[4alabama] 20 % Tax on Gross Gaming Revenue - Funding for Medicaid

[Judy R. Roy]

Bill would let tracks offer electronic games
Thursday, March 06, 2008
KIM CHANDLER
News staff writer
MONTGOMERY - The House Tourism and Travel Committee on Wednesday approved a
proposed constitutional amendment to bring electronic gaming to the
Birmingham and Mobile dog tracks.

The proposal, if legislators and voters approve, would allow high-stakes,
rapid-play electronic bingo machines at two tracks. The committee approved
the proposal on a voice vote, sending the legislation to the full House of
Representatives for debate.

Rep. Marcel Black, D-Tuscumbia, said his bill would put the gaming machines
in locations where local voters have approved gambling and stop the
proliferation of machines across the state.

"They're all over. They are soon going to be on every street corner," Black
said.

Black's bill would put a 20 percent tax on gross gaming revenue after
winnings are paid to customers, with the state's Medicaid program getting
the proceeds.

Black estimated the machines would raise $55 million annually in state
revenue. That amount, when combined with federal matching money, would
provide more than $170 million a year for Medicaid, Black said.

At a public hearing Wednesday, supporters said the games also would be an
economic boost to Birmingham. An opponent argued gambling would take money
from the pockets of poor families.

Electronic bingo already is allowed at dog tracks in Macon and Greene
counties.

A matter of fairness:

Birmingham Mayor Larry Langford, in a prepared statement read to the
committee, said it's unfair that two tracks have the machines and two don't.
Langford said gaming revenue is being lost to nearby states.

"Every day thousands of people drive through Birmingham on their way to
Mississippi and Louisiana to gamble," Langford said.

W. Kip Keefer, executive director of the Birmingham Racing Commission, said
the Birmingham Race Course should be a "crown jewel" of entertainment, but
is more like a "besieged fortress" because of competition from the other
tracks with games.

Supporters also said allowing the games at the tracks would bring
thoroughbred racing back to Birmingham.

Pockets of losers:

Gambling opponent Dan Ireland said families would pay the cost if gaming
machines are legalized at the two large facilities.

"I want you to be mindful of the fact, and I'm sure you are, that the money
that's talked about comes from one source - the pockets of losers," Ireland,
executive director of the Alabama Citizens Action Program, told legislators.

Ireland said the complicated bill reminded him of his first attempt at
reading Hebrew.

"When I got through reading, I didn't know what I'd read," he said.

The Poarch Band of Creek Indians operates electronic bingo at gaming halls
in Atmore, Montgomery and Wetumpka. Tribe officials speaking at the public
hearing said aspects of the bill give an unfair advantage to track owners.

The tribe has sought an agreement with the state for casino-style games.

"We believe we can offer you a better deal that's better for the entire
state of Alabama," tribe official Arthur Mothershed told legislators.

Black's bill would create a legal definition of "racetrack bingo equipment."
The bill would make it a Class C felony to operate the machines anywhere but
at the tracks or at a bingo operation in Lowndes County that already has
been approved by constitutional amendment.

Black said charity bingo could still be played in places such as Walker
County, which has its own bingo amendment, but the operations would have to
use paper bingo cards or machines that are slower than the faster, glitzy
machines that would be allowed at the tracks.

Earl Hilliard, former congressman and lobbyist opposing removing the
machines in Walker County, said Black's bill would give track owners a
monopoly. "I have no problem with revenue being generated from gaming in
Alabama," Hilliard said. "I do have a problem with the monopolistic approach
that this bill takes."

Black said he hoped to get a House vote within the next two weeks or so.

He told legislators that, because his proposal is a constitutional
amendment, voters would have the final say on whether to allow the games.
"By your vote you're allowing the people of the state to make this important
decision," Black said.


