Benefits Outweigh Risks As Legal Gambling Up For Discussion In AL
- Alabama is considering the legalization of various gaming markets after a recent study found how lucrative these industries could be for the state.
- The Heart of Dixie has researched the effects that casino gaming, sports betting, and a state lottery would have on Alabama.
- Outside of problem gambling being an issue, close to one billion dollars combined could be made from these markets.
MONTGOMERY, Ala. – The Gubernatorial Committee of Alabama publicized a report on Friday that documents the extreme benefits that legalizing gambling in the state would bring to the economy.
Per report findings, Alabama has the potential to gain $700 million in annual revenue from a legal gambling industry as well as add 19,000 jobs to the workforce due to the need of employees that the new market would require.
This is not the first look into legal gambling in the Heart of Dixie this year as Governor Kay Ivey put together the Study Group on Gambling to research both the risks and benefits of introducing the industry to the state in early 2020.
The statistics acquired by the group did not speak on the positives of the market but reiterated the potential problems it could cause Alabama residents.
As with any gaming industry, states often worry about the risks of addictive and problem gambling that could occur should residents have legal outlets available to them.
However, at the same time, part of the estimated $700 million that could be made would be earmarked for free help and programs to any citizen harmed bylegal gambling in Alabama.
“It is important to note, that while there are costs associated with gambling, the taxation of regulated gambling activities creates an opportunity to dedicate public funds to gambling treatment, prevention, or education services,” the report stated.
What’s Being Said
Alabama remains one of only a handful of states in the nation that does not have a state lottery. Amendments to the Constitution would be needed as gambling is prohibited. All Tribal casinos required amendments in order for them to open their doors to gamblers in the state and even that resulted in a shortlist of options for patrons to wager on.
“Gambling will work in the state of Alabama, and we feel the advantage outweigh the disadvantages in that endeavor,” said Todd Strange, the former Mayor of Montgomery. “There is $600 to $700 million that start and stabilizes growth. There are new jobs created that are twice what the per capita income is on an annual basis.”
Report findings were in-depth with 876 pages worth of data, all of which pointed to the pros outweighing the cons in terms of legalization. It went over various areas of gambling and how much each of those areas could bring in.
A lottery could make between $200-$300 million annually in revenue while the five to seven casinos in Alabama could be contributing combined revenue of $300-$400 a year. Adding a sports betting market to the mix and has shown about $10 million being made in revenue each year.
Altogether that could exceed $700 million that would go into the state coffers.
Will Alabama See Legal Gambling?
It will be hard to sway the very conservative state of Alabama when the session rolls around in early 2021 for discussions. Democrats in the House have continued to push for legal gambling expansions for years without success.
Now, with the need for money from the hits caused by the outbreak of COVID-19 and this very detailed report, traction may be seen in legalizing gaming industries in Alabama.
If nothing else, the topic of legal gambling will be given a fair amount of consideration. However, in the end, Governor Kay Ivey will have the final say.
“I continue to maintain the final say on gambling belongs to the people of our great state, and if and when I have a recommendation regarding a specific course of action, I will do so in full transparency to the people of Alabama, working hand-in-hand with the Alabama Legislature,” said Ivey.