On Thursday morning, the first bill in the long-awaited comprehensive gambling bill, a bill that would create a constitutional amendment, will finally make its debut in the Alabama General Assembly.

The first copies of the proposed constitutional amendment carried by Rep. Chris Blackshear began circulating Wednesday afternoon. There were few surprises or details in this bill.

The bill primarily fulfills long-promised promises, including legalizing casino gambling in 10 locations, implementing a statewide lottery, legalizing sports betting, and enforcing gaming laws. It proposes the creation of a Gambling Commission with a law enforcement agency. All of this, of course, depends on whether voters approve the amendment on the November ballot.

The bill has few specifics, but Blackshear and Rep. Andy Whitt, chairman of the House Gaming Committee, provided some additional details during a press conference Wednesday afternoon. .

“We are confident that we have covered all the bases here, from revenue payments to regulation to licensing. I am proud of our work and look forward to shepherding this bill through the legislative process.” ,” Blackshear said.

Here's what we know so far:

What you get

This gambling law was established in Macon County, Greene County, Lowndes County, Mobile County, Houston County, Birmingham, three present-day Poarch Band of Creek Indians, and a fourth Poarch Creek in the Northeast. It proposes legalizing 10 casino facilities. part of the state. (The fourth site, and the legalization of Class III gaming at the tribe's current location, are all dependent on the tribe entering into an agreement with the state of Alabama. The framework for such an agreement is in place, and likely Rest assured, it will be finalized by the end of the year (it will take several weeks for the constitutional amendment to be approved by voters in November).

Additionally, the bill would create a statewide lottery that would ban a variety of electronic lottery games, including e-play and online scratch-off games. Sports betting will also be allowed, and it looks like mobile betting will also be allowed.

But perhaps most importantly, the legislation also creates a gaming commission with an attached law enforcement agency. It's unclear whether future legislation will increase penalties for illegal gambling, but it's probably a safe bet. The new commission will be responsible for licensing, regulating and policing all gaming in the state. If properly implemented, policing could effectively reduce gambling in the state than it currently does.

tax

According to an information sheet provided to the media at the press conference, the tax rate on the casino's net revenue is 24 percent. It is unclear whether this is an all-inclusive tax rate or an average of multiple tax rates for different types of games. (For example, many states impose higher tax rates on games such as slots than table games because it is more costly/risky for casinos to operate table games.) We recognize that if run well, it means it will attract better customers and generate more revenue for the state (both inside and outside the casino – than other games with less skill).

We know that at least one type of skilled bet has different rates: sports betting. 17% of net income is taxed. This is higher than some states, but within typical ranges.

Both fees are on the high side for a startup state, even in a state with limited licensing.

payment

The Gambling Commission estimates that the combination of lottery, casino and sports betting will bring in between $800 million and just over $1 billion annually, excluding license fees. That equates to about $300 to $400 in casino revenue, $200 million from the Lottery, $300 million from the Poe Arch Creeks agreement, and $10 million from sports betting. (Sports betting projections for this state, which is notorious for illegal sportsbook betting, appear to be low, especially when mobile betting is allowed.)

All lottery proceeds go to the Lottory For Education Fund, which uses the funds to pay for various education-related expenses. Also mentioned in the information provided Wednesday were school security fees and a two-year college scholarship program. There was no mention of scholarship programs similar to Georgia's HOPE Scholarship Program, which provides scholarships to high-achieving, low-income students.

All game proceeds are essentially donated to a fund for use by Congress. The fund, named the Gambling Trust Fund, will fund mental health care, local health care, roads and bridges, state retirement bonuses, state parks, cost-of-living raises for state employees and teachers, and other non-recurring expenses. .

commission

The Gaming Commission that would be established by this bill would consist of nine members, four of whom would be appointed by the Governor and two of whom would be appointed by the Speaker of the House (including one from a list provided by the Minority Leader). Once seated, the members of the committee will An executive director will be hired.

The Executive Director will then be responsible for hiring a gaming enforcement officer to oversee the law enforcement aspects of the Commission. According to the information provided, the organization will include directors, auditors, investigators, and administrative staff. The exact number of executives and employees is not detailed.

But it's clear that lawmakers want the commission to have as much power as possible to regulate and control gaming in the state. A bill that increases penalties for illegal gambling from a misdemeanor to a felony is almost certain to become law.

random details

Casinos licensed under this law must agree to spend at least $35 million on facility construction/upgrades within the first year. It's unclear whether that applies to the Poe Arch Creek facility.

The cost of a casino license is set by the commission. The law only sets a minimum cost of $5 million, with the maximum amount remaining undisclosed.

The law would provide the state with information about the ownership and types of games being played for gambling establishments currently operating under local county amendments, such as dozens of locations in Jefferson and Greene counties. They are allowed to continue operating until 2027.

All paper bingo halls and all raffles must be registered with the Gaming Commission.