SB381 Alabama 2010 Session

Summary

Primary Sponsor

George M. “Marc” Keahey

Democrat

Session

Regular Session 2010

Title

Gaming Commission, established, commercial bingo operations regulated and taxed, distrib., const. amend.

Summary

SB381 would amend Alabama's constitution to limit bingo gaming, create a state regulatory body, and tax bingo operators and vendors to fund state programs and local governments.

What This Bill Does

It sets a limit of eight bingo destination points and requires investment in non-gaming amenities to promote jobs and tourism. It creates the Alabama Gaming Commission to regulate bingo operators, facilities, and vendors, oversee licensing and enforcement, and ensure open accounting of proceeds. It establishes a tax system on bingo activities and directs the revenue to state programs (Medicaid and Education Trust Fund) and to local governments, with additional funds from a third-party tax on bingo vendors; it also allows racing commissions to regulate bingo at racetracks under the new framework and sets licensing and enforcement rules.

Who It Affects

• Bingo Operators: would be licensed, taxed, and regulated; subject to background checks and ongoing compliance requirements.
• Bingo Vendors: would be taxed under a separate third-party tax and must be licensed; subject to compliance and oversight.
• Non-Profit Organizations that run bingