Daily Archives: May 4, 2021

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A Montgomery County Circuit Court Judge ruled Friday that electronic bingo played in Macon County is legal, because thats what voters who approved a constitutional amendment in 2003 intended.(Photo: Advertiser file)

A sweeping measure that would allow voters to decide whether to create a lottery and bring legal casino-style gambling to Alabama won House committee approval Tuesday, setting up a major decision for the chamber in the last days of the session.

But the House Economic Development and Tourism Committee's approval of the amendment, SB 319,came after an hourlong public hearing dominated by opponents of the measure, including a former Alabama governor, who raised concerns about the bill's structure and its impact on excluded facilities in Greene and Lowndes counties.

"Youre putting us in a hole, youre burying us, and I think that is not fair," said Rep. Kelvin Lawrence, D-Hayneville, whose district includes Lowndes County.

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The amendmentis sponsored by Sen. Jim McClendon, R-Springville but is a resurrected version of a sweeping lottery and gambling package sponsored by Sen. Del Marsh, R-Anniston, that the Senate narrowly rejected in March.

The amendment would create a state lottery, with proceeds going to education, and allow casino-like gambling at VictoryLand in Macon County; GreeneTrack in Greene County; the Birmingham Race Course in Birmingham; the Mobile Greyhound Park in Mobile; The Crossing at Big Creek, outside Dothan in Houston County, and a site in Jackson or DeKalb County, intended for the Poarch Band of Creek Indians, a federally-recognized tribe.

Rep. Chris Blackshear, R-Phenix City, who is handling the bill in the House, said there were "three facts" about Alabama gambling that everyone could agree on.

"One is gamblingexists in the state of Alabama today," he said."Thats a fact. Two, its mostly unregulated, especially unregulatedat state level. Three, the state sees no revenue from the gambling in the state."

An Alabama Gaming Commission, created to regulate gambling in Alabama, would decide the fate of smaller operators, like White Hall Resort and Entertainment in Lowndes County and smaller gambling operated in Greene County.

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McClendon's bill also directs the governor to pursue a gaming compact with the Poarch Band, who operate casinos on tribal land in Atmore, Montgomery and Wetumpka.

A fiscal note with the bill estimates lottery revenues ranging from $194million to $274million a year. The funds would go to a Lottery Trust Fund, with money going to a postsecondary scholarship program. The specifics of the program are not spelled out, but the bill requires the program to have a debt forgiveness components for college students pursuing "in-demand" occupations and who work in the state for a specific period of time.

Gaming and sports betting would be taxed at 20% a year, with the potential to raise the tax by 2% every five years, up to a maximum of 30%. The Legislative Services Agency estimates the tax would generate $269 to $403 million a year.

Money would be split between information technology (with the first $750 million going to broadband); rural health care, and mental health services.

The bill drew opposition from former Sen. Phil Williams with the Alabama Policy Institute, a conservative organization, who said it represented unwarranted government intrusion.

"It has the government picking winners and losers, he said."It literally takes the names of businesses and embeds them in our Constitution."

Gambling bills in the past have foundered amid disputes between the Poarch Band and the owners of dog tracks like VictoryLand over games offered and the governance of the facilities. Those fights have also sunk lottery bills. With Republicans divided over gambling, lottery advocates have needed Democratic votes. Democrats have been reluctant to give those without guarantees for the dog tracks, major employers in their districts.

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But several Democrats at the public hearing expressed wariness about the bill. Rep. Rolanda Hollis, D-Birmingham, who abstained from the vote, said she wanted stronger language on enforcement and inclusion of Black Alabamians in ownership groups.

The most sustained objections came from representatives of Greene County, which has several bingo parlors besides GreeneTrack which fund local governments there. Former Gov. Jim Folsom Jr., speaking on behalf of the operators, said their exclusion would cripple the county.

"They are forced to oppose the aspect of the bill in SB 319 that pretty much gives them a death sentence after two years of passage," he said. "Greene County's whole economicstructure is threatened under this proposal."

Charlie McAlpine, the mayor of Forkville, a town in Greene County, said the bingo revenues give his town the ability to draw down federal grants that pay for services like recreation and law enforcement.

"There are no substitutes in Greene County for the facilitieswe have," he said. "Its unique. Ive worked on development all over this world and I have never seen a situation like we have in Greene County."

