The Alabama House of Representatives has passed a bill that would allow voters to decide on the legalization of various forms of gambling in the state, including casinos, sports betting, and a lottery. The bill, which was approved by a 70-32 vote on Thursday, now moves to the Senate for further consideration.
What the bill proposes
The bill, known as HB 151, is a proposed constitutional amendment that would authorize up to 10 casino sites with table games and slot machines, a state lottery, and sports betting at in-person locations and through online platforms. It would also authorize the governor to negotiate a compact with the Poarch Band of Creek Indians, the only federally recognized tribe in the state, to offer regulated gambling at their existing facilities.
The bill is accompanied by a companion bill, HB 152, which sets out the rules and regulations for the gambling industry, including the creation of the Alabama Gaming Commission, the Alabama Lottery Corporation, and the Gaming Enforcement Division. The bill also specifies the tax rates and revenue distribution for the different forms of gambling.
According to the Legislative Services Agency, the bill could generate between $635 million and $913 million in annual revenue for the state, depending on the number and location of casinos and the level of participation in gambling activities.
Why the bill matters
The bill is seen as a historic step for Alabama, which is one of the few states in the nation that does not have any form of legalized gambling, except for charitable bingo and tribal gaming. For the last 25 years, gambling legislation has stalled in the state due to a mix of opposition from religious groups, legal challenges, and a turf war over who could get casino licenses.
Supporters of the bill argue that it is time to let the people of Alabama have a say on the issue, as they see Alabamians regularly cross state lines to buy lottery tickets or visit casinos in neighboring states, but Alabama does not reap the tax benefits of those sales. They also claim that the bill would create thousands of jobs, boost tourism, and fund various public services, such as education, health care, broadband, and rural development.
Opponents of the bill, however, contend that gambling causes social problems, such as addiction, crime, and poverty, and that the bill is rushed and flawed, as it does not guarantee fair competition, adequate oversight, or equitable distribution of gambling opportunities and revenues. They also question the reliability of the revenue projections and the transparency of the licensing process.
What happens next
The bill faces an uncertain future in the Senate, where it needs at least 21 votes to pass. According to some reports, the bill is currently short of votes, as some senators have expressed concerns or opposition to the bill, or have not yet taken a position. The bill also needs the approval of Governor Kay Ivey, who has expressed support for letting the people vote on gambling, but has not endorsed the specifics of the bill.
If the bill passes the Senate and is signed by the governor, it will be placed on the ballot for the November 2024 general election, where it will need a simple majority of votes to become law. If approved by the voters, the bill will take effect on January 1, 2025, and the gambling industry will be subject to the rules and regulations established by the Alabama Gaming Commission and the Alabama Lottery Corporation.
