MONTGOMERY, Ala. (WIAT) – Alabama lottery and casino gaming would create $1.2 billion annual economic impact and generate almost $400 million in new revenue for state programs, according to a research study released Monday.
The study, which was conducted by the Institute for Accountability and Government Efficiency at Auburn University Montgomery was conducted on behalf of Alabama Senate Pro Tem Del Marsh.
The largest impact would occur in the cities where facilities currently are, Mobile, Birmingham, Macon and Greene County. If these facilities allowed casino gaming, the study showed that more than 11,000 new jobs would be created for Alabamians.
“Eleven thousand new jobs will positively impact families throughout our state,” Marsh said.
The economic impact of those four facilities alone is estimated to be $800 million annually.
“This is an extraordinary finding by the AUM group and clearly finds that casino gaming and a lottery would have a major economic impact on Alabama,” Marsh said. “These two ideas will generate hundreds of millions of new dollars for state programs at a time when essential government services may be cut.”
The study predictions showed that an Alabama lottery will generate #332 million annual for state programs. Casino gaming, which would allow gaming like table games and slot machines would generate an additional $74 million.
The projected casino revenue is based upon proceeds taxed at a combined state and local rate of 15 percent. Based upon a state tax rate of 14 percent, the state’s share would be $64 million.
“At a time when we are talking about either massive budget cuts or higher taxes, this is certainly something we need to take a look at and consider,” Marsh said. “I’m not sure there are any ideas out there that can create 11,000 new jobs while generating that kind of revenue for state government.”
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