Lowndes County officials like Lawrence also wanted White Hall included in the bill, saying it was critical to their operations.

"Stop putting the dirt on top of Lowndes County," said Gordonville Mayor Orbuty Ozier."Peel away the dirt. Give us the opportunity to continue to grow."

If approved by the Legislature, the amendment would go to voters in the November 2022 election.

Contact Montgomery Advertiser reporter Brian Lyman at 334-240-0185 or blyman@gannett.com.

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Alabama lottery and gambling bill ready for vote in House of Representatives - Montgomery Advertiser

When it comes to expanding health care services for rural and poor people in Alabama, the Legislature is rolling the dice on gambling.

With few days left in the legislative session, the GOP-controlled Legislatures answer to a possible health care expansion is wrapped into a legislative proposal to earmark new gambling revenues for the provision of health care services, including rural health care services. Lawmakers are set to debate and possibly vote on a historic gambling package by Thursday.

But any effort to fund a Medicaid expansion is on hold for the time being. An expansion plan was missing in the states $2.5 billion General Fund budget that is effective for the fiscal year starting on October 1 and was adopted by the Alabama Senate on Thursday.

My personal position is when we have an answer on how to fund it, thats when well talk about it, said State Sen. Greg Albritton, R-Atmore, chairman of the Senate budget committee on Thursday. If you talk to the feds, it doesnt cost us anything. But they are not looking at what we need to pay. They have never completely answered how much it will cost the state of Alabama to do it.

Medicaid expansion

Advocates for expanding Medicaid say it could be done with a simple stroke of Alabama Gov. Kay Iveys pen, but the governor has been hesitant to do so since she took office in 2017. Iveys office says its up to the Legislature to agree upon a way to fully fund the expansion, which could affect up to 300,000 Alabamians. The costs to do so has varied; a 2019 University of Alabama at Birmingham study estimated it would be around $250 million per year.

Its also unknown how the $2 trillion American Rescue Plan Act, signed into law in March, could lower Alabamas obligation over time. New financial incentives were included within the coronavirus relief package for the states that have opted against Medicaid expansion. The incentives would provide a 5 percentage point increase on the federal match to cover the people already enrolled in Medicaid in Alabama as long as the state commits to expanding the program.

Alabama is one of 12 states that have not expanded Medicaid eligibility under the Affordable Care Act, the 2010 federal health care law that was a signature policy achievement for former President Barack Obama. Republican leaders have, for years, expressed political opposition to the program and concerns about its costs to state taxpayers.

Ensuring every Alabamian has access to quality health care is important to the governor and always has been a priority of hers, said Gina Maiola, the governors spokeswoman. However, as she has made clear, the problem has always been how to pay for it. She is open to the discussion, but right now, we simply do not have all the facts. This is a massive package, and our Finance Department and Medicaid Agency will need to thoroughly review it before we can fully weigh in on the issue.

State Rep. Barbara Drummond, D-Mobile, provides an update on Alabama House Democratic initiatives during a news conference on Wednesday, April 28, 2021, at the State House in Montgomery, Ala. Standing to her left is Rep.Jeremy Gray, D-Opelika, and Rep. Dexter Grimsley, D-Newville. (John Sharp/jsharp@al.com).

Democratic lawmakers have repeatedly called on their Republican colleagues to expand Medicaid, citing the American Rescue Plan Act as a rare opportunity for the state to reconsider its opposition.

State Rep. Barbara Drummond, D-Mobile, said the failure to expand the program is costing lives in addition to gaudy economic opportunity projections. An Alabama Hospital Association study says that expanding Medicaid to include over 300,000 new recipients would bring between $2.7 billion to $2.9 billion of annual economic activity into the state.

Medicaid expansion would provide insurance coverage to people making up to 138 percent of the federal poverty limit.

Its the right thing to do and we should do it right now, said Drummond.

Robyn Hyden, executive director with Alabama Arise a Montgomery-based non-profit agency that supports anti-poverty policies said while the finances are complicated, she believes there is enough information for lawmakers to support the latest Medicaid expansion request. She said Alabama could save over $700 million over the next two years by accepting the deal offered in the coronavirus relief package.

