By Sondra Washington
Since slot machine-style gambling began taking root in the state, many people have speculated about the amount of money the casinos were bringing in and giving to charity each month. The games were supposed to raise money for this purpose.
A glimpse into Alabama’s big-money gambling profits was revealed when a federal court ruling stated that Shorter’s VictoryLand casino gave less than 1 percent of its $126 million 2007 revenue to charities.
And while the state’s so-called charity electronic bingo facilities hid their earnings and donations from public view, officials with the Poarch Band of Creek Indians say they have to be transparent with the U.S. Department of the Interior about where the money from its three casinos goes.
The Indian Gaming Regulatory Act requires tribes to use net revenues from any tribal gambling “to fund tribal government operations or programs, to provide for the general welfare of the Indian tribe and its members, to promote tribal economic development, to donate to charitable organizations or to help fund operations of local government agencies.”
So that means every year the Poarch Creek Indians have to submit a revenue allocation plan to the Department of the Interior, detailing where the money goes, said Robert McGhee, governmental relations adviser for the tribe.
“[The plan] goes through several boards, (and) we have … audits … to make sure everything is being done properly,” he said.
McGhee said it costs about $20 million to run the tribe’s three branches of government and support its 3,000 members, and the casinos generate most of that money. Gambling money also helps fund the fire department, emergency management operation, senior center and services, social services, health services, recreational facilities, etc.
A Feb. 12 economic impact study performed by Geiger Johns Associates LLC showed the effects of Indian gambling in Alabama. Geiger Johns is an American Indian-owned business research and consulting firm based in New York and Washington, which specializes in American Indian gaming.
According to the study, in 2009, Indian gambling, operated through PCI (Poarch Creek Indian) Gaming, spent nearly $145 million on Alabama goods and services, which included paying nearly $42 million in payroll and generating 1,268 direct jobs and 6,292 indirect jobs through its casinos. That same year, the casinos paid more than $76 million in federal taxes and more than $17 million in state taxes. These taxes are for payroll and goods and services. They are not income taxes.
What is not included in the study — and officials would not comment on — is the amount of money brought in by the casinos and how much profit is made. PCI Gaming did invest more than $200 million into the opening of Wind Creek Casino & Hotel, but there’s no detailed information available about the profits going to the PCI Gaming operation.
Still Todd Stacy, press secretary for Gov. Bob Riley, said the negative impact of gambling is greater than the revenue that might be generated.
“The evidence is irrefutable. Casinos are a drain on local and state economies,” he said, pointing to the economic, social and political prices paid as jobs are lost, crime rates skyrocket and gambling bosses acquire power.
On the tribe’s website, Tribal Chairman Buford Rolin said, “We are proud to be able to contribute to our state by helping provide for education and public safety. We work hard to ensure that Alabamians maintain their quality of life. As the gospel says, ‘To whom much is given, much is expected.’ And we are ever mindful of that when we donate to charitable causes around our state.”
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Regulations for use of Indian gambling revenues
The Poarch Band of Creek Indians shall use the revenues from any tribal gambling operation only for one or more of the following purposes:
- tribal operations or programs,
- the general welfare of the tribe and its members,
- the operation of local governmental agencies,
- charitable organizations and/or
- economic development.
Source: Poarch Creek Tribal Gaming Ordinance, 1993, and IGRA
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