Gambling Foes Line Up For Fight

March 9, 2009 Gaming foes line up for fight By Sebastian Kitchen Supporters and opponents of a recently introduced gambling bill already are gearing up for a fight. Proponents maintain that the bill will limit, regulate and tax gaming in the state. And, they say, the $200 million in revenue they anticipate from taxing gambling could be used to help education and Medicaid. The opposition, on the other hand, is arguing that the bill would legalize electronic bingo in the state, which could pose damage to society and families. "It's (gambling) here. You can talk about it all you want, but you can drive within a few miles of the State House dome and find it going on," said Paul Hubbert, head of the Alabama Education Association. "It is no longer a question of whether we are going to have it. The question is whether we are going to get any revenue from it." Gov. Bob Riley, a Republican, argues that the money generated would be less than 1 percent of the combined $12 billion in state and federal funds used for education in Alabama. "For less than 1 percent, I don't believe we should allow more crime, misery and corruption into Alabama," Riley said in a statement after the bill was introduced Thursday. The governor also questioned, why, if the supporters believe gambling is good for the state, they feel the need to restrict it. "It's because deep down they know the truth: gambling might make casino operators into multi-millionaires, but it hurts people, families and our communities," he said in the statement. "It brings with it more misery, more crime and more corruption. Alabamians know this and that's why every time all the people have had a chance to vote on gambling, they've rejected it." The bill would repeal local constitutional amendments and lists specific counties or "points of destination" where the gambling centers could be operated, including Calhoun, Etowah, Greene, Houston, Macon, Mobile and Walker counties, and the cities of Birmingham and White Hall. Those points are intended to boost tourism, according to the legislation. The Poarch Creek Band of Indians run gambling operations in Montgomery, Wetumpka and Atmore. The bill also encourages the governor to sign a compact with Indian-operated gaming centers, which are governed by federal law, to collect taxes from their operations. The sponsor of the bill, state Rep. Marcel Black, D-Tuscumbia, said people who say the bill would expand gambling have obviously not read it. Black said his goals are to limit the locations and generate "revenue that is desperately needed," adding the state's gambling industry currently "doesn't pay a cent in tax." He said projections show the bill would generate about $200 million -- $140 million for education and $60 million for Medicaid. "We need to tax this industry and get some benefit from it," he said. "It is out there now. It is not going away. It is only going to get more widespread." Hubbert, who is also a vice chairman of the Alabama Democratic Party, said the businesses are operating under local constitutional amendments, so he assumes they are operating legally. He sees no reason they should not be paying taxes. As head of the teachers union, Hubbert said he strictly looks at the issue from a revenue standpoint. Schools are not funded at the level they should be, he said. "We can do a lot with that money," Hubbert said. Todd Stacy, press secretary for Riley, responded that "making our schools dependent on predatory gambling is a bad idea." Stacy also said that the "Paul Hubbert-Milton McGregor casino bill" would legalize slot machines, refuting Black and Hubbert's point that the money the bill is projected to generate for Medicaid could be used to draw down more federal funding. McGregor, the president and chief executive at the racetracks in Shorter and Birmingham, could not be reached for comment. Black and Randy Brinson, chairman of the Christian Coalition of Alabama, said they wish the Legislature had passed the previous version of the bill, which Black said would have stopped gambling "from expanding and creeping into every nook and cranny in the state" two years ago. There would have only been bingo at the then four dog and race tracks in Macon, Green, Jefferson and Mobile counties if that bill had passed, Black said. Now, there is gambling in Etowah, Houston and Walker counties, according to Black and Brinson. Black said his bill limits gambling and would restrict the number of facilities. "I do not want people to be faced with it throughout the state every time they go to buy a loaf of bread or a carton of milk," he said. He said people do not try to find ways to tax prostitution or drugs. "We try to get rid of them," Godfrey said. "We do not want to tax these addictive machines." The action program, also known as ALCAP, has a petition on its Web site that people can sign in opposition to "predatory gambling." Godfrey also referred to the gambling as predatory and as a regressive tax. "It is preying on people. The people who can least afford to play are the ones who play the most," he said. In some counties that are struggling financially, there has