Posted by HB507, a proposed constutional amendment to regulate and tax bingo has been introduced by Reps. Black and Knight.
At first read, it appears to have something to offer all the major operators. While it limits sites (to discourage “predatory competition”), it also states local amendments can be sought to add new sites. Taxation is set at 20% of the gross divided 65/35 between schools and medicaid, plus 5% percent more to be divvied by population among non bingo counties. Country Crossing will pay a reduced rate for the first five years.
A link to the bill and here is a link to it in pdf format at ALISON.
Update: 2/5/10, thanks to the Dothan Eagle for the steer.In the Senate, Roger Bedford has introduced SB380 which appears a clone of HB507 and Marc Keahey has introduced SB381. Keahye’s bill does not have the civil and criminal immunity for past conduct contained in either SB380 or HB507, proposes a different tax schedule and spilts the proceeds 80/20, education and medicaid. (Maybe some day some one can explain why education is more worthy than medical care, but I digress.). Seems reasonable to expect Keahey’s bill to fail.
For what is worth, last year the Legislative Fiscal Office provided this assessment on HB676 last session.
HB676 for Tourism and Travel – Dated 03/11/2009
Committee: Tourism and Travel Sponsor: Black Analyst: Kelly Butler Date: 03/11/2009
FISCAL NOTE
House Bill 676 as amended by the Committee on Tourism and Travel proposes a constitutional amendment that, if ratified, would authorize bingo for profit and would levy a state tax on bingo conducted at up to 10 locations in the state. The state tax would generally be equal to 20% of the gross revenues from bingo games (the total amount wagered less the total winnings paid out). The state tax on bingo in Macon County, Greene County, and Houston County would be equal to 10% of gross revenues for the first five years following ratification of the amendment. Assuming that a total of 15,000 machines are installed statewide, and further assuming that the average gross revenue per machine would be $150 per day, the state tax could generate an estimated $115,000,000 annually for the first five years following ratification of the amendment and an estimated $164,000,000 annually each year thereafter. The tax proceeds would be distributed as follows:
Recipient First five years following ratification Thereafter Department of Revenue $1,150,000 $1,640,000 Education Trust Fund $79,695,000 $113,652,000 State General Fund – for Medicaid $34,155,000 $48,708,000 Total $115,000,000 $164,000,000 The amendment allows counties to levy an annual license fee of up to $500 per machine, except for machines located at racetracks, which could generate an estimated $2,500,000 annually for county governments. The amendment levies a $500 per machine fee on machines located at racetracks, which could generate an estimated $5,000,000 annually for the local racing commission’s expenses and for local recipients of pari-mutuel tax proceeds.
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This bill is DOA. As more voters learn how the machines work…then all credibility will be lost.
Interesting article in the Dothan paper today about the financial arrangements at Country Crossing. As I recall there has been much ado about all of the proceeds of bingo going to charity. Well according to the Dothan paper Country Crossing gets between 55 & 65% of the proceeds from each bingo machine. This is estimated to be in excess of $20,000,000.00 per year.
i laugh when they constantly call it “charitable bingo” It ’s a freakin’ slot machine. Fine by me if we have them but as of now – they are illegal. If we vote – and I hope we do so we can settle this (hopefully) – the bill needs to be fair and not be written by mcgregor and his cronies to protect their interests. At least this bill says it taxes the gross – I think some of the Country Crossing language only deals with the net. Hell, you can play accounting games all day and hardly show any net proceeds after your fees, expenses, etc are paid. I am glad some questions are being asked about the details at Country Crossing – i think there is a lot they do not want the light of day to be lit on.
Must be a good bill. It only took 14 lines on the second page to get to the kickback to AEA.
256-850-4250 is calling people with a push poll about electronic bingo. Not sure if its AEA, Anazlone, or one of the Repub groups.
Anyone have any insight?
The last thing we need to create in this state are monopolies for gambling bosses who have been in violation of the law. The voters deserve a chance to decide on this issue without the creation of these monopolies.
Establish a maximum number of machines allowed statewide. Limit each Congressional District to a fixed amount. Require companies to bid on medallions for each machine good for 5 years. At the expiration of the medallions, bid them all out again. Proceeds from the bids on the medallions is deposited in a trust fund with the interest to be used by the Alabama Department of Human Resources to help the fools who are destroyed by gambling, to law enforcement for the expected increase in crime resulting from the establishment of the gambling halls and to the gaming commission to enforce the law. Prohibit any person or company from owning more than one establishment and cap the maximum number of medallion authorized machines at each location to 500. Require each county to conduct a separate vote on whether or not to allow medallion authorized machines in their county. Create a state gaming commission to oversee the public auction of the medallions, licensing the establishments, auditing of the establishments and enforcement of rules and regulations needed for controlling the gaming industry. Repeal authorization for all local gaming commissions or similar bodies. Set a state and local tax on the gross proceeds from the machines. Require the state gaming commission to do a body cavity background check on any persons or companies bidding on the medallions with absolute prohibition for any one with any felony conviction. Prohibit persons or companies holding medallions from making any contributions to any public official or PACs. Require any non gambling operations co-located on site (like hotels and restaurants) with the medallion authorized machines be totally seperate businessses enterprises with only a contractual relationship with the holders of the medallions.
That will do for starts.
Gilley, McGregor and Greentrack will only have to pay 10%!? And any other casino will have to pay only 20%? Wow, gee thanks, you oh so “generous” casino operators. You really are doing your best to line your pockets and pay as little as possible to the state. You guys can’t even write a bill that sounds legit.
Anon, I think you’re using last years numbers, this time around it’s 20% for everyone but Country Crossing which for five years pays 7.5%
Old Prosecutor, the numbers are interesting, doing well does pay well. Hopefully, the bills proponents will provide some numbers. In that regard, here’s a link to the 2008 IRS-990 filed by Cornerstone Community Outreach DBA White Hall Gaming Center, courtesy of the Foundation Center.
If gaming is the great economic engine its cracked up to be why is greene countyy 92 million in the bucket? Its amazing how in the midst of a budget crisis the legislature can’t wait to forgive the debt.
Have you actually read keahey’s bill? Higher tax rate, taxes on third party vendors, fewer sites, and all sites meet the same criteria, no carve-outs. Why should this bill fail and the other succeed?
FJ, the reasons you give for the bill would sting non-Indian operators, who have a bit of clout with our Legislature. I’ll also add lack of civil and criminal immunity for past behavior. Look at which bill is scheduled for hearing by the Tourism Committee tomorrow and which one is not for another indication.
Can someone tell me if Hari Anne Smith will definately be running? I thought the Republican committee had to decide. When is the deadline for announcing? Thank you in advance for your answer.
[...] had a good post the other day about the newly introduced “Sweet Home Alabama” bingo bill for this legislative session [...]
I don’t see the big deal…bingo is another way to help the economy of the counties….be it great or small…at least the people would have real jobs (not placed in the Ala. Unemployment system as Riley suggests, really???) It does not change the crime element – I’ve seen the “good” that come of this – - look at MS. I refer to Tunica county. People who really don’t know about the fun that come from playing these machines, should not be able to dictate to us what we can and cannot do with our money!!
I don’t see what the big deal is either. Heaven knows we could use the jobs and maybe even get a few people off of welfare. Alabamians are taking their money to Georgia, Mississippi, Tennessee, South Carolina, and Kentucky. Why not let them spend it here. They don’t just gamble when they go. They shop, eat, and relax. We have great shops, wonderful restaurants, and some really nice hotels. Alabama “could” be a great tourist attraction!