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API on Gambling Plan: A Hotbed of Corruption

A message from the Alabama Policy Institute

 

API raised some eyebrows last week by saying that the gambling bills had corruption written directly into the legislation. We stand by that assertion. Here are just a few of the ways that government corruption is literally written into the fabric of the bills: 

The Lottery Corporation is solely appointed by the Governor and the corporation is exempt from state bidding laws. There is conflict of interest language for the members of the lottery corporation, but only if the conflict is for over $1 million; personal graft up to $999,999 is allowed. The paid president of the commission is elected by other appointed commission members; they may hire as many employees and spend as much money as they desire. However, none of those employees or lottery corporation members appear to be subject to ethics laws. The corporation would have no accountability to any other entity or any ongoing oversight. So, in sum, the unelected and unaccountable corporation will have full reign to do whatever they want whenever they want without repercussion. 

Similarly, the unelected Alabama Gaming Commission would have no accountability to any other entity or any ongoing oversight. In fact, proposed commissioners would be appointed in July 2024 and their first meeting is slated for October 2024, a month before the supposedly all-important November vote of the people. 

Commission employees cannot lobby the commission for two years after resignation, but the Executive Director and commissioners are free to lobby immediately upon departure. Commissioners can also work for a gambling operation during or immediately after their time at the agency. The commission cannot be sued for their decision-making regarding issuing gambling licenses, transferring ownership, or transferring licenses. They are only accountable to themselves and there is no recourse. The fox isn’t guarding the hen house. The fox owns the hen house. 

Close family members and business associates of legislators can be appointed as a commissioner or employed by the Alabama Gaming Commission, Gaming Enforcement Division, and Alabama Lottery Corporation. Legislators and other elected officials can have unlimited personal and/or business interests in gambling operations, the Alabama Gaming Commission, Gaming Enforcement Division, and Alabama Lottery Corporation. There is no restriction in the bills regarding legislators or any elected official receiving complimentary services, meals, rooms, gifts, cash, coins, tokens, or other items at the casinos they voted to legalize. 

Proponents of legalizing and expanding gambling claim that they will “produce” up to $1.2 billion for the state coffers annually. If you are willing to ignore the mountains of negative societal impacts and fact that (mostly predatory) gambling would have to take over $3.2 billion out of Alabama citizen’s pockets in the form of personal losses to create that amount of money, you might wonder where those huge stacks of cash are going. There’s a long list of possibilities to entice supporters but at the beginning of that list are the magical words, “including but not limited to”, which means that whatever gambling brings to the state in the form of taxation will be completely up to the legislature to spend on whatever they want to every single year. Some people would call that a legislative slush fund. Education? Maybe, but not college scholarships like Georgia. Roads and bridges? Maybe, but aren’t we paying a never-ending gas tax for that already? Helping problem gamblers? Nah. Medicaid expansion without having to vote for it? Absolutely. Pet projects for legislators? Yep. Extra pork for the districts of strong supporters and legislative yes men? You betcha. Perhaps that’s why these bills seem to be an offer that many legislators are finding hard to refuse. 

 

This is a paid advertisement from the Alabama Policy Institute. 

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