T
he Alabama Senate approved legislation Tuesday night to allow voters to decide whether to have a state lottery, nine casinos and sports betting.
The main bill, a constitutional amendment by Republican Sen. Jim McClendon, passed by a vote of 23-9 and now heads to the House of Representatives. If approved by lawmakers in both chambers, the proposal would then go before voters on the ballot for the November 2022 general election.
The approval came five weeks after the Senate rejected a similar plan. The new version includes new provisions such as putting the casino licenses up for bid, as reported by the Associated Press.
“We have done a monumental job in overcoming something that has been haunting this body for as long as I’ve been here,” McClendon said after the vote. His original bill proposed a constitutional amendment to allow voters to decide whether to have a lottery but did not include casinos. But the Senate on Tuesday adopted a substitute bill by McClendon that added six new casinos to the plan.
McClendon said he did not have enough support to pass the bill if it only included the lottery. Four of the casinos would be at the state’s greyhound tracks in Birmingham, Mobile, Greene County, and Macon County. One would be in Houston County, at the Crossing at Big Creek bingo hall. The sixth would be in either DeKalb or Jackson County in northeast Alabama. They would be added to the three sites owned by the Poarch Band of Creek Indians.
The bill would create an Alabama Gaming Commission that would issue licenses for the casinos through a competitive bidding process. But the current operators in Birmingham, Mobile, Greene County, Macon County, and Houston County would have the right to make a final bid exceeding the highest bidder. For the casino in DeKalb or Jackson County, the Poarch Band of Creek Indians would have the right to make the final bid.would also authorize sports betting.
The bill would require the governor to negotiate a compact with the Poarch Band of Creek Indians. That could allow the Poarch Creeks to offer the full range of casino games at their resorts in Atmore, Montgomery, and Wetumpka, which now offer only electronic bingo.
McClendon said the state would get the benefit of a “high bid” but the existing sites “get a chance to stay in the game… and keep the job for their employees and keep their operations going.”
Lottery proceeds would be used for education purposes, including a college scholarship program. The state would place a 20% tax on net casino and sports betting revenue. The first $750 million of gaming revenue would be put toward broadband infrastructure in the state.
A study commission appointed by Gov. Ivey issued a report in December saying the state could benefit from uniform regulation of gambling and could gain net revenue of up to about $700 million a year from a lottery, casinos, and sports betting. Ivey supports sending a comprehensive gambling proposal to voters.
