Over the past month or so, there has been an unusually high volume of talk about the Alabama Education Trust Fund.
This is very strange.
Such talk usually doesn’t happen until a few weeks before we have to cut teacher pay, implement mass layoffs, freeze hiring, or ask parents to bring in more paper towels and toilet paper. So, the fact that we’re sitting down to talk about the “potential” shortage that may be on the horizon is a refreshing change.
Of course, we’re only talking about this in the context of allowing our lawmakers to eliminate the tax break for working people so they can move forward with the tax break for the rich, so it’s not all sunshine and rainbows. But still, it opens the door to a serious financing issue that is sure to come.
And it allows me to talk about the only real solution:
Gambling.
As we sit talking about the overtime tax credit that is costing the state $300 million or so (it doesn’t actually “cost us” anything, by the way), and the school voucher program that will cost the state half a billion dollars. Annually and more tax breaks being taken away from the ETF, I would remind you that there is a deal on the table that would raise about $1 billion a year and would cover all of that. And then some.
This is what the comprehensive gambling bill introduced in the last legislative session would have generated – and certainly on the table in the 2025 session. All of this in order to properly tax and regulate gambling.
This bill would have granted seven casino licenses to facilities across the state and also allowed the governor to negotiate an agreement with the Poarch Band of Creek Indians to operate three full casinos. It would have allowed sports betting and created a statewide lottery.
It is estimated that it brings in between $750 million and $1 billion annually.
No incentives. No tax breaks. No flashes.
Additionally, the new Gambling Commission will properly regulate gaming, and will close many of the more than 500 illegal casinos currently operating throughout Alabama. Casinos that are used to launder money for criminal enterprises and support other illegal activities, such as prostitution and illicit drug trafficking.
It will also create between 12,000 and 15,000 permanent jobs. And countless temporary construction jobs.
It would have been the most important jobs bill in state history. – Adding billions of dollars to state coffers through employment taxes, income taxes, and sales taxes.
All of this would cover the expected shortfall in the ETF.
This isn’t just frivolous thinking in the sky, wishful thinking, or a junk hoax either. Job numbers and revenue estimates are supported by comparisons to surrounding states and job numbers for similarly sized casinos in other states. Casinos are currently operating in this state.
For goodness sake, just the other day, following their purchase of Birmingham Raceway, Porch Creek officials said they would consider investing more than half a billion dollars in creating a resort destination in Birmingham if the state passes legislation allowing full casino gaming.
These are the same Poarch Creeks who just spent over half a billion dollars to open a casino south of Chicago.
Such a project would generate a local economic impact in the billions, creating thousands of construction jobs and resulting in millions of dollars in material purchases mostly from Alabama suppliers. All this influence exists within the state.
This is only one site.
Poarch Creeks is set to build another casino in Northeast Alabama under legislation in 2024. The McGregor family was to expand its casino at VictoryLand in Shorter. The facility surrounding Dothan was to be expanded. Facilities were also in Mobile and Greene counties.
We know by looking at the current employment numbers at PCI’s three online bingo casinos that the job outlook is very realistic. At those three casinos alone, which operate only electronic bingo machines, the tribe employs more than 2,000 people in its gaming operations jobs alone.
At its new Chicago location, PCI was looking to hire roughly that number for a casino similar in size to its Atmore location.
However, we treat all of this as if it is not real money. As if the impact of properly taxing and regulating gambling that is mostly here already couldn’t be incredibly beneficial and impactful.
It’s mind boggling. Our lawmakers are going around bemoaning the looming financial crisis and threatening to take a measly 5 percent tax break on overtime wages out of workers’ hands.
And all the while, the best, most consistent answer flashes like a casino light right in front of them.
