Alaska hearing on electronic pull tabs splits industry and charities over costs and protections

Conrad Jackson, staff to Sen. Jesse Bjorkman, told the House Labor and Commerce Committee that HB 386 would bring charitable pull-tab gaming into the digital age by authorizing tablet-based electronic pull tabs and modernizing payment mechanics for nonprofits.

Supporters said the change could generate new revenue and improve oversight. "Electronic charitable gaming creates a more accountable system," Justin Mills, commander of American Legion Post 1, testified, adding that digital transactions are easier to track and report. Bill Breslow, president of Diamond Game Enterprises, said Minnesota's rollout of electronic pull tabs increased gross sales and produced complementary growth in paper pull-tab revenues.

Industry operators and rural vendors urged caution. "The expense of electronic pull tabs is nearly double the current cost of paper," said Sandy Powers, owner-operator of Big Valley Bingo, telling lawmakers that higher manufacturer or distributor shares will squeeze the proceeds charities receive, especially in low-volume rural communities. John Powers, who operates Tudor Bingo in Anchorage, said HB 386's auto-close feature and the bill's 90% payout maximum could raise payouts to about 92% in practice, reducing money available for nonprofits.

Other witnesses raised technical and fairness concerns. Dave Lambert, an operator in Fairbanks, opposed a proposed $100,000 fee that would let the Marine Highway System administer gaming on ferries, saying it would divert funds from nonprofits. Mary Magnuson of Arrow International said ownership and affiliate restrictions in the bill could unintentionally exclude longstanding Alaska distributors and reduce competition.

Manufacturers and some vendors defended the bill's approach. "We've seen electronic pull tabs be incremental and complementary," Breslow said, urging lawmakers that the draft is workable and noting stakeholders in other states have continued to refine rules after initial rollouts. Matt Fisher, a distributor, said manufacturing and game-development costs are high and that tablets may be necessary as paper-tab costs rise.

Sen. Jesse Bjorkman, the sponsor, told the committee the bill sets a 30% minimum payout to charities "as a mandated minimum" and said he would work with stakeholders on amendments to address concerns about ferry implementation, probate transfers and market-structure issues.

The committee took invited testimony from operators, manufacturers and out-of-state experts and did not vote on the measure. Lawmakers signaled they will continue to work on technical fixes and potential amendments at a later hearing.