House panel adopts cap and dozens of technical changes in long debate over electronic pull‑tabs

The House Labor and Commerce Committee on Feb. 14 advanced SB170, a bill that would authorize and regulate electronic pull‑tab games for charitable gaming in Alaska, after a day of detailed debate over device caps, payout limits, ownership rules and market structure.

Committee members spent much of the morning and afternoon considering competing policy goals: protect small, rural operators and charities that rely on pull‑tab proceeds, while guarding against vertical integration or market consolidation by large manufacturers and distributors.

Sandy Powers, who identified herself as the owner‑operator of Big Valley Bingo in Wasilla, told the committee she supports a tight limit on devices where alcohol is served. "Our thought originally in the bill was to limit any establishment that serves alcohol to 10 tablets," Powers said, adding an aim to avoid "bars becoming mini casinos."

Manufacturers and distributors warned that some proposals would distort the market. Matt Fisher of Alaska Wholesale argued that large, vertically integrated companies have the scale to drive smaller operators out of business and urged careful treatment of ownership provisions. "If Arrow's allowed to be a manufacturer distributor, they're going to also have to do that," Fisher said, adding that small local distributors could be unable to compete.

Senator Bjorkman, the bill sponsor, repeatedly framed the bill's central goal as maximizing returns to charities. He told the panel the drafting choices seek to preserve competition and ensure the charitable gaming framework benefits nonprofits rather than outside corporations.

Key actions recorded in the hearing included:
- Amendment e.20 (adds a 25‑tablet cap per establishment in the bill section covering licensees, permittees and vendors): adopted by roll call, 4–1.
- Amendment e.8 (would have required vendors to pay charities up front for both paper and electronic pull‑tab series): failed, 1–4.
- Amendment e.13 (revises ownership prohibitions so a manufacturer may have an ownership interest in no more than one Alaska distributor): adopted after conceptual amendment and committee discussion.
- Amendment e.14 (proposal to lower electronic pull‑tab payout cap from 90% to 85% to align with paper averages): failed, 1–4.
- Debate and multiple procedural motions later in the day led to rescinds, reintroductions and additional votes; committee members heard further testimony from operators such as Dave Lambert in Fairbanks and company representatives including John Gallagher of Arrow about the competitive effects of vertical integration.

Despite the contested amendments, the committee ultimately reported SB170 out of committee with individual recommendations and attached fiscal notes. Sponsors said the bill will move forward in the legislative process with the committee's set of amendments.

The committee’s action sends SB170 to the next step in the legislature, where remaining policy questions — including the balance between protecting charities and preserving market competition — will be reviewed by the full chamber and potentially other committees.