Alabama Senate committee passes gambling bill without casinos or sports betting

It creates a lottery, shuts down illegal gambling across the state, ends electronic bingo, even in the six facilities that would remain open, removes sports betting from the House version in any form, and authorizes the Governor to enter into a compact with the Poarch Creek Band of Creek Indians (PCI).

This bill is very differently from the one authorized by the House when the session began. That constitutional amendment would have authorized as many as ten class III gambling casinos across Alabama.

The only electronic bingo left in the state of Alabama would be on the three facilities operated by PCI in Atmore, Wetumpka, and Montgomery.

Sponsors hope the legislation will shut down most of those illegal gambling establishments. The six non-PCI operated facilities that would be licensed by the state allowed to lawfully operate could play bingo on paper cards, offer live dog racing, offer betting on simulcast horse and dog racing. Some facilities offer machines where players can bet on.

Most of the revenue will come from the Alabama Lottery. Sponsors estimate that this will bring in $350 million. The original House version of the bill would have brought in an estimated maximum of $1.2 billion, with most of the revenue coming from the casinos.

For the first three and a half years all of the revenue generated would go to the state general fund. Beginning in 2029 one third of the money would go to the education trust fund. Two generations of Georgians have gone to college on the Hope scholarships generated by the Georgia Lottery. The House version of the bill would have allocated a small portion of the proceeds towards scholarships to two-year colleges and technical schools to improve the state’s workforce development efforts. No part of the legislation passed by the Senate committee on tourism would be allocated to scholarships of any kind.

The House version of the bill would have had the vote to ratify the constitutional amendment on the November 5 general election ballot. A number of Republicans have expressed concerns that having the gambling vote on election day would artificially increase Democratic voters. The Senate bill eliminates that provision and moves the election to a special referendum on September 10.

Sen. Greg Albritton (R-Atmore) is carrying the bill in the Senate. “We have been working feverishly on trying to develop a consensus,” Albritton explained. “Since that time we have gone through two or three different versions. We met today and had other gatherings – some that I will term adult in nature. We think we have a consensus.”

Albritton said that the new constitutional amendment would override any existing local constitutional amendments and block any new ones from being put in place.

The bill will “Tax this and collect the taxes owed,” Albritton said on the remaining legal gambling. “A range of taxation between 24 and 34%.”

Albritton acknowledged that some facilities operating now have electronic bingo. “We are eliminating electronic bingo at those locations,” Albritton said. “So all the proceeds will go to the general fund for three years?” Senate Minority Leader Bobby Singleton (D-Greensboro) asked.

“Three and a half years and after that one third will go to education,” Albritton answered. “I still have not gotten a full explanation of why we are not addressing sports betting and wagering as came out of the house,” Singleton said. “Why are we not capturing those dollars when we know it is going on on a regular basis?”

“We are aware that we have sports betting going on throughout the state,” Albritton answered. “We do not have the votes to get those addressed here.”

“We are leaving a lot of money on the table without addressing sports betting,” said Singleton.

Senator Roger Smitherman (D-Birmingham) said that he had concerns that if the state passes the lottery that PCI will go to the federal government and ask them to allow the tribe to upgrade their casinos to class III gaming without dealing with the state of Alabama.

“We are not going to get a dime for class III and if the people that are regulated by the Federal government go and ask for it they are going to get class III,” Smitherman said. “Under this package there is no authorization for anybody to have class III gaming – whether it is the PCI or anyone else,” Albritton said. “I want to make sure that we don’t lose the trigger on Class III gaming,” said Smitherman.

The Senate Tourism Committee gave a favorable report to both the constitutional amendment and the enabling legislation it would authorize.