https://fmtalk1065.com/podcast/alabama-policy-institutes-stephanie-holden-smith-jeff-poor-show-wednesday-9-18-24
Yellowhammer News: API’s Stephanie Smith: Don’t put your hope in an education lottery
https://www.alreporter.com/2024/04/04/public-hearing-held-on-bill-targeting-voluntary-recognition-for-unions/
Stephanie Holden Smith: Sports Betting is a Bad Bet for College Athletes and Fans
Stephanie Smith of API sheds light on Alabama’s debate over gambling legalization, revealing stark divides within its legislature. Despite NCAA warnings and rising concerns over addiction and athlete welfare, the state’s proposed gambling laws lack essential protections. Dive deeper into this unfolding story below:
https://1819news.com/news/item/stephanie-holden-smith-sports-betting-is-a-bad-bet-for-college-athletes-and-fans
Gambling on Hold…For Now
Legislators did not consider the Senate-amended gambling legislation this week. HB 151, a constitutional amendment, and HB 152, the enabling legislation, by Rep. Chris Blackshear, R-Phenix City, would exponentially expand gambling in Alabama if passed by the Legislature and approved by voters.
The Senate versions of the bill are still an expansion of gambling. The Senate versions provide for a state-run lottery, the establishment of a gambling commission with an enforcement division, and amnesty for existing gambling establishments operating under local constitutional amendments. Current operators in Greene, Houston, Jefferson, Lowndes, Macon and Mobile counties would be legalized and enabled to continue operations. Those sites would be authorized to conduct live horse or dog racing and would also be given the ability to operate historical horse racing machines (the functional equivalent of slot machines).
In addition, the bills require the Governor to negotiate a compact with the Poarch Creek Indian tribe to allow the expansion of their operations. The Senate version of the gambling bills changed the date of the ballot initiative for this casino legalization/expansion bill to a special election slated for Sept. 10th.
The money from gambling operations would be separated into thirds (General Fund, Education Trust Fund, and AL Department of Transportation projects) and put into the queue for legislative appropriations. An amendment was added on the floor to recalculate and segregate certain revenues to pay for prisons. In short, gambling money will be used to further expand the power and scope of state government.
The debate isn’t over as the Senate passed bills must still return to the House for concurrence. If/when the House disagrees with Senate changes, a conference committee attempts to develop a compromise bill. Those new bills would have to meet approval by both houses. HB 151 and 152 are expected to be taken up by the House when the Legislature returns after spring break next week.
Gambling Legislation Update
Though the Senate’s stated aim was to limit the number of casinos in the state, the net effect of the legislation is the legalization of seven specific casinos that have been illegally operating plus the three PCI locations for a total of at least 10 casinos, an expansion of government with the creation of an appointed gambling commission (that has the ability to change the definition of gambling themselves), and the creation of a state-operated lottery whose stated goal is to maximize profits off the losses of others.
The bills require the Governor to negotiate a contract with the Poarch Creek Indian tribe and changed the date of a possible vote of the people for this casino legalization/expansion bill to a special election on Sept. 10th of this year.
Revenue from gambling through the monetary losses of fellow citizens wouldn’t be designated for scholarships for anyone’s kids or grandkids. The money would be separated into thirds (General Fund, Education Trust Fund, and AL Department of Transportation projects) and put into the queue for legislative appropriations. An amendment was added on the floor to recalculate and segregate certain revenues to pay for prisons. In short, gambling money will be used to fund legislative whims and will further expand the power and scope of state government.
Senate Republicans split their vote: 12 Republicans voted NO or abstained on both bills. 15 Republicans joined with all 7 Senate Democrats to vote for the expansion and legalization. The Republican/Democrat coalition added up to 22 YES votes. There were 21 votes needed, so the bills passed the Senate.
The debate isn’t over as the Senate passed bills must return to the House for concurrence. If/when the House disagrees with Senate changes, a conference committee attempts to develop a compromise bill. That new bill would then have to meet approval by both houses. 
