Editorial: Poarch Creek regulation bill a better option

Thursday, February 11, 2010  

"Those who want a gambling bill to not only clear the Legislature, but also to win voters' approval, would be wise to consider some of the selling points of legislation being pushed by the Poarch Band of Creek Indians.

Although comparable in a number of ways to the "Sweet Home Alabama" gambling legislation (see editorial above), the Poarch Creek proposal offers a few significant improvements.

-- It, too, would legalize electronic bingo at state dog tracks in Greene, Jefferson, Macon and Mobile counties as well as to two existing establishments, one in Lowndes and the other in Houston County. But it would limit the total number to eight statewide, with the remaining two sites to be picked by the new state gambling commission.

-- That's two fewer sites than the automatic number in the Sweet Home Alabama bill. But it's way fewer than what could be established if other counties have the option of getting their own constitutional amendment for electronic bingo, as they could under Sweet Home Alabama.

-- All sites would pay a 28 percent tax on gambling revenues after winnings are paid, with 20 percent going to the state government and 8 percent going to local governments. With Sweet Home, the tax is 25 percent (20 percent state, 5 percent local) -- but Country Crossing in Houston County is favored with a special 7.5 percent state tax rate for the first five years.

-- In addition, vendors supplying goods or services for bingo games would pay a 20 percent tax on gross revenues, too. Sweet Home Alabama doesn't impose a tax on vendors. This is a significant difference because, in many cases, companies that lease bingo machines to Alabama gambling establishments have been paid substantial sums.

-- Like Sweet Home, the Poarch Creeks' bill would require gambling sites to make at least a $100 million investment, with at least $50 million of the sum in nongambling areas. But Sweet Home excuses Lowndes County from that requirement, and requires only a $50 million investment in Greene County. The Poarch Creeks' proposal would make the rule apply equally."

Get the Story:
OUR VIEW: Alabama legislators should give serious consideration to a second gambling proposal, this one pushed by the Poarch Creeks (The Birmingham News 2/11)
OUR VIEW: If Alabama legislators want to resolve the debate over gambling, they need to give voters a good proposal to consider (The Birmingham News 2/11)

Earlier Story:
Robert McGhee: Poarch Creeks for bingo regulation (2/10)