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Alabama State Sitting on a $700m Legal Gambling Goldmine
By Jeff Osienya Dec 23, 2020 LegalityThe Heart of Dixie has the potential to create 19,000 more jobs and collect about $700 million in tax revenue if a state lottery, casino gaming, and sports betting are introduced within stateliness.According to a new report, the launch of a regulated gambling market in Alabama has the potential to bring in funding worth up to $700 million every year into state coffers. Better yet, a legal gambling industry would also create new employment opportunities for about 19,000 people in the state.
The report was published by the Study Group on Gambling, a committee that was formed by state Governor Kay Ivey earlier in the year after she saw that lawmakers in Alabama were ready enough to take on the subject. The group conducted an extensive study and published an 876-page report to inform the state on how it would fair should it introduce legal gambling within its borders. While the committee did not put forward any specific arguments for or against the matter after publishing the comprehensive report, it did however acknowledge that the presence of a legal gambling market could cost the state socially.
Todd Strange the chair of Gov. Ivey’s group and former Montgomery mayor held a press conference on the steps of the Alabama State Capital to break down the scope of the study. In the briefing, Strange disclosed that the Heart of Dixey was indeed capable of absorbing any costs that may be associated with welcoming legalized gambling. The former mayor added that;
Quote"Gambling will work in the state of Alabama, and we feel the advantage outweigh the disadvantages in that endeavor. There is $600 to $700 million that start and stabilizes growth. There are new jobs created that are twice what the per capita income is on an annual basis."
What Would Gambling Look Like in the Heart of Dixey?
After conducting wide-ranging research, the report published by the governor’s Study Group on Gambling tabled a couple of suggestions that could be adopted should the state consider legalizing the activity.
Thus, should the state see it fit to legalize gambling, the committee, proposes launching a lottery, allowing casino-style gambling and a sports betting menu as well. On top of that, the group recommended the creation of an independent oversight body like a gaming commission for instance, to supervise gambling. From what has been happening in gambling-legal states in the US so far, states with gambling infrastructure and regulatory bodies have in general managed to create an operational framework and launch gambling activities faster than those that decided to put sports betting under the lottery.
Some of the types of gambling that Alabama could consider according to the report include the likes of a state lottery, multi-jurisdictional lottery, single-game sports betting, jai alai, and banked card games. The notes on gaming suggestions also include the possible venues where the activity could be carried out and may include tribal casinos, commercial casinos, and card rooms.
A survey commissioned by Gov. Ivey’s committee between 17th and 19th November also disclosed that 67% of 500 respondents said that they supported legalized gambling. Of the surveyed sample, 71% supported the launch of a state lottery whereas 52% of the respondents were in favor of a legalized sports betting market. The respondents here were composed of Alabama residents who are eligible to vote. On the flip side, the survey also revealed that there was a chance that 3% of the population or 66,000 residents could become problem gamblers.
Based on the committee’s findings, the introduction of a state-run lottery has the potential to win up to $300 million in tax money for Alabama, whereas legal casino gambling in 5-7 brick and mortar facilities could also pour in anything from $300 to $400 million every year for state coffers. Throw in sports betting into the Heart of Dixie and the state would rack up $10 to $15 million more in tax revenue. The Study Group on Gambling also advised that the state could even choose to pursue gambling fully or partly such as only allowing a lottery and limited game alone or whichever direction it wished to take.
The Current State of Gambling in Alabama
At the moment, the constitution of the Heart of Dixie forbids any form of commercial gambling. Even more alarming is the fact that Alabama is one of the five states in the USA that don’t have a state lottery. But then of those five states, while Alaska, Hawaii, and Utah haven’t legalized any form of gambling, Nevada ditched the state lottery in favor of other forms of gaming back in 1864.
Tribal gaming is the only form of gaming that exists in the Heart of Dixie. The Poarch Band of Creek Indians, a federally recognized tribe currently operates casinos in Montgomery, Wetumpka, and Atmore. Besides, local constitutional amendments also led to the legalization of electronic bingo at dog tracks in Green and Macon counties.
Alabama’s constitution will have to be amended should lawmakers decide to pursue legalized gambling, and in that case, any bill will require to be voted in by at least 60% of lawmakers in both chambers before it can be approved by voters. The governor on her part did not explicitly voice her support for or against the matter either, but indicated that she would respect the will of the people should they decide on a course of action. Part of her statement on Friday read;
Quote"I continue to maintain the final say on gambling belongs to the people of our great state, and if and when I have a recommendation regarding a specific course of action, I will do so in full transparency to the people of Alabama, working hand-in-hand with the Alabama Legislature,"
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