Some Senators may have had good intentions to pare down the corrupt House bills that expanded gambling by millions of percentage points statewide, but they didn’t go far enough to protect the vulnerable or remove the corruption. https://1819news.com/news/item/stephanie-holden-smith-crime-pays-in-alabama
Gambling Expansion in Alabama
The expansion of gambling passed a hurdle in the Senate last night. After negotiating privately for two weeks, the Senate debated and passed their version of gambling bills in a substitute to HB 151 and HB 152. The Senate bills attempted to create a “clean lottery” bill and pull out some of the corruption from the House legislation, but there are many problems left with what passed the upper chamber. API has been busy analyzing the bills, the substitutes, and impact of possible and offered amendments. As I remarked to one of the Senators who articulated to me that he thought that the Senate version was “the most conservative set of gambling bills that have ever been considered”, that is an oxymoron.
Though their stated aim was to limit the number of casinos in the state, the net effect of the legislation is the legalization of seven specific casinos that have been illegally operating, an expansion of government with the creation of an appointed gambling commission that has the ability to change the definition of gambling themselves, and the creation of a state-operated lottery whose stated goal is to maximize profits.
In addition, the bills require the Governor to negotiate a contract with the Poarch Creek Indian tribe. The compact could allow for Vegas-style gambling at existing casinos across the state and could also provide for other locations if the tribe requests and receives approval from the Department of Interior for additional tribal lands. The Senate also changed the date of a possible vote of the people for this casino legalization/expansion bill to a special election on Sept. 10th of this year.
Of note: these gambling bills still show little/no consideration for the negative societal impact they will certainly bring. There is only a maximum of $200,000 (if there are at least that amount of unclaimed lottery prizes) specified for aiding those caught in the problem gambling that the state will now be tasked with promoting.
Also of note: Revenue from gambling through the monetary losses of fellow citizens won’t be designated for scholarships for anyone’s kids or grandkids. The money will be separated into thirds (General Fund, Education Trust Fund, and AL Department of Transportation projects) and put into the queue for legislative appropriation. In other words, the money will be used to fund whatever the legislature wants and will further expand the power and scope of state government.
Senate Republicans split their vote: 12 Republicans voted NO or abstained on both bills. 15 Republicans joined with all 7 Senate Democrats to vote for the expansion and legalization. The Republican/Democrat coalition added up to 22 YES votes. There were 21 votes needed, so the bills passed the Senate.
However, the legislative debate isn’t over as the bills must return to the House for concurrence. If/when the House disagrees with Senate changes, a conference committee develops a compromise bill. That new bill would then have to be approved by both houses. Stay tuned and let us know if you’re interested in more detail about the bills or the process.
Stephanie Holden Smith: The Casino Coast?
Baldwin County is not included in the initial list but if the voters pass a Constitutional Amendment, the un-elected, un-accountable, politically-appointed Gaming Commission will have the ability to transfer casino licenses to other locations. Locations provided in the corrupt casino bills are simply the starting point for the expansion of gambling in Alabama, not the end. There was initially a provision for local input, but that protection was taken out on the House floor. Family-friendly coastal towns are in jeopardy and will forever be a target of the gambling industry.
https://1819news.com/news/item/stephanie-holden-smith-the-casino-coast
API report breaks down ‘hotbed of corruption’ gaming legislation
The Alabama Policy Institute (API) released a report outlining concerns about the gaming bills passed by the Alabama House of Representatives last week.
The two bills include the enabling legislation, House Bill 152 (HB152) and the constitutional amendment, House Bill 151 (HB151), allowing people to vote on gaming in Alabama, including casinos, a lottery, and sports betting.
“The language proposed in the constitutional amendment (CA) is vague and intentionally positive,” the API report states. “It is not a representation of the foils of this proposal and is meant to mislead the public into voting for something they might not support otherwise.”
Among concerns on the CA bill, the API said it doesn’t define “casino-style gambling,” it allows the locations of the casinos to be changed without a vote of the people, and it could lead to the legislature increasing or decreasing the rate of taxation without a vote of the people.
Another aspect of the bill that has led to questions is the creation of the Gaming Enforcement Agency. The law enforcement arm of the gaming commission would be expected to enforce gaming laws statewide and shut down existing illegal operations. However, the agency would operate outside the scope of the Alabama Law Enforcement Agency (ALEA).
