Senate committee hears mixed testimony on modernizing charitable pull tabs; work on committee substitute underway

The Senate Labor and Commerce Committee on Wednesday heard public testimony on Senate Bill 170, a proposal to modernize Alaska's charitable gaming rules to authorize electronic pull tabs and other electronic devices while the committee prepares a draft committee substitute.

The bill's sponsor, Senator Christine Bjorkman, chair of the committee, told members the goal is to "modernize our charitable gaming statutes and maximize revenue for charities and nonprofits without turning charitable gaming into anything that resembles gambling and all of the social ills that go with it." She opened the record for public testimony and said the committee will accept suggested changes to a forthcoming committee substitute.

Why it matters: SB 170 would change how small nonprofits, fraternal and veterans service organizations raise funds across Alaska. Supporters say electronic pull tabs can increase revenue, improve accounting and preserve the social character of pull-tab fundraising. Opponents at the hearing said some device and payout restrictions in the current draft would advantage large operators over volunteer-run organizations and could impose staffing and cost burdens on small groups.

Speakers during public testimony included Krista Foley, who identified herself as "a department creator for AMVET Alaska," and told the panel the bill "leans heavily for its operators and forgets about small VSO[s] out here" and urged the committee to preserve choice for individual organizations on what devices they may use. Michelle Sass, who said she represents veterans groups, testified that "SB 70 in its current form puts this kind of grassroots giving at risk," warning that a handheld-only device requirement could create a staffing burden for small organizations. Charles Boring and Kayla Hansen (Soledadna Chamber of Commerce gaming manager) also urged flexibility in device choice and higher payout limits.

Not all testimony opposed the bill. Cody Oatman, business representative for the Alaska District Council of Laborers, said his organization's scholarship fund receives proceeds from charitable gaming and that tablets "will enhance accuracy and streamline accounting for charities," adding tablets would keep operational and maintenance costs low and be geographically manageable for Alaska.

Details and clarifications from testimony and committee remarks:

- Several speakers urged that small volunteer-run veteran service organizations and committees be allowed to choose the devices they use rather than be limited to a single device type; one witness noted veterans posts are private, membership-based clubs and argued that restrictions should reflect that operational reality.

- Witnesses suggested raising payout/limit caps; one public speaker recommended raising limits to $7,000,000 "across the board." The sponsor explained the bill's proposed limits were designed to allow multiple nonprofits to benefit and to avoid concentrating play under high limits.

- The committee chair said cabinets and large, slot-like machines were intentionally excluded from the draft to keep charitable gaming social and distinct from casino-style gambling.

Committee action: The committee took public testimony and "set the bill aside" for further work; the chair said staff will prepare a draft committee substitute and asked interested parties to submit proposed changes to the chair's office.

What was not decided: The committee did not vote on any amendments or adopt final statutory language. Questions remain about the final device rules, payout limits, and how any new regulations would be applied to small, volunteer-run nonprofits versus larger operators. The chair invited written comment and said public testimony would remain open for a future hearing.

Looking ahead: The committee signaled it will circulate a committee substitute for SB 170 and seek input from stakeholders before returning the bill for further consideration.