A constitutional amendment introduced last week in Alabama by State Senator Hank Erwin, Jr. could shut out games of chance from the Southern state. Senate Bill 470 was referred to the Tourism and Marketing Subcommittee. Erwin represents the 14th District of Alabama.
The bill decrees, “The legislature shall have no power to authorize any gambling activity, including, but not limited to, lotteries, or gift enterprises, or any other games of chance, including, but not limited to, pari-mutuel wagering for any purposes, and such activity shall be illegal.” The operative word in the legislation appears to be “chance,” which Senate Bill 470 defines as “(a) It is played or engaged in for consideration or by staking or risking money or some other thing of value. (b) It is played or engaged in for the purpose of obtaining money or other thing of value or results in the distribution of money or other thing of value. (c) The outcome, measured by a single play or over multiple plays, is determined in material degree by chance, notwithstanding that the outcome is also determined in equal or greater degree by other factors.”
Recent court cases orchestrated by the Poker Players Alliance (PPA) in Colorado, South Carolina, and Pennsylvania have overwhelmingly demonstrated that poker is a game of skill. In the most recent case, which occurred in South Carolina, Judge Larry Duffy concluded, “Texas Hold’em is a game of skill. The evidence and studies are overwhelming that this is so.” The PPA brought in World Poker Tour Host and Poker News Daily Columnist Mike Sexton to testify. In his time on the stand, Sexton showed clips of past tournament hands, explaining how the process of betting and bluffing resulted in hands being won or lost. University of Denver Professor Robert Hannum explained the mathematical aspects of the game. Although poker was found to be a game of skill in the end, the five defendants were still found guilty according to state law and have since appealed.
Erwin’s bill specifically excludes business transactions, stock and commodity sales, and insurance from its jurisdiction. In addition, licensed Bingo games will only be able to be held by a “religious, charitable, educational, fraternal, or benevolent nonprofit organization which qualifies as an exempt organization under Section 501(c) of the Internal Revenue Code.” There are a bevy of restrictions on who can operate Bingo games and sweepstakes under the new Senate Bill. They include that the game’s managers are not engaged in any gambling businesses, payouts do not exceed 1% of the beneficiary’s gross receipts, and the revenues from the contest represent more than 1% of its annual expenses.
In order for a constitutional amendment to be enacted in Alabama, it must be approved by three-fifths of the members of the House of Representatives and Senate. It then is voted on by the general public, where it must obtain a majority in order to become law. Erwin represents the 14th District, which includes Bibb, Chilton, Jefferson, and Shelby counties. He is in the midst of his second term in office and is the son of a Congressional Medal of Honor winner. He makes his home in Montevallo, Alabama.
Erwin’s amendment alters the text of Section 65 of the Alabama Constitution, which states that lawmakers “shall have no power to authorize lotteries or gift enterprises for any purposes, and shall pass laws to prohibit the sale in this state of lottery or gift enterprise tickets.” Erwin’s Senate Bill adds a provision that would call for a statewide vote for future constitutional amendments to authorize any form of gambling.
Court cases at the state level have hinged on the definitions of “skill” and “chance” according to local laws. Whether poker could fall outside the realm of “chance” in Alabama is not known. In Kentucky, it was found that the state’s Governor, Steve Beshear, did not have jurisdiction to seize 141 internet gambling domain names because they were not “gambling devices” under state law. The two to one ruling by the state’s Court of Appeals was handed down in January. The case may soon move on to the Kentucky Supreme Court.
Erwin was not due back in his office until Tuesday, according to his secretary.
