Alaska Marine Highway System proposed for airborne slot machines
The Alaska Marine Highway System (AMHS) is once again being targeted by slot machines due to legislation in the capital city of Juneau.
Alaska Rep. Jesse Sumner (R-Wasilla) introduced House Bill 197 last year, but the bill never passed the House Transportation Committee. The bill, which would take effect in 2024, would create a legal framework that would allow visitors on the state's ferries to play Las Vegas-style slot machines.
Sumner reintroduced HB197 last week. The House Transportation Committee first considered the measure.
Sumner said the tax benefits that would come with allowing slot machines on the state's Marine Highway system would bring much-needed revenue to the state-owned company. Republicans cited state reports saying the Marine Highway System suffers annual losses.
"Introducing electronic gaming on AMHS ferries has the potential to generate additional revenue through fees, taxes and a percentage of gaming revenue, similar to land-based casinos, thereby helping to fund maritime services," Sumner said.
Lawmakers believe slot machines on the ferry would attract new visitors and boost regional economic growth by reinvesting gambling revenue. He believes many Alaskans take the ferry just to gamble.
Financial forecasts questioned
AMHS' operations include the state's south-central coast, the Eastern Aleutian Islands and the interior waterways of Alaska and British Columbia. Ferries carry approximately 350,000 passengers and more than 100,000 vehicles annually.
The Marine Highway System stretches over 3,500 miles. Operating year-round, it provides essential transportation to approximately 35 coastal communities, many of which are inaccessible by road.
Sumner regulations would allow slot machines to start after the ferry is three miles from land. He estimates the state could collect $20 million a year from the ferry slot tax, a figure he considers conservative.
Opponents, however, say Sumner's current bill would only allow slots on a few routes because most ships stay within three miles of the coast. Supporters of ferry slots say a simple solution would be to reroute ships at least three miles away from land.
AMHS Maritime Director Craig Tornga told The Alaska Lighthouse that the only ferries currently operating more than three miles offshore are between Kodiak Island and the mainland and elsewhere in the Gulf of Alaska. Dutch Harbor on one side and some parts of the country are Prince William Sound. Toenga also questioned whether the aging ferries would be able to meet the slot machine's huge power needs.
Not many lawmakers or government officials are willing to raise ferry fares because they are already expensive. For a trip direct from Juneau to Sitka for two adults and a car, the transit fee is $364. The same trip without chartering a car would cost US$178.
State Gambling Laws
The three-mile requirement is critical because current Alaska law prohibits casino gambling. However, Alaska defines its maritime boundaries (sometimes called "territorial waters") as three miles from the coast.
Sumner said allowing ferries to offer slot machines at least three miles off the Alaska coast would allow gaming terminals to operate without violating the state's regulatory regulations.
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Source: www.casino.org
