When asked to comment the financial issues of Alabama, Rep. Craig Ford said that the lottery games and the compact of the Poarch Band of Creek Indians are the two factors believed to have a positive effect on complicated financial matters of the state.
That is why their legislation will be among his top priorities and he is going to put the matters back on the agenda as soon as the next session takes place.
Ford announced that he is planning to propose two pieces of legislation, one of which is pretty similar to the lottery bill he introduced a few years ago.
Ford also added that currently, Alabama residents are likely to go to neighboring states and spend money on lottery games. However, the sums they spend can be kept within the state.
Instead of letting the money slip from state’s coffers, it can be invested into education. Scholarships can be granted to prominent students in Alabama-based universities.
As far as the revenue from the gambling compact is concerned, it could be invested in the General Fund, which has been pretty unstable lately.
Ford went on and said that it is high time for the state of Alabama to compensate for the losses and recover the funds that used to be available in the General Fund and Education Trust Fund. Ford considers the solutions he proposed to be absolutely adequate bearing in mind the situation with the neighboring states.
He also added that Alabama-based residents should be given the chance to vote on the lottery matters. He even urged the governor to start talks with the Poarch Creek Indians and see what the outcome can be.
A few weeks ago, the vice chairman of the Poarch Band of Creek Indians, Robert McGhee, said that they are always willing to discuss the concerns of Alabama officials as well as the idea of signing an agreement for sharing revenue once the gambling market is expanded.
He also added that the governor should make the first step towards starting a discussion. There is a possibility for an agreement, beneficial to the tribe and the state, to be reached.
It is a well known fact that the governor is not quite convinced that the expansion of the gambling market will bring the expected results. Nevertheless, last month, he promised to consider a state-tribal compact and lottery.
Ford also said that the lottery games are expected to generate approximately $250 million annually. As for the revenue the gaming compact is going to generate, it is not that easy to be predicted. Nevertheless, data shows that the net earnings of the Poarch Creeks in 2012 were $322 million.
In conclusion, Ford said statistics show that in some other states, the taxes tribal casinos are supposed to pay vary between 5 and 10% of the revenue. Therefore, it means that Alabama could get approximately $32 million from gambling activities once the bills get an approval.