It yields a tremendous benefit in state savings and all of the immediate economic development impacts (that will help pay) for doctors and nurses, said Hyden. We think the math has never been better.

Gambling uncertainty

She said what is less known is whether gambling is a stable bet for boosting financial support for health care. Lawmakers are set to debate that various parts of the wide-ranging and ever-changing gambling and lottery package during committee hearings on Tuesday. The main aspects of the package include authorizing a lottery, six new casinos, and sports betting and an encouragement for negotiations on a compact with the Poarch Band of Creek Indians.

Even if lawmakers support a gambling provision, it will have to go to the voters for final approval. The last time voters got to decide on a lottery plan was in 1999, when they defeated a ballot initiative by 8 percentage points.

Im not sure what will happen with gaming and the lottery, said Hyden. If it passes the Legislature, it takes a constitutional amendment and a statewide (referendum). But Arise will continue to lobby the governor (for the Medicaid expansion). The best thing we could do for our health care infrastructure, including rural health care, is expand Medicaid as much as possible.

Danne Howard, executive vice president of the Alabama Hospital Association, said her organization is pleased that Alabama lawmakers are including a provision to fund rural health care within gambling legislation. SB310, which was approved out of the Alabama Senate last month, dedicates 25% of net gaming revenue toward rural health. Gambling legislation also includes significant money to fund broadband and mental health services in Alabama.

Substitute legislation, released on Monday, increases the percentage of gambling revenues to health care to 40%. The latest version does not specify an amount to rural health care or rural hospitals.

With state lawmakers negotiating a final version of the gambling package, Howard said she is unsure what it might ultimately mean for the rural hospitals.

We are please they are dedicating some money for the provision of health care services, said Howard, quoting the verbiage contained in SB310. I can tell you that I dont know what is meant by that. But we are happy health care and the provision of those services (are included).

Alabama State Senator Greg Albritton takes questions from the media on Thursday, April 29, 2021, at the State House in Montgomery, Ala. (John Sharp/jsharp@al.com).

Albritton said the gambling legislation appears to be the only path forward for immediate health care expansion and addressing rural health deficiencies.

Thats the only source we are going to have that is available to get the resources to deal with what we need to deal with, he said.

Rural hospitals continue to be a concern for Alabama where seven have shut down since 2010. The percentage of rural hospitals operating in the red increased from 39 to 47 percent in the past five years leading up to the COVID-19 pandemic, which has only heightened the need for more doctors and nurses in small towns.

The Chartist Group, a healthcare analytics company, published research last year that indicated that 12 out of 45 rural hospitals in Alabama are most vulnerable to closure due to several factors that includes the lack of Medicaid expansion.

Said Drummond, I think COVID has taken our skeletons and threw them out of the closet. It showed where our deficits are in health care. I think Republicans see the need and urgency as well. If we dont fix health care, not only is there an economic disadvantage to do so but it will spiral in these other areas of education and jobs.

This story was updated at 1:39 p.m. on May 4, 2021, to clarify how Medicaid expansion will work under the American Rescue Plan Act signed into law in March.

Continued here:

Gambling in, Medicaid expansion out, with Alabamas latest rural health care approach - AL.com

Could access to sports gambling in Arizona lead to increased addiction? Thats the concern by some now that Gov. Doug Ducey has signed a bill that allows a significant expansion of gambling, including sports betting. (Photo by Ethan Miller/Getty Images)

PHOENIX The ability to attend a sporting event, place a bet on a team and possibly return home a winner will soon be a reality in Arizona.

So, too, could an uptick in gambling addiction, some worry.

Excitement surrounded Gov. Doug Duceys decision to sign a bill on April 15 that allows a significant expansion of gambling, including sports betting under licenses issued to tribes and professional sports teams. Gambling on fantasy sports and Keno games at horse race tracks will also be permitted.

But will accessibility increase detrimental behavior?

Each state needs to take some responsibility and understand that a lot of people dont gamble socially or dont gamble like a normal person, said a recovering gambling addict from Arizona who chose to remain anonymous.

Nearly 2.6% of the U.S. population, almost 10 million people, have an addiction problem because of gambling, according to the North American Foundation for Gambling Addiction Help. In WalletHubs recent survey of most gambling addicted states, Arizona ranked 41st, a number possibly impacted by the states newness to expanded gambling opportunities.

