03/27/2024 03:15 PM House LABOR & COMMERCE

              HB 200-GAMING; ELECTRONIC PULL-TABS                                                                           
                                                                                                                                
3:50:01 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 200, "An  Act relating to pull-tabs;  relating to                                                               
persons prohibited  from involvement  in gaming; and  relating to                                                               
the duties of the Department  of Revenue."  [Before the committee                                                               
was the  proposed committee substitute  (CS) for HB  200, Version                                                               
33-GH1054\S,  Wallace,  2/8/24,  ("Version S"),  adopted  as  the                                                               
working document on 2/12/24.]                                                                                                   
                                                                                                                                
CHAIR SUMNER noted that HB 200 is by request of the governor.                                                                   
                                                                                                                                
3:50:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to  report CSHB 200,  Version 33-                                                               
GH1054\S,  Wallace,  2/8/24,  out of  committee  with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
3:50:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS objected.   He shared his  concern that the                                                               
widespread  deployment  of  electronic pull-tabs  (E-tabs)  would                                                               
likely reduce money for charities  given the higher recovery rate                                                               
of money by  players and that money would also  flow to an E-tabs                                                               
company.   This would  require a  correspondingly higher  rate of                                                               
gambling, he argued,  to just pull even for charities.   He noted                                                               
that Alaska  currently has a  low rate of gambling  addiction and                                                               
urged  caution   on  introducing  policies  that   will  lead  to                                                               
increased  rates  of  gambling   addiction.    He  recalled  that                                                               
according  to  testimony  a  bill could  be  crafted  that  would                                                               
substantially  increase the  amount of  money going  to charities                                                               
with minimal risk of  substantially increased gambling addiction,                                                               
something he would be  in favor of.  He stated  he will be voting                                                               
no on HB 200.                                                                                                                   
                                                                                                                                
3:52:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER said his  understanding from the testimony                                                               
heard is  that there is  some countervailing increase  in revenue                                                               
to the  charities because  it allows for  more complete  usage of                                                               
the chances  and because  the machine manages  the money  so less                                                               
staff time is needed for money management.                                                                                      
                                                                                                                                
3:53:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  stated that  she opposes moving  the bill                                                               
primarily because it goes too far  in putting E-tabs ahead of the                                                               
current pull-tab  system, including in the  payouts and mechanism                                                               
of gambling.   She concurred with the  concerns of Representative                                                               
Fields about increased  gambling in general.   She further stated                                                               
that the  legislation hasn't been  vetted enough by  the industry                                                               
folks working to  get E-tabs in Alaska as well  as by the current                                                               
charitable gambling industry in Alaska.                                                                                         
                                                                                                                                
3:54:37 PM                                                                                                                    
                                                                                                                                
A  roll  call vote  was  taken.   Representatives  Wright,  Prax,                                                               
Ruffridge, Saddler, and  Sumner voted in favor  of reporting CSHB
,  Version  33-GH1054\S,  Wallace, 2/8/24  out  of  committee.                                                               
Representatives Carrick and Fields  voted against it.  Therefore,                                                               
CSHB 200(L&C)  was reported out  of the House Labor  and Commerce                                                               
Standing Committee by a vote of 5-2.