Committee adopts committee substitute as working document for bill to legalize electronic pull tabs

The Alaska Senate Labor and Commerce Committee on Jan. 26 held its first hearing this year on Senate Bill 170, a proposal to legalize electronic pull tabs and revise charitable‑gaming rules. Conrad Jackson, committee staff, presented a committee substitute that adds reporting of the source and monetary value of marketing and promotional materials, prohibits manufacturers from giving gifts or distributing electronic pull tabs to distributors in which they hold ownership interests, and limits certain prizes and payouts.

Specific changes in the CS described by Jackson include a top prize cap of $10,000 for a bingo session and $2,500 for a single bingo game; a cap on total door prizes at $40,000 per month or $480,000 per year; an "ideal payout" limit not to exceed 90%; a permittee payout to a vendor cap of 25%; and a change from weekly vendor trues to monthly vendor payments due by the 15th of the month for the previous month's sales. The CS also adds restrictions to prevent distributors from supplying pull tab games to permittees or licensees owned or managed by close relatives of a distributor's owner or employee, eliminates gifts (removing a prior $250 gift cap), and expands the definition of a qualified organization so certain newer booster clubs may qualify under specified conditions.

Senator Dunbar asked whether the new reporting requirement for promotional materials is intended to prevent monopolistic behavior by distributors giving value to vendors. Jackson and Chair Bjorkman explained the reporting ties back to prohibitions on gifts and is intended to avoid the appearance of influence and preserve competition among manufacturers and distributors so charities maximize net proceeds.

After discussion the committee substitute was adopted as the working document and Senate Bill 170 was set aside for further consideration; the committee announced it will reconvene two days later to resume consideration of pending retirement bills and other items.