I know its a revenue-making function for the state but if theyre going to have places where you physically go and gamble like sportsbooks, they need to put right on the front door and visible that if you have a gambling problem, you need to call 1-800, the recovering addict said, because this is just going to open up a whole new can of worms for people, especially in todays world with so many different stressors, so many different pressures on people whether economic, social, marriages, everything.

Arizona does have a support system for gambling addicts and will further increase its efforts to help combat problem gambling in the state, said Max Hartgraves, the public information officer for the Arizona Department of Gaming

When Ducey displayed historic House Bill 2772 on April 15, he had members of several tribes seating by him. (Photo by Alina Nelson/Cronkite News)

The ADGs Division of Problem Gambling (DPG) partners with individuals, agencies and community groups to promote education and prevention of problem gambling. The DPG also subsidizes treatment for anyone with a gambling problem and has a self-exclusion list that allows people to ban themselves from certain gaming facilities. The list prevents these people from collecting winnings or recovering losses.

In this newly passed legislation, operators of event wagering and daily fantasy sports are required to develop a procedure to inform participants who have a problem with gambling that help is available, Hartgraves said via email. Operators are also required to allow problem gamblers to voluntarily exclude themselves from these games statewide.

Additionally, operators are prohibited from paying out any prize or award to a person on this self-exclusion list, and any prize or award won by such a person shall be forfeited and donated to ADGs Division of Problem Gambling. Lastly, operators are required to develop and maintain a program to mitigate and curtail compulsive play by promoting responsible gambling measures. We will encourage operators to utilize the professionals and services already in place through DPG to meet this requirement.

The passage of the Arizona legislation was tied to an updated gaming compact Ducey struck with tribes and is expected to generate significant revenue. In Colorado, in its inaugural year of legalized sports gambling, sportsbooks took in over $300 million in wagers in March.

The new Arizona agreement would provide tribes with 10 licenses and allow them to run sportsbooks at tribal casinos. Online gambling sites can also benefit from the deal and already DraftKings announced a partnership with the PGA Tour which will include a sportsbook at the TPC Scottsdale, home of the Waste Management Phoenix Open. The Phoenix Suns and FanDuel also have announced a similar deal.

The licenses could bring in at least $100 million in revenue for the general fund, said state representative Jeff Weninger, R-Chandler.

I truly think its going to help drive conferences here, Wenninger said. When youre going down the checklist of us versus someone else and all the beautiful and great attributes we already have and then you add that element to it, I think it will fuel that. And then I think it really fuels the mega events. The day before the signing of the bill, you already had PGA announcing that they were going to have a sportsbook built at the Phoenix Open the year of the Super Bowl.

The recovering gambling addict understands the revenue stream House Bill 2772 brings to Arizona but believes gambling venues at sports events would be extremely harmful. And I would have zero interest. I wouldnt go to a game because the last thing I need to do is go and enjoy a baseball game and also pass a sportsbook or be active at my seat betting on games. I dont need any of that. Thats all detrimental to my health, detrimental to a gambling addict.

Weninger does not believe sportsbooks in stadiums would be a major trigger because he does not think they would be in your face such as a 50/50 raffle ticket sale.

If youve ever been there and they have those raffles going on and theres like 10 people standing in the hallways saying, Hey, you want to get on the raffle, he said. I dont think its going to be anything like that. And I understand and sympathize with the plight but at the same time, they sell alcohol at games and you could have somebody whos been fighting addiction on alcohol. And youre going to run into those situations in everything under the sun.

As more states legalize sports betting, it is becoming more normalized. ESPN recently did a sports betting-themed alternate feed for an NBA telecast and ESPN News constantly runs betting lines concurrent with its programming.

Rick Benson, founder of the Algamus Gambling Recovery Center in Prescott, said if ESPN and other major sports networks continue to air gambling-related content, they need to also provide support for the fight against problem gambling.

To be using the National Council on Problem Gambling hotline number I think would certainly be a good idea, Benson said. There is a national council hotline number. It then tracks into any given state in the country based on the area code that the call came in from.

As sports gambling nears its arrival in Arizona, attention on the decision is coming from a variety of places.

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Will the accessibility to sports gambling in Arizona increase addiction? - Cronkite News