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Rex Jones: Without the lottery, Alabama is losing



Currently, Alabama lawmakers are deciding whether to vote on a constitutional amendment that would bring millions of dollars in revenue to the state, strengthen customer protections and provide a safeguard for the state's currently unregulated gambling industry.

But while we wait for action from the state Legislature, the estimated $1.1 billion Mega Millions jackpot won last Tuesday and the now surging $975 million Powerball jackpot serve as stark reminders that Alabamians and small business owners are suffering from outdated policies.

These policies force Alabamians to drive to Florida, Georgia, Mississippi and Tennessee to buy lottery tickets, and small business owners who want to sell lottery-related products miss out on a 7% retail commission that goes directly back into their profits.

Every time the jackpot exceeds $1 billion (10 times since 2016, and four times last year alone), the state incurs huge losses. Last year, Powerball and Mega Millions jackpots exceeded $700 million 26 times, bringing in a combined total of more than $1.9 billion for the states.

But not in Alabama. Instead, we're leaving money on the table.

We know that Alabama residents are already gambling and playing the lottery in other states. Stores along the Alabama border in Mississippi, Georgia, Tennessee and Florida often have the largest sales in their respective states. This is a clear sign that Alabamians are crossing the border in large numbers to buy lottery tickets. This allows neighboring states in all directions to rake in money that could benefit Alabama.

When customers take their lottery money out of state, they also buy food, alcohol, snacks, and gasoline. According to a survey by the National Association of Convenience Stores (NACS), 95% of lottery customers purchase at least one extra item in the store. In fact, in-store spending by lottery customers at convenience stores is 65% higher than customers who do not buy lottery tickets.

This is another great loss for the state of Alabama, our employees and their families.
Small businesses are taking the hit: About three-quarters of Alabama's convenience stores are independently owned and operated, the highest percentage of any state in the nation.

For the first time in 25 years, Alabama has the opportunity to vote on whether to run a lottery, giving state residents a chance to have a direct stake in a jackpot that can total more than $1 billion. Alabama is one of five remaining states, along with Nevada, Utah, Hawaii and Alaska, that does not have a lottery.

We haven't been this close in a quarter of a century, but if some lawmakers have their way, this opportunity will be lost. Now is your chance to make your voice heard. Call your state Senators and Representatives and tell them you want a chance to vote and give Alabama the opportunity that Florida and other states have had for over 30 years.

For Alabama's nearly 3,700 convenience stores, this means more than the convenience of being able to purchase lottery tickets in the comfort of your own home instead of across state lines — this is a choice we all need to make.

Rex Jones is president of the Association of Convenience Stores.

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