The Alabama Tourism and Marketing Committee voted on Thursday in favor of a bill that would allow the provision of lottery and casino options on the territory of the state.
The proposal was sponsored by Senate President Pro Tem Del Marsh and calls for casino facilities to be added to the four greyhound tracks in Alabama. The bill now moves to the Senate and needs the approval of three-fifths of the Senate and House of Representatives members.
If Sen. Marsh’s proposed legislation is passed, a statewide vote will be held in September. The bill’s sponsor, however, pointed out that he was not sure whether a total of 21 members of the Senate would vote in favor of his proposal. Yet, he said that the state’s budget deficit might urge some legislators to consider supporting him.
During the Thursday committee meeting, certain lawmakers suggested that a fifth casino could be launched in Houston County, as the area needs the jobs that would be created. Sen. Marsh, however, pointed out that the committee would have not approved the bill, if the Houston County gambling facility had been added to his proposal. He commented that supporters of the idea might call for a fifth casino when his bill is reviewed by the Senate.
If the proposal is passed into law, as many as four casinos would be added to the state’s greyhound tracks in the Macon and Green Counties, as well as in Mobile and Birmingham. In other words, Class III gaming would be legalized on the territory of the state, which means that venues would be allowed to provide slot machines and table games, such as craps, blackjack, etc.
Under Sen. Marsh’s proposal, Alabama would impose a 13% gross receipts tax on gambling activities and a 4% one on providers of machines and other equipment for Class III gaming options. The proceeds would go to the General Fund. The counties where the casinos are to be located would receive a 1% tax on gaming revenue.
Sen. Marsh’s bill also calls for the legalization of lottery on the territory of the state, with revenues going to a Lottery Trust Fund. The legislator cited a report compiled by the Auburn University at Montgomery and commissioned by his office, according to which lottery operations would annually generate more than $300 million in revenue.
According to the report, the casinos would create about 11,000 jobs and would annually generate $64 million.
Sen. Marsh also proposed the creation of an Alabama Lottery and Gaming Commission that would be in charge of the state’s gambling operations. It would consist of five members, who will be appointed by the governor and Senate members.
