What is the Alabama gambling plan?

The Alabama gambling plan is a proposed constitutional amendment that would legalize and regulate various forms of gambling in the state of Alabama. The plan was introduced by Senator Del Marsh, a Republican from Anniston, in February 2023. The plan aims to generate new revenue for the state, create jobs, and fund education, broadband, and health care programs.

The plan would allow the following types of gambling in Alabama:

• A state lottery, which would offer both instant and draw games, as well as participate in multi-state lotteries such as Powerball and Mega Millions.
• Historical horse racing, which is a form of pari-mutuel betting that uses past races to generate random outcomes for electronic machines.
• Pari-mutuel betting on live and simulcast horse and dog races, which is currently legal but limited in Alabama.
• Casino gaming, which would include slot machines, table games, poker, and sports betting. The plan would authorize up to 10 casino licenses, with five going to existing racetracks and five going to new locations.

The plan would also create a new Alabama Gaming Commission, which would oversee and regulate all forms of gambling in the state. The commission would consist of seven members appointed by the governor, the lieutenant governor, and the speaker of the house. The commission would have the power to issue licenses, collect taxes and fees, enforce rules and regulations, and conduct audits and investigations.

How would the Alabama gambling plan benefit the state?

According to Senator Marsh, the Alabama gambling plan would generate up to $710 million in annual revenue for the state, as well as create up to 19,000 new jobs. The plan would allocate the revenue as follows:

• 75% to the Education Trust Fund, which supports public schools, colleges, and universities in Alabama. Of this amount, 25% would go to need-based scholarships, 25% to rural broadband expansion, and 25% to health care programs.
• 15% to the General Fund, which supports various state agencies and services.
• 10% to the local governments where the gambling facilities are located, with 5% going to the county and 5% going to the city or town.

The plan would also require the gambling operators to pay a one-time license fee of $5 million, as well as an annual renewal fee of $1 million. The plan would impose a tax rate of 20% on the gross gaming revenue of the casino operators, and a tax rate of 25% on the net terminal income of the historical horse racing operators. The plan would exempt the lottery and pari-mutuel betting from state and local taxes, but would require them to pay a 1% administrative fee to the commission.

What are the challenges and controversies of the Alabama gambling plan?

The Alabama gambling plan faces several challenges and controversies before it can become a reality. The plan requires a three-fifths majority vote in both chambers of the Alabama Legislature, as well as a majority vote in a statewide referendum, to amend the state constitution and legalize gambling. The plan also faces opposition from various groups and individuals, such as:

• The Poarch Band of Creek Indians, who operate three casinos in Alabama under federal law and have exclusive rights to offer Class II gaming, such as bingo and electronic bingo. The tribe has expressed concerns that the plan would violate their compact with the state and create unfair competition for their casinos.
• The Alabama Citizens Action Program, a conservative Christian group that opposes gambling on moral and social grounds. The group has argued that gambling would increase crime, addiction, and corruption in the state, and that the revenue projections are unrealistic and unreliable.
• Governor Kay Ivey, who has not endorsed or opposed the plan, but has expressed doubts about its feasibility and legality. The governor has said that she wants to see a comprehensive study on the impact of gambling in Alabama, and that she wants to ensure that the plan complies with federal law and respects the rights of the tribe.

How does the Alabama gambling plan compare to other states?

The Alabama gambling plan is similar to the gambling laws and regulations of other states in the region, such as Mississippi, Louisiana, and Georgia. The table below summarizes the main features of the gambling plans of these states, as well as the proposed plan of Alabama :

As the table shows, the Alabama gambling plan would offer the most diverse and comprehensive range of gambling options in the region, if approved by the legislature and the voters. The plan would also make Alabama the second state in the nation, after Kentucky, to legalize historical horse racing, which is a relatively new and controversial form of gambling.