Christian Taylor Policy Analyst | Alabama Policy Institute
Christian Taylor Policy Analyst | Alabama Policy Institute
Last week, the Alabama House of Representatives voted to reject the Senate's amendments to HB 151 and HB 152, leading to the creation of a conference committee composed of Representatives Whitt, Jones, and Blackshear. The Senate has yet to respond legislatively to this action by the House.
The issue of statewide legalization and expansion of gambling has created significant division among lawmakers. The debate centers around different types of gambling, governance systems, and revenue distribution. While the House passed a broad gambling expansion proposal, the Senate did not agree.
The House now insists that the Senate reconsider its original plan to restrict gambling by permitting unlimited sports betting licenses and legalizing full Vegas-style casinos across the state. Additionally, House members are calling for specific funding for Medicaid expansion and other projects and want these measures on the ballot in November.
Despite these demands, there is a notable focus on ensuring that lottery revenue is allocated to education. However, there has been no discussion about implementing a Georgia Hope Scholarship-like program for four-year college students—a point expected by many Alabama parents and grandparents who support voting on a lottery.
The enabling legislation from the House included potential use of gambling proceeds for educational purposes but was not guaranteed or emphasized in public discussions. The Senate's version divided revenues into thirds: one-third each for Infrastructure, General Fund, and Education Trust Fund with priorities set annually by legislators.
Both bills estimated annual losses of $350 million by Alabamians on lottery tickets. Eighteen states have "last dollar scholarship" programs; however, their scale varies significantly from what Alabama proposed. Arkansas allocates approximately $3 million per year limited to 100 students; Kentucky distributed $12.4 million in 2021; Tennessee's larger program covers 14,000 students but extends beyond technical schools unlike Alabama's proposal.
According to Stephanie Holden Smith from Alabama Policy Institute: "Don’t be fooled by rhetoric... These gambling proposals were written for those who profit from others' losses—not Alabama’s children."
Smith also warns against relying on an "education lottery" initiative as it might not benefit students seeking four-year college degrees as suggested through campaign rhetoric associated with this proposal.