Tue. Nov 19th, 2024
Opinion | Birmingham Racecourse sale may be good news for gambling legislation, employees

Before the ping of the emailed press release announcing the sale of the Birmingham Racecourse had quieted, the speculation had already started. 

What does this mean for the future of gambling in Alabama? And what does it mean for the Birmingham Racecourse? 

The answer to both appears to be: Good things. 

The Poarch Band of Creek Indians acquiring the racecourse, which has served primarily as a historical horse racing and pari-mutuel simulcast casino since 2020, sent a quick shockwave through the state’s gambling world. The track has been owned by the McGregor family since 1992 and occupies a prime piece of real estate between two major interstates in Alabama’s second largest city. 

Over the past several years, as state lawmakers have kicked around various proposals to properly legalize and tax gambling in the state, the Birmingham Racecourse has been a key sticking point. PCI officials wanted it, the McGregor family possibly could be moved to sell it and state lawmakers seemed confused on how to handle the entire thing. 

Several sources who were intimately involved in the gambling legislation debate in the 2024 session said they felt the comprehensive gaming deal began to fall apart when questions were raised about ownership of the Racecourse. “It was never clear if there was a deal to sell it or not, and that caused a lot of confusion,” one lawmaker told APR. 

To be certain, there were other issues that also doomed the gambling package last session. But heading into 2025, the ownership status of a key component in any gambling deal appears to be mostly settled. (The deal is not yet finalized and likely won’t be until early 2025, but both sides are in agreement and neither side expects any bumps.)

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According to two lawmakers with knowledge of ongoing talks over a potential comprehensive gambling deal, the agreement likely secures enough votes to get a comprehensive bill passed. 

“That’s just going by where we’ve been, where we were last session and how the votes really were playing out,” said one legislator. “We were really close last year – as close as we’ve ever been. We probably would have gotten there if not for a couple of little screwy things. There’s still stuff to iron out, but between this deal and a few other things we’ve worked through, we’re getting there.”

On the House side of things, where the comprehensive gambling bill originated last session, there is renewed hope that the Birmingham deal, and its likelihood of securing key votes, could increase chances that the original bill has a chance. That bill would have given voters a chance to approve a statewide lottery, sports wagering, a Poarch Creek compact for full casinos at their three current locations and then up to seven licenses for full casinos at other locations around the state. 

That deal was blown up in the senate, which came within a handful of votes of passing a bill to approve a lottery, a PCI compact and licenses for seven historical horse racing casinos. The historical horse racing machines, which look and function similar to slot machines, would have brought in a small fraction of the revenue of full casinos and would have created less than half the jobs, all while creating the same number of legal casinos. 

“It has never made sense why that would be preferable to anyone,” said a lobbyist who worked closely with lawmakers on the gambling package last session. “I always thought it was a bluff, so maybe this gives people a reason to actually get the right thing done.”

PCI has already announced plans to significantly expand and upgrade the Birmingham Racecourse, and that’s before any potential changes are approved to allowable gaming at the site. Should the state allow a full casino at the Birmingham location, it could turn into a key tourism component for Alabama. 

“Birmingham is one of the most vibrant cities in America, and we feel very fortunate that this acquisition will allow us to increase the investment and deepen the relationships that we already have in Birmingham,” PCI Tribal Chair and CEO Stephanie Bryan said. “When it comes to attracting tourism, this is an incredibly important area of the state. We are committed to building on the success of both the Birmingham Racecourse and Casino and our Wind Creek brand by ensuring that this property will keep tourist dollars here at home and provide jobs that support Alabama families.“

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Wouldn’t that be a nice change – keeping gambling tourism dollars at home in Alabama and using that revenue to better our state and support our people? 

Regardless of what happens in the legislature, the deal for the Birmingham Racecourse should protect its employees. Lewis Benefield, president of the Racecourse, said that ensuring his employees were taken care of was a key concern during negotiations and that he was extremely comfortable that that would be the case. In the press release announcing the sale and purchase, Wind Creek Hospitality CEO Jay Dorris made it a point to welcome the Birmingham Racecourse employees into the family. 

“The McGregor family built and has operated the Birmingham Racecourse and Casino for decades,” Dorris said. “Over those years, it became clear to us that we share many of the same goals — providing great entertainment, attracting tourism and creating economic growth in Alabama. We are really looking forward to welcoming their employees and to moving forward together.”

By Xplayer