“There is no guidance as to how large that staff of officers would be, but they would have full police powers and serve outside the scope of the Attorney General and the Alabama Law Enforcement Agency,” the report stated. “The powers of the enforcement division are alarming; they would have general police powers and can use ‘any means necessary’ to enforce any state law on behalf of the commission. They would only answer to themselves and there are no restrictions regarding conflicts of interest.”
A small percentage of Gaming Trust Fund (GTF) revenues would go to local governments where casinos are located, but there are several other proposals for GTF monies. A proposal to put money into mental, behavioral and developmental health care would be for “adults with income below 138 percent of the federal poverty level and parents or other caretaker relatives of dependent children with income between 14 and 138 percent of the federal poverty level.”
Other proposed uses for the GTF are the provision of mental health care, including the care and treatment of individuals with behavioral health needs and developmental disabilities and associated prevention, treatment, and recovery services and supports.
“This is an expansion of Medicaid, or KayCare, without the label,” the API stated.
Other proposals include transportation needs, state park improvements, bonuses to state and education employees and retirees, drug court support, veteran court support and other court-related programs.
As for sports betting, the API does not support what it calls the “most addictive form of gambling.” The report also points out there is no limit on the number of sports betting licenses in the legislation. According to the API, those issues could open up the possibility for more fraud and abuse.
The API also criticized parts of the legislation that would legalize a statewide lottery. The report pointed out the lottery commission would consist of seven members appointed by the governor.
“The Lottery Corporation, solely appointed by the Governor would be paid employees, but […] they would be exempt from the state bidding laws,” the report stated.
The API said the Lottery for Education Fund would allow a scholarship program for public two-year community and technical colleges.
“Those seeking to vote for a lottery to fund college scholarships in the mold of the Georgia HOPE scholarship program will be disappointed to find out that scholarships for Alabama students at 4-year colleges aren’t included, though a direct funding stream for 4-year colleges for research purposes is included,” the report said.
The API called the legislation a “hotbed of corruption” and called for many changes.
High Stakes Game: Lawmakers eyeballing loopholes that could bring casino to Baldwin County
As written, the latest gaming bill introduced in the Alabama Legislature opens the possibility of gambling in Baldwin County. While some welcome the idea, others are pushing for change to the bill’s language to keep a casino out of the county.
After years of speculation that the Poarch Band of Creek Indians (PCI) want to bring a casino to OWA Parks & Resort in Foley, opponents say two loopholes in the bill offer the opportunity.
However, the tribe told 1819 News there are still no plans for a casino, but there are concerns about the latest bill.
“As we have said consistently, we do not have plans to build a casino at OWA,” PCI said in a statement to 1819 News. “That said, we also know the proposed gaming legislation is obviously the product of hard work. However, we have well-founded concerns about how it will affect our Tribe and our businesses in its current form.”
The latest gaming bill sponsored by State Rep. Chris Blackshear (R-Phenix City) lists locations for the Alabama Gaming Commission to issue licenses. While Baldwin County is not listed as a location, there are two options for the transfer of licensing.
“They left two doors open,” Alabama Policy Institute (API) president and CEO Stephanie Holden Smith told 1819 News. “In Baldwin County specifically, I know there are legislators who have voted for this type of legislation in the past in order to keep the casinos out of Baldwin County. But unless something changes in the bill, there are two different ways that a casino could be located in Baldwin County.”
The provision would allow the commission to issue a license to another county if Houston or Lowndes Counties are not awarded a license by June 1, 2029.
“Those two licenses could be transferred elsewhere,” said Holden Smith.
The second option would be a straightforward transfer. The bill states the commission may approve a transfer of a license, including changes to the owner or investors. The transfer can be made to a different county or municipality as long as the county or municipality approves the facility. The approval can be done by local resolution or countywide or municipal vote.
There are restrictions on where new casinos can be opened. A new gaming facility could not be within 50 miles of an existing gaming establishment.
Still, Baldwin County would be eligible for a transferred license. Specifically, the Mobile facility would be 58 miles from OWA, and the existing Wind Creek Casino & Resort in Atmore is 69 miles from OWA.
State Sen. Chris Elliott (R-Josephine) said this provision is one of many he wants to question.
“I have already seen a number of things that would need to change to have my support,” said Elliott. “As it sits now, no, it would not have my support and I think that’s true for a number of other senators that would be crucial for this bill to pass.”
“I don’t really understand the logic there with the milage,” Elliott continued. “What are they trying to do there? Obviously, you don’t open up two Chick-fil-A’s, one across the street from the other so, to the extent that it’s one of those, ‘let’s not put one beside the other,’ I understand that but sometimes there are other motives behind these things. You really need to take time and look behind those motives and find out what’s really trying to be accomplished here.”
State Rep. Alan Baker (R-Brewton) told 1819 News he believes the people should decide, but he also wants to hear more dialogue from the authors of the bill.
“To me, I am on the premise that the people need to be able to decide if they want gaming and if they don’t want it and to what level,” Baker said. “… I think we need to continue to discuss this going forward.”
“There have been concerns that have been shared by some Baldwin County legislators, which I am part of that Baldwin delegation, which they want to move that from the 50 miles to 75 miles, or such like that,” he continued. “So, I am very open to some of the considerations we might have to change the bill.”
Holden Smith believes operators would want a casino in the largest tourist destination in the state.
“You can’t recreate the beach,” Holden Smith added. “So, if the door is open, the beach is always going to be a target just because that’s our main place that people go as a resort area for the state.”
Elliott maintains he does not believe it is in the cards to bring gaming to OWA.
“I still maintain I don’t think that casino gambling is consistent with the brand that PCI has certainly tried to establish there but I can certainly understand peoples’ concerns about that. I am not interested in having a casino in Baldwin County. I would want to make sure that the legislation, if passed, was very clear that that was not something we would have in Baldwin County.”
While he doesn’t believe PCI has plans to open a casino at OWA, Elliott said plans are often shrouded in secrecy, so lawmakers must pay close attention.
“You have to watch for that but it’s true with any legislation,” Elliott said. “You have to look at the words on paper and the motive behind that. It’s a wise thing to do in the legislature to look at the reasoning behind something instead of just what it says in front of you because there may be some motive.”
Birmingham attorney Eric Johnston, who has followed gaming legislation and drafted bills on other matters in the past, said he also has concerns about the bill. Johnston also pointed out that the Alabama Gaming Commission would have little oversight and its own law enforcement arm. Elliott said this is another example of why votes matter.
“These board members, this commission is appointed by elected officials and will be heavily influenced by the governor’s appointments, who has more than any other top-ranked officials,” Elliott explained. “So, the governor is going to have a lot of influence over the gaming commission.”
Other issues Elliott believes should be considered are how existing gaming interests would be impacted and how new gaming interests could be expanded.
With the addition of multiple casinos, Holden Smith said she thinks it’s important to point out that once passed, there are still many aspects to casinos that could be changed down the road.
“Overall, I think the people need to know that there are specific locations but they’re not set in stone,” Holden Smith said. “Once you create that gaming commission that can make the decisions on things like that, it’s going to be very difficult to control and there is no other vote of the people, ever.”
The bill would bring multiple casinos around the state, and Elliott said this bill is one of the most comprehensive he’s seen over the years.
“I think this bill is very well written,” said Elliott. “If their intention was to be comprehensive and to structure the legislation in a workable manner, then I think this accomplishes that goal. I would say to the authors and to the sponsors in the House, they’ve done a very good work getting a good framework together. Now we can start looking at the individual pieces and see if it’s good for the people of Alabama.”
“It is better than some gaming legislation that I have seen in the past,” Elliott added. “But it is way broader than other things we have seen in the past, too. It is a significant expansion of gaming. We’re not dipping our toe into the water; we’re diving headfirst into it.”
Elliott encourages folks to remember this is very much a process, and it is important to watch what is going on in the state legislature.
“Just because something’s in the bill doesn’t mean it’ll stay in the bill. This will be a good civics lesson to watch things and see how it works.”
PCI said it would continue to speak with lawmakers about concerns.
“We remain optimistic that we can have detailed conversations with legislators and make changes that will continue to allow us to create jobs, spur economic development, attract tourism dollars, and help our neighbors across the State in times of need,” PCI stated.