Last month, Alabama Governor Robert Bentley appointed an advisory council to study state and federal gambling laws, tax revenues and other gambling-related issues. The 11-member group will present its findings and recommendations to the governor and the legislature by January 31, before the legislative session starts in February.
In the meantime, at the council’s second meeting, the Poarch Band of Creek Indians Vice Chairman Robert McGhee said the tribe is willing to negotiate an agreement with the state for expanded gambling. “We’ve always been here and just ready to do that if that’s the will of the state and the will of the people. It’s got to be mutually beneficial,” he said.
Under Alabama law, the Poarch Creeks are allowed to offer electronic bingo at their Wind Creek casinos in Atmore, Wetumpka and Montgomery. The tribe would need to enter into a compact with the state to offer slot machines and table games. Currently the state collects no tax revenue on the games and does not regulate the casinos.
However, under a compact allowing the tribe to expand its gambling offerings, the state could collect $50-$70 million in annual revenue—more if the tribe opens a fourth casino in north Alabama. McGhee noted, “There is great opportunity within the north, in the northwest.” He cautioned that revenue-sharing would depend on the Poarch Creek casinos being the only ones with Class III games; others could offer Class II electronic bingo.
McGhee added, besides generating money for the state, a gaming compact could “stop this constant battling every year in the statehouse.” This summer a proposal to allow Alabama voters to approve a lottery died in the state Senate. Earlier, Senate President Pro Tem Del Marsh proposed legislation to allow Class III gaming at the state’s four dog track, with gambling revenue taxed at 13 percent.
The council also heard from gambling opponents, including Joe Godfrey, executive director of the Alabama Citizens Action Program, which lobbies the legislature on behalf of churches. He told the council it would be a mistake for Alabama to expand gambling through a compact or lottery. Les Bernal, national director of Stop Predatory Gambling, said gambling profits depend on gambling addicts, and the majority of casino revenue would come from people who can’t afford to lose it. “This is the ultimate budget gimmick. It has been a failed strategy,” Bernal said.
In response, council member state Rep. Craig Ford told Bernal that Alabama already has gambling but gets no tax benefits from it. He noted people go to Alabama’s four neighboring states to gamble and he wants legislation “to keep Alabamians’ tax dollars here at home. Our General Fund has been in dire straits the last six years,” Ford said.
