As the week begins in the Alabama Senate, supporters of a comprehensive gambling bill passed by the House of Representatives argue that a one-week delay would allow the various factions and political parties to come together, resolve their differences, and find a path forward. I was hoping that it would be the case.
The week ended on Thursday with even more confusion. Lawmakers scrambled to rewrite the bill in a way that would garner Republican votes for a new bill that didn't include the health care expansion language, while also adding two new gambling-related bills (one just for lottery tickets). was being discussed. And another lottery, the Poe Arch Creek Compact bill, was rounded.
Nevertheless, a core group of senators and stakeholders found optimism that they could strike a deal for passage, with just three votes needed to pass, and those votes and possibly An agreement securing two additional votes came tantalizingly close. But there are big questions about the bill, which would allow voters to approve a statewide lottery, sports betting and up to 10 casinos in the state.
“Anyone who says they know what this bill is going to do is full of shit,” said one veteran lawmaker who has been pushing for the bill since the beginning of the session. “We knew the Senate was going to be an issue given the numbers and what we're trying to do with this bill. This is good for the state and we think we'll get back there. We need to remind people of the promises made and the consequences.”
Sources said one of the biggest issues pushing Republican senators to remove the bill is a provision that would use revenue to expand health care services in the state. This expansion is not a traditional Medicaid expansion, but rather a public-private partnership between the state and Blue Cross/Blue Shield, which invests tax dollars to provide private insurance plans to some low-income Alabamians.
Expanding health insurance is a major point of attack for the Alabama Farmers Federation, according to three legislators who have been approached by representatives of the Alabama Farmers Federation, Alpha Insurance's parent organization and political organization. Those lawmakers said they later learned that they believed the attacks were motivated by Alpha's plans to offer private-label health insurance.
Taking advantage of provisions in the new Farm Bill, Alpha hopes to offer health insurance plans to its members and possibly others. These plans are not subject to the Affordable Care Act's provisions that require a certain level of coverage and require certain cost-sharing. Therefore, the plan may be cheaper and the buyer may end up paying more.
Lawmakers said they were told that a partnership between the state and BCBS could potentially cut into the market for the program.
An Alpha spokesperson confirmed Thursday night that the organization plans to “consider options to offer health insurance to our members,” but strongly denied that the health insurance plan played any role in the federation's opposition to gambling.
“As we have previously shared, the federation's long-standing opposition to gambling is based on written policies developed by our grassroots members,” said Jeff Helms, director of public affairs and communications. “It has no bearing on any other laws or issues. The Federation opposes all forms of gambling, regardless of how the potential proceeds are used.”
But if some Republican senators draw a line under the issue, expanding health care coverage will be a particularly difficult issue. The gambling bill is a rare bipartisan bill that requires support from the super-minority Democratic Party.
Democrats have made clear from the beginning that they will not accept any bill that does not include some guarantee to address Alabama's long-term health care crisis, which claims the lives of thousands of Alabamians every year. They have already compromised by withdrawing from their direct Medicaid expansion demands and will embrace the BCBS plan to help as many Americans as possible.
That reality led lawmakers to work Wednesday and Thursday on a different version of the gambling bill that would attract enough Republicans to pass. It is unlikely that such a bill exists, and certainly not the Lottery-only bill and the Lottery Compact bill in combination with the PCI bill that have been tested over the past two days.
“It's very frustrating to work with people like this. They don't even understand basic laws or how this works,” the lobbyist told APR. “This is a waste of time. No one wants that. But polls show that the lottery is the most popular element, so they think it will save them. Just an idiot. Yes.”
According to multiple sources, even the PCI does not support the alternative plan because it is unclear whether a compact for Class III games (table games such as blackjack) is possible.
In any case, the current problem is not just medical. There also appears to be confusion and a serious lack of communication among key parties involved in negotiations over the bill. Most notably, several members expressed that they did not know where the Poarch Band of Creek Indians stood on the bill or why they opposed it.
The problem is relatively simple. PCI says it cannot support the bill unless it provides Alabama-based operators with a last-best bid opportunity for casino licenses.
“I don't see how that would be controversial,” said Arthur Mothershed, PCI's executive vice president of business development and government relations. It's about giving them a chance.” “We are asking every company in Alabama, not just us, to take this opportunity. It will reward businesses that employ Alabamians and pay Alabama taxes.”
Two lobbyists and a lawmaker say there is little resistance to adding such an amendment, and House leadership is open to accepting it if it is added to the Senate. But the right people aren't coming together to make that deal, they said.
“I believe that if the right people sit down and talk about it, that problem can be resolved in a minute or so. They agree with that,” said one lobbyist.
If this issue is resolved and Gov. Kay Ivey and Senate President Pro Tem Greg Reed apply even mild pressure to some senators, most sources who spoke to APR say the bill could pass. He said he believes there is.
This optimism is not without reason. They point to several key facts to explain why they think the deal is likely to go through. First, the bill, which only allows for a vote by the people, is extremely popular.
“My phone hasn't stopped ringing over this,” one Republican lawmaker told APR. “People who have called in saying they don't want to gamble but want to vote, and other people here have done that as well. I think it's a question of fairness for them.”
Second, this bill would bring in a lot of cash. Sen. Greg Albritton, who is pushing the gambling bill, said it's like receiving ARPA money every year forever. “A lot of the things that are really needed are going to cost money,” he says.
Third, the votes to pass the bill have existed in the past, and it would only take a little effort to get that mysterious vote up again. When Congress tried to pass a gas tax hike several years ago, a combination of incentives and threats garnered enough support to deter defections.
Finally, it has finally dawned on most legislators and most of the public that gambling is already occurring on a large scale in Alabama, and that the state is actually suffering by not passing legislation to regulate and tax it. It seems so. Absent some sort of legislation to slow the incredible prevalence of illegal gambling in the state, much of which funds organized crime, or the gambling that is attributable to tens of thousands of Alabamians. There are no serious proposals to address problems such as addiction. Participation in gambling in other states, legal establishments in this state, and currently available semi-legal establishments and websites.
“I know it's fun to be cynical and think everyone here is ignorant,” one lawmaker told APR. . They want to do something about it, and that's one of the big reasons why I think (the Bills) still have a good chance. ”