Toward the end of her 2020 State of the State address, Gov. Kay Ivey snatched the issue of a state lottery and gaming from the hands of the Legislature.
“I will be signing an Executive Order to establish a small working group of some of Alabama’s most distinguished citizens, to begin working, to gather all the facts on how much money we could really gain if some form of gaming expansion occurred,” said Ivey.
Not only did Ivey take ownership of the gaming debate, she asked the Legislature to stand down.
“My challenge to the Legislature is: give us some time to get the facts and then, together, we will give the people of Alabama the information they need to make the most informed decision possible,” said Ivey. “Once they have done so — I will bring these facts to the 140 members of the Legislature and the people of Alabama. And we will then, once and for all, be in a position to determine whether or not this is a path we want to pursue.”
Not since Gov. Don Siegelman’s failed attempt to bring a lottery to the state in 1999, has any governor dared throw weight behind a lottery bill much less try to untangle the Gordian knot that gaming has become as a result of former Gov. Bob Riley’s bingo wars.
Riley and his compatriots upended years of established law that allowed electronic bingo in Macon, Lowndes and Greene Counties, which resulted in the Poarch Band of Creek Indians gaining a virtual monopoly over gambling in the state. Despite federal rules that prohibit the tribe from operating any games that are illegal in the state, the Poarch Creeks have thrived.
Over the last several months, the Poarch Creeks have engaged in a statewide advertising campaign to promote a billion-dollar payday for the state in exchange for a state-tribal compact and a guaranteed unfettered monopoly over Vegas-style gaming.
Ivey’s announcement has put an end to any hopes of an immediate compact or other gaming legislation for now.
Lottery legislation requires an amendment to the state’s 1901 constitution, which must be approved by a vote of the people. The governor plays no direct part in legislation that involves constitutional amendments. However, any state-tribal compact must be negotiated under the authority of the governor.
For the last several years, the Poarch Creeks have blocked all attempts to pass a lottery and have resisted calls to negotiate in good faith with owners of the state’s dog tracks.
Even as there was hope going into the 2020 session that PCI might come to the table for a comprehensive gaming solution recently, those hopes have been waning because there doesn’t seem to be any indication the tribe is backing down from its demands for an advantage over others players in the market.
There is also apparently no leader in the House and Senate strong enough to bring all sides together in a compromise.
Ivey has shown she is powerful enough to bring disparate groups together for a common solution as she did with the 2019 gas tax.
When it comes to the issue of gaming, the Legislature will most likely follow Ivey’s lead as it would be foolish to buck a governor with her approval and influence.
It is doubtful even the Poarch Creek’s money can stop Ivey.
