Following the Midterms, Alabama may now be faced with one of the most conservative governments the State has ever seen. As a result, the gambling industry in Alabama may have just found itself a fierce enemy.
Following the Midterms, A Disaster for Gambling
On Tuesday, the Mid-term elections for the House took place across the Untied States. Voters flocked to the ballot boxes and shifted the balance of powers in Washington with the Democrats soaring back to the top.
Amid the general political flurry of excitement, though, some important things transpired. In Florida, for example, a piece of legislation known as Amendment 3 passed earlier this week, effectively narrowing down the scope of operation of race tracks and ordering them to shut down.
It also affected any new or existing gambling business that would want to expand. In order to scale their businesses, operators will now have to garner statewide support and hold a referendum – something that in itself would cost millions to even initiate, let alone finish in a way that the company would want.
However, Alabama has taken things to the next level, consolidating the clout of the Grand Old Party (GOP) and taking an aim at taxation and other specific issues, such as lottery and gambling. In the wake of the victory, Jonathan Gray, a Republican campaign strategist, has said that the Republicans are going to look into existing gambling laws, trying to give more power back to voters.
You’re absolutely going to see something done on gambling, whether it’s a compact with the Poarch Band of Creek Indians, a constitutional amendment for lottery or, quite frankly, they may have to deal with sports wagering
Gambling can also be divisive on another level. Some Republicans object to the activity from purely moral reasons whereas Democrats are more open to the idea but insist that any revenue thereafter should go directly to education and other public causes.
This has been quite a popular strategy elsewhere in the world as well, including Switzerland where the pension system is backed by gambling, and now Brazil is on the cusp of passing its own legislation couched in the same terms, i.e. if there should be a gambling industry, it should contribute heavily to public causes.
Facing Opposition
The gambling industry is going to come under a lot of fire by the Alabama Citizen’s Action Program (ALCAP), which is a local lobbying group that has significant influence in the state. One of the main anti-gambling sentiments has been that lottery harms the state rather than contribute, because people purchase fewer goods or services as a result, an ALCAP representative explained.
Lawmakers could now possibly seek to impose stricter measures on lotteries and the industry in its entirety to prevent the ALCAP suggested leaking of revenue. One popular argument has been the fact that people often spend time driving to lotteries right after work, which ultimately damages the economy.
Though the proponents of the argument conceded that it still had to be proven, it was nonetheless true, with people wasting valuable time and money, boosting the revenue of the “gambling people,” concluded ALCAP executive director Joe Godfrey.