been political pressure to open up gambling as a source of revenue, said Brinson, who noted that this is another reason he wishes the previous version had passed. He said action is needed to stop the incessant fight over where gambling should and should not be. So, Brinson said, gambling has expanded while there has been no action by the Legislature, which he said has yet to clearly define gambling in this state. He also said there is no significant penalty to deter people from illegal gambling.There needs to be strict zoning and enforcement, he said. "We still are not containing gambling by maintaining the status quo," Brinson said, adding that the Christian Coalition of Alabama does not and never has supported gambling. He said he has yet to take a position on Black's legislation, but said there is the argument that it could be better than doing nothing as gambling continues to expand in the state. He said he is concerned about the social costs of gambling and said there needs to be education about those in the communities where it exists. Two years ago, Black said some people opposed his bill and said they might be supportive if it created a statewide gaming commission, which he proposed this year. Alabama does not have a state gaming commission. Hubbert said neighboring states have gaming, from which they collect revenue and often distribute it to education. Alabama has gaming, but the "difference is we get nothing for it," he said. "We don't get anything for our schools. We don't get anything for our senior citizens." Godfrey said he has not had an opportunity to thoroughly examine the bill, but is quite concerned it would legalize electronic bingo. But some state officials disagree on whether electronic bingo is legal at all, with Riley on one side and Alabama Attorney General Troy King, who Riley first appointed to that position, believing it is legal based on current state law. Riley formed a task force on illegal gambling in December headed by former Jefferson County District Attorney David Barber. Joe Godfrey, executive director of the Alabama Citizens Action Program, said taxing electronic bingo would legitimize something he considers illegal. Godfrey said he hopes the task force is able to push a case to the state Supreme Court, which he hopes will rule the machines are illegal "and get rid of all of them." "That is our prayer and hope," he said.If the bill passes, those legal cases would be a moot point, Godfrey said. He said the task force was formed in December and its work will take time. "The battle is on," Godfrey said. "Somebody will bring a lawsuit and hopefully get it to the state Supreme Court. It will take time for all of that to develop. We believe if the Legislature will hold off on passing these bills, it will give the governor's task force time to get some of this done and get rid of these machines once and for all." Chance of passage Both sides realize that passing gambling legislation faces an uphill battle. Opposition begins to line up at the State House any time a gambling bill is introduced, whether local or statewide, and debate on those bills has led to multiple shutdowns. Democrats would need at least some Republican support to pass a constitutional amendment, which requires 63 votes in the House and 21 votes in the Senate. There are currently 61 Democrats in the House. Black acknowledged bills similar to his have support and "strong opposition," so passing his legislation will be tough. But he said he did alter the bill to incorporate suggestions, such as the gaming commission. Hubbert said AEA is "going to ask our friends to support it." The cuts to education would have been catastrophic without the federal stimulus, he said, with a need to cut more than 7,000 teachers and other education personnel. When times are good, he said, Alabama ranks in the 40s among states in education. "Even after we get out of the recession, we will still be low compared to other states in terms of funding our schools," Hubbert said. Godfrey worries that, if the constitutional amendment passes, the playing field in trying to sway voters statewide would be uneven. He said those behind Indian gaming operations, McGregor, other operators, and those who manufacture the machines would pump millions into the state to try to convince voters to approve them. Godfrey also said the churches would be the ones fighting the gambling and would be forced to take money from helping mission programs. And if gambling expands, the churches would be the ones left to minister to those who have broken families, addiction issues, and who have lost their home and job. "It's not a fair fight," Godfrey said. " ... It's going to be hard for churches to compete against that (money). We're going to have a hard time getting our message out, a hard time convincing people this is the wrong direction for Alabama. And once it is here, it will be very difficult to get rid of it." Other sponsors of the House bill include the chairmen of the House General Fund and education budget committees, Rep. John Knight and Rep. Richard Lindsey, respectively. Sen. Quinton Ross, D-Montgomery, sponsored the Senate version.