House to get controversial gambling bill

Published: January 21, 2008 - Printer Friendly Update -  Send This Article To A Friend

January 21, 2010

House to get controversial gambling bill
By Sebastian Kitchen

The troops on both sides are arming for a fight over a bill that would allow private casinos to offer the same games as Indian operations until November, when supporters hope an amendment will be on the ballot to allow people to decide if they want to tax and regulate gambling.

More than 500 people, some who rode to Montgomery on a dozen charter buses from counties with casinos, were at the State House on Wednesday. The House Tourism and Travel Committee passed the bill on a voice vote, sending it to the full House of Representatives for consideration.

The sponsor, Rep. Marcel Black of Tuscumbia, said the bill would allow operations that were in existence as of December 2009 to continue without the threat of a raid.

"It's not creating or allowing or authorizing bingo. That's already been done," Black said. "It defines bingo, which is what the Legislature should be doing instead of the courts."

The bill would terminate in November, which is when Black is hoping that people in Alabama will have an opportunity to vote on a constitutional amendment that would tax gambling, set up a gaming commission and allow electronic bingo at destination points in the state.

Opponents of Black's bill believe it would expand gambling without a vote of the people, allow casinos to open up anywhere in the state and give the operations amnesty from taxes and prosecution. They also question whether the bill is constitutional and overrides existing Alabama amendments on gambling.

Republican Reps. Barry Mask of Wetumpka and Jay Love of Montgomery said the legislation was the worst they had seen and that the gambling industry was "trying to pull a fast one."

"The way this bill is written, any slot machine manufacturer with illegal machines already in Alabama can open up a tax-exempt casino anywhere in Alabama, whether or not they have a local amendment on bingo," Mask said.

Love said the electronic bingo being played at the facilities is illegal. Some people consider the devices to be slot machines that are illegal in Alabama.

Republican Gov. Bob Riley appointed a task force on illegal gaming, which is seeking a ruling from the Alabama Supreme Court on the legality of the operations. A raid on a facility in White Hall, another pending raid of Country Crossing near Dothan and other activity by the task force has helped intensify the fight over gaming here.

Democrats and casino operators have criticized Riley and his task force as hypocritical following the announcement that the commander won $2,300 gambling at a legal Indian casino in Mississippi.

One Republican, Rep. Warren Beck of Geneva, did say he was supporting the cause for a constitutional amendment that would let people decide. People expect any vote on a constitutional amendment to tax and regulate electronic bingo to be very close in the House and Senate and to need some Republican support.

Black said his proposal does not expand gambling and that the bill would not override any provisions of the state constitution.

Opponents also argue that, whether the machines being operated at the Indian facilities are legal, this legislation would allow them to be played at other facilities.

Joe Godfrey, executive director of the Alabama Citizens Action Program, said the regulations for Indian facilities are fuzzy.

Supporters repeatedly said the bill would be fair and help keep jobs here. Several asked how Riley would replace the jobs and revenue if the operations there are shut down.

Rep. Pebblin Warren, D-Tuskegee, said VictoryLand is the largest employer in Macon County with about 2,000 employees. She also said tourism is a top industry in Alabama.

"Why cut our own resources that is going to bring millions of people to our state every year?" she said.

Several top officials in Greene County said financial assistance from Greenetrack has helped get the county government out of bankruptcy, the school district out of receivership, improve cities and their services, provide jobs, fund non-profits and operate schools, a nursing home, the fire department and other emergency operations.

John Hill, senior fellow with the Alabama Policy Institute, said he has studied the effects of gambling and that arguments that Alabamians are spending millions of dollars in Mississippi are not valid. He said people do travel to those facilities and go to the posh entertainment venues, but many are local.

"They want to prey on Alabamians who can't afford to travel to other destinations," Hill said.

Several ministers from throughout the state also spoke about the harsh social impacts of gambling including suicide, crime and addicts gambling their family's money away.

Godfrey said out-of-state machine manufacturers and a handful of gambling moguls in the state would be the real winners.

He said the industry has a phrase: "playing to extinction."

"They want people to sit at their slot machines and put all of their money in until they have nothing left," he said.

Rep. A.J. McCampbell, D-Demopolis, said opponents say they are worried about poor people wasting all of their money gambling, but oppose removing the state sales tax from groceries that would help many Alabamians.

"Stop being hypocritical," he said.

Rep. James Thomas, D-Selma, said those people are not worried about the "least of these."

McCampbell said the constitutional amendment could also include an earmark for funds to go to social problems created by gambling.

Mask said some of the states with large gambling operations, including Mississippi and Nevada, are in worse financial predicaments than Alabama.

Mask also expressed concern about the influence of gambling money in Alabama politics including legislative races.

Mike Mason, deputy commissioner of revenue for the state, said the department has concerns about the "sheer magnitude" of the revenue involved and with retroactive exemptions in the proposal.