Alaska State Legislature

News from the House Majority

House Majority Press Secretary Ken Freeman (907) 465-3804
Actuality line: 1-800-478-6540
For Immediate Release: January 16, 1997 Contact: Rep. Terry Martin (907) 465-3783
January 22, 1997

MARTIN INTRODUCES BILL TO LIMIT

PULL-TAB GAMING TO 501(c)3 CHARITIES

JUNEAU, AK -- Representative Terry Martin (R-Anchorage) has introduced legislation that would limit the permitting of pull-tab gaming to organizations that qualify as tax-exempt charities under the Internal Revenue Service code.

Martin, a long-time opponent of gambling in Alaska, said the state’s current charitable gaming program allows virtually any organization, from labor unions to professional associations to political parties, to raise money--under the guise of charity--through pull-tab permits.

“Many are not charities,” Martin said. “The situation has simply gone far beyond what the legislature and the people of Alaska intended when they approved the charitable gaming program. What we have discovered is that there is now a heavy stream of dollars, generated mainly from pull-tabs, flowing into the political arena. In fact, the amount of money contributed to political campaigns by organizations with pull-tab permits is more than the total amount contributed by the oil industry.”

Martin said his bill would allow only those organizations that qualify as tax-exempt under 26 U.S.C. 501(c)(3) to obtain pull-tab gaming permits from the state. “Is this extreme?” Martin asked. “Maybe so, but we need to explore all sides of this problem to determine what our solution ought to be.”

Other organizations that do not qualify as tax-exempt, but which would like to continue to use charitable gaming activities to raise money could be issued permits to run raffles, bingo, lotteries, and myriad other classics, contests and derbies.

Martin’s research has shown that subgroups of both major political parties in Alaska have in the past used pull-tab permits to raise campaign funds. “I am hopeful that some political parties or subgroups have ceased to use the pull-tabs, but I’m not sure they have,” Martin said. “Even with campaign finance reform passed last session, we still have a big loophole, allowed by the abuse of charitable gaming permits.”

“Alaska is the only state in the nation that has allowed gam(bl)ing money direct access to the political process. This bill will put Alaska on par with other states by simply using the IRS definition of a charitable organization.”

The bill, HB 84, was referred to the state affairs, labor and commerce and finance committees. Martin said he will ask for hearings right away on the bill.

###