E-mail: kchandler at bhamnews.com



© 2008 The Birmingham News
© 2008 al.com All Rights Reserved.
Judy R. Roy
Independent Living Resources of Greater Birmingham
206  13th Street S.
Birmingham, AL  35233-1317
Phone  205.251.2223  ext 102
Email  bhamilc1 at bellsouth.net
There are only four kinds of people in the world: those who have been
caregivers; those who are currently caregivers; those who will be
caregivers; those who will need caregivers. - Rosalynn Carter

-------------- next part --------------
Bill would let tracks offer electronic games
Thursday, March 06, 2008
KIM CHANDLER
News staff writer
MONTGOMERY - The House Tourism and Travel Committee on Wednesday approved a proposed constitutional amendment to bring electronic gaming to the Birmingham and Mobile dog tracks.
The proposal, if legislators and voters approve, would allow high-stakes, rapid-play electronic bingo machines at two tracks. The committee approved the proposal on a voice vote, sending the legislation to the full House of Representatives for debate.
Rep. Marcel Black, D-Tuscumbia, said his bill would put the gaming machines in locations where local voters have approved gambling and stop the proliferation of machines across the state.
"They're all over. They are soon going to be on every street corner," Black said.
Black's bill would put a 20 percent tax on gross gaming revenue after winnings are paid to customers, with the state's Medicaid program getting the proceeds.
Black estimated the machines would raise $55 million annually in state revenue. That amount, when combined with federal matching money, would provide more than $170 million a year for Medicaid, Black said.
At a public hearing Wednesday, supporters said the games also would be an economic boost to Birmingham. An opponent argued gambling would take money from the pockets of poor families.
Electronic bingo already is allowed at dog tracks in Macon and Greene counties.
A matter of fairness:
Birmingham Mayor Larry Langford, in a prepared statement read to the committee, said it's unfair that two tracks have the machines and two don't. Langford said gaming revenue is being lost to nearby states.
"Every day thousands of people drive through Birmingham on their way to Mississippi and Louisiana to gamble," Langford said.
W. Kip Keefer, executive director of the Birmingham Racing Commission, said the Birmingham Race Course should be a "crown jewel" of entertainment, but is more like a "besieged fortress" because of competition from the other tracks with games.
Supporters also said allowing the games at the tracks would bring thoroughbred racing back to Birmingham.
Pockets of losers:
Gambling opponent Dan Ireland said families would pay the cost if gaming machines are legalized at the two large facilities.
"I want you to be mindful of the fact, and I'm sure you are, that the money that's talked about comes from one source - the pockets of losers," Ireland, executive director of the Alabama Citizens Action Program, told legislators.
Ireland said the complicated bill reminded him of his first attempt at reading Hebrew.
"When I got through reading, I didn't know what I'd read," he said.
The Poarch Band of Creek Indians operates electronic bingo at gaming halls in Atmore, Montgomery and Wetumpka. Tribe officials speaking at the public hearing said aspects of the bill give an unfair advantage to track owners.
The tribe has sought an agreement with the state for casino-style games.
"We believe we can offer you a better deal that's better for the entire state of Alabama," tribe official Arthur Mothershed told legislators.
Black's bill would create a legal definition of "racetrack bingo equipment." The bill would make it a Class C felony to operate the machines anywhere but at the tracks or at a bingo operation in Lowndes County that already has been approved by constitutional amendment.
Black said charity bingo could still be played in places such as Walker County, which has its own bingo amendment, but the operations would have to use paper bingo cards or machines that are slower than the faster, glitzy machines that would be allowed at the tracks.
Earl Hilliard, former congressman and lobbyist opposing removing the machines in Walker County, said Black's bill would give track owners a monopoly. "I have no problem with revenue being generated from gaming in Alabama," Hilliard said. "I do have a problem with the monopolistic approach that this bill takes."
Black said he hoped to get a House vote within the next two weeks or so.
He told legislators that, because his proposal is a constitutional amendment, voters would have the final say on whether to allow the games. "By your vote you're allowing the people of the state to make this important decision," Black said.
E-mail: kchandler at bhamnews.com
© 2008 The Birmingham News
© 2008 al.com All Rights Reserved.
if (window.print) window.print();
if (_pdata){ sendpdata(); }
if ( (document.cookie).indexOf('v1st')>=0 && (document.cookie).indexOf('GTC=')<0 ) { if ( (document.referrer).indexOf(document.domain)<0 ) { document.write('<img src="http://www.al.com/cgi-bin/stats/verify.cgi?Log=1&v1st=' + VSgetCookie('v1st') + '" border="0" width="1" height="1">'); } }
var tcdacmd="dt";
Judy R. Roy
Independent Living Resources of Greater Birmingham
206  13th Street S.
Birmingham, AL  35233-1317
Phone  205.251.2223  ext 102
Email  bhamilc1 at bellsouth.net
There are only four kinds of people in the world: those who have been caregivers; those who are currently caregivers; those who will be caregivers; those who will need caregivers. - Rosalynn Carter