhee said, “We’ve tried to be good corporate citizens to the state, to do what’s right and provide for the areas especially around our locations. What’s happening now is disappointing to us. It’s a complete shift in direction.” He explained, “You have to ask if approving Class III gaming is what’s best for the state. It is my understanding that only $64 million comes from the casinos. You would still make $330 million from the lottery and keep your current laws.”
He added, “Class III gaming is not something we’ve pursued because we were happy with our situation here.” He noted the tribal owned greyhound racetrack would never expand to Class III gaming. “That would draw customers from our location in Atmore,” McGhee said. He also pointed out the tribe’s three casinos employ only 2,500 people. “If this is the direction that the state ultimately takes, we’ll have to discuss what’s best for us from an economic standpoint and make decisions that are in our best interest,” McGhee said.
Tribal Chairwoman Stephanie A. Bryan said the tribe would have to carefully study any proposed gambling legislation before forming an opinion on it. “As a sovereign nation we are subject to federal, not state laws, and we are under no obligation to negotiate a compact,” Bryan added.
Marsh noted after talks with colleagues, “We had a few members who were adamantly opposed. The bulk of the caucus felt that it needs to be kept in play. I think some of this stuff is finally soaking in. They’re getting calls from home. Gambling does not produce wealth. Gambling just shifts wealth around.”
In 1999, voters rejected 54-46 percent then-Governor Don Siegelman’s plan for a lottery to fund college scholarships, school technology and pre-kindergarten, 54 percent to 46 percent. Since then Democratic lawmakers unsuccessfully have proposed lottery bills numerous times. Giles Perkins, who ran the unsuccessful lottery campaign, said, “I think 16 years ago we could have passed the referendum on the lottery but mistakes were made by us and others. I think if anything, public attitudes have loosened and I suspect a public lottery could pass right now.” A constitutional amendment to allow a lottery or casinos would require approval of three-fifths of the House of Representatives and the Senate. Then voters would decide the issue in a special election or as part of a scheduled election next year.
