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Alabama Legislature Rolls Dice on State Lottery and Casino Bill
By Jeff Osienya Mar 20, 2022 LegalityAlabama legislators are taking another shot at gambling expansion, hoping to win public approval later in November after sailing through the Senate. The newly tabled measures plan to introduce a state lottery, casino gaming, and sports betting.Following the tabling and approval of a lottery bill by the Alabama House of Tourism and Economic Development, the measure may soon be heading to the ballot. While many industry observers are optimistic, this is not the first-time legislators are making efforts to legalize the lottery in Alabama. There have been multiple attempts to update Alabama legislation to legalize a state lottery and amend the state’s gambling laws. However, all the previous gambling expansion efforts have been met with some opposition from conservative legislators opposed to gambling in general.
As recently as 2021, Sen. Jim McClendon (R) sponsored a constitutional amendment to have a lottery and regulated casinos. The bill was approved by the Senate via a vote of 23-9 but died on reaching the House. McClendon’s bill, which had also included clauses that would permit sports betting, had proposed that upon approval by the House, the final say would be made by voters to decide whether they thought it would benefit the state economy. However, this time around, the Senate voted unanimously to move forward with the new gaming expansion bills, SB 293 and SB 294, both sponsored by State Sen. Greg Albritton (R-Atmore).
The two new bills propose the introduction of an Alabama Education Lottery, casino gaming, sports betting, raffles, and bingo games. Sen. Albritton further outlines creating an oversight body dubbed the Gaming Enforcement Division, operating under what has been referred to as the Alabama Education Lottery and Gambling Commission.
The Clock is Ticking for The Heart of Dixie
Alabama is one of only five states that have prohibited most forms of in-state gambling. However, the limited sessions left in the legislative calendar pose a major challenge to gambling-related bills, especially in conservative states. The Alabama legislative calendar is set to be adjourned on April 7, leaving a tight schedule to try and get the House to pass it. As such, legislators are now racing against time to try and get some bills passed by the Senate and House of Representatives, hoping to get voter approval in the November 2022 general elections.
Republican Rep. Chip Brown, a strong proponent of the bill, expressed confidence that this may be the year a lottery bill gets passed. Rep Brown was quoted by a local daily saying:
Quote“This came from members of the House that want to allow the people of their districts to have the ability to vote on this. So, by bringing this bill, we are sending the message that we want the people of Alabama to vote on this. We have time to do this, and I expect to get on the floor and get it out.”
What the Nay-Sayers Have to Say
Albritton’s bill has tried to address issues that had previously led to the House rejecting similar bills. However, opposers have raised concerns about requirements to shut down some existing facilities to pave the way for some new casino operators in some counties. For example, Rep. Kelvin Lawrence (D-Hayneville) has asserted that shutting down a facility currently operating in Lowndes County would be detrimental. The facility has been serving the massively impoverished community for over 20 years.
Greene County will also be affected, and lobbyist Ryan DeGraffenreid pointed out the bill’s implications on the county. He urged the legislature to hold off on pulling the trigger and instead let the market decide who gets to keep operating and who shuts down operations.
The bill’s main sponsor, Sen. Albritton, was adamant about the precise aim of the bill, especially with opposers working to ensure that the proposal doesn’t go through. The gaming champion even refused to term the proposal as an expansion, citing the regulations that come along with the bill. He said:
Quote“This is not a gaming expansion; this is a gaming control bill so that the state exercises its sovereignty over this industry, just like it does the chicken industry. Just like it does the construction industry. Just like the banking industry. It exercises a sovereignty, and it regulates the operations. It controls the growth in locations, and it taxes them.”
Time to Keep Gaming Revenue in Alabama
Should the measure make it past the House and the voters, the 20% tax proceeds from the lottery will be used to boost in-state education projects that often face budget deficits. The monies will fund two-year and four-year college scholarships, facilitate dual enrolment for high school graduates to community colleges, a student loans repayment program, agricultural programs for high school goers, and rewards for educationalists. A 2020 study commissioned by Governor Ivey showed that expanding the Alabama gambling market will result in an estimated revenue of $300 million from the lottery and $400 million from casino gaming. The same report also disclosed that online and in-person sports betting would bring in $10 million annually for the state.
The last two years have seen gambling revenues in different states skyrocket following the restrictions that led to operators taking their businesses online. States across the US have been joining their neighbors in allowing online gambling, among other gambling revenue sources, to keep the funds in-state. The fact that punters have been crossing borders to participate in gambling activities has moved lawmakers to rethink their prior stance on the benefits vis-à-vis the risks of letting citizens bet at regulated venues and sites.
Alabama gambling proponents share these sentiments and have voiced their opinions regarding the need to take advantage of the opportunity to add more revenue streams. Right now, those interested in purchasing a lottery ticket have to cross over to nearby states like Georgia, which means that the revenue generated remains in the respective state.
Rep. Chip Brown told reporters that he was among several Alabamians who have been canvassing stateliness for years in search of venues to buy lottery tickets. He said,
Quote“The people of Alabama have been playing the lottery for years. We’ve just been playing it in other states. So, it’s time we kept that money in-state and helped out the children of the state of Alabama.”
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