Alabama House Committee Approves Gambling Expansion Bills

Article by : Erik Gibbs Feb 16, 2024

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Alabama’s legislative progress towards a comprehensive gambling plan achieved a significant milestone as the state House of Representatives endorsed a proposed constitutional amendment and a complementary bill with a 70-32 vote, exceeding the three-fifths majority requirement.

The plan, inclusive of lottery, sports betting and multiple casinos, now awaits voter approval for the expansion of legal gambling.

Following approval from the Alabama House Economic Development and Tourism Committee, the proposal heads to the Senate for further consideration.

Successfully navigating the legislative process could lead to a public vote on the proposed constitutional amendment during the November general election, marking the state’s first such vote on gambling since the rejection of a lottery proposal in 1999.

Alabama’s gambling legislation has faced challenges over the past 25 years, including opposition to legalized gambling and conflicts over coveted casino licenses, contributing to a complex and protracted legislative landscape.

The state’s long standing inertia on gambling legislation has been compounded by the broader debate over casino permissibility.

Leading the current initiative is Representative Andy Whitt, Chair of the House Committee on Economic Development and Tourism. Whitt’s committee, signaling substantial support, endorsed the bill with near-unanimous approval, setting the stage for full House consideration.

The legislative drive, led by Whitt and Representative Chris Blackshear, is propelled by two key elements. First, there’s a strong emphasis on addressing the issue of illicit gambling within Alabama. Secondly, the legislators highlight the fundamental importance of enabling citizens to express their stance through a democratic vote.

Blackshear, as reported by AP, is optimistic about the legislation, which he considers a significant initiative empowering Alabama’s residents to determine the state’s direction. Unlike previous efforts, the current push extends beyond the financial benefits of a lottery for education.

Supported by a comprehensive fiscal note, the proposed bill outlines anticipated costs and revenues associated with introducing gambling in Alabama. The bill includes a one-time $5 million fee per license for seven casino licenses, projecting gaming revenue to range between $315 million to $492 million annually.

For a lottery, estimated revenues allocated for both game operations and education fall between $305 million to $379 million per year.

Additionally, the fiscal note anticipates sports betting contributing between $15 million and $41 million annually, offering a detailed financial forecast for the potential gains from the proposed gambling initiatives.

A comprehensive proposal is in the works, seeking approval for up to 10 casinos, including three tribal sites managed by the Poarch Band of Creek Indians. The plan encompasses table games, slot machines, a state lottery and both in-person and online sports betting.

Financial aspects include a 7% lottery sales payment to retailers and a 10% allocation of sports betting revenue to the Alabama Sheriff’s offices. The legislation strictly prohibits Gaming Commission members from holding casino ownership stakes.

The proposal also outlines a competitive bidding system for casino licenses, designating six locations and a conditional seventh license pending a compact with the Poarch Band of Creek Indians.

Approval from local governments, either through resolutions or referendums, is a crucial mandate. In addition, Governor Kay Ivey supports the legislation, considering it a significant advancement and a move towards a standardized regulatory framework, replacing Alabama’s current disparate laws.