An Alabama Senate committee approved a scaled-back version of gambling legislation on Tuesday, bills that would authorize a lottery but would not include sports betting or full casino games.
The plan dramatically changed the legislation approved by the Alabama House on Feb. 15, which would have included sports betting and up to seven new casinos, along with a lottery.
The new version moves the date when voters would decide on the constitutional amendment needed to approve the package. That would come in a special election on Sept. 10 instead of the general election in November.
Sen. Greg Albritton, R-Atmore, the Senate sponsor of the legislation, said the changes were made in an effort to round up enough votes to pass the legislation.
The Senate Tourism Committee approved the legislation on voice votes. That puts it in position for consideration by the Senate, where the constitutional amendment will need a three-fifths vote, 21 of the 35 senators, to pass.
If that happens, the legislation would have to return to the House because of the changes made by a Senate. Unless the House agrees with the many changes, it would then have to go to a conference committee that would try to reach a compromise between the two versions.
The legislation creates a gaming commission with an enforcement division. Albritton said it would achieve the main purposes of limiting, regulating, and taxing gambling in the state, which now falls under a patchwork of local constitutional amendments.
“Those are the things that we’re trying to get started with and capturing that, controlling it, regulating it, getting the enforcement division set up and doing our job as a state to control this industry,” Albritton said.
The legislation would repeal the local constitutional amendments on gambling and prevent future ones. It would limit gambling to the racetracks in Greene, Jefferson, Macon, and Mobile Counties, plus an additional location in Greene County, and at the existing bingo halls in Houston County and in the town of White Hall in Lowndes County.
The facilities could offer pari-mutuel betting on horse racing and dog racing through simulcasts and betting on historical racing machines. The proposed amendment would levy a tax of between 24 and 32 percent on the gambling activities.
Electronic bingo and casino games would not be allowed.
The plan would authorize the governor to enter into negotiations with the Poarch Band of Creek Indians. A compact could result the tribe being able to offer full-scale casino games at its casinos on tribal lands in Atmore, Wetumpka, and Montgomery, which now offer electronic bingo.
The amendment spells out how net proceeds from the lottery and pari-mutuel gambling would be distributed:
- Through March 30, 2029, revenue would go to already existing capital improvement and infrastructure projects.
- After that, one-third would go to educated-relation services, one third to general government, non-education purposes, and one-third would go to road and transportation improvement projects.
- Also, cities and counties where gambling facilities would operate would each receive 3% of net revenues.
- One percent would go to services to respond to problems caused by gambling addictions.
Albritton said sports betting was removed from the plan mainly because of concerns about its potential harm to young people.
“The most common one was the fear that this would draw in youth too rapidly and too egregiously and too openly,” Albritton said.
Asked why the date of the constitutional amendment vote was changed from the general election in November to the special election on Sept. 10, Albritton said, “That’s what I had to do to get the votes.”
This story was edited on March 6 to clarify distribution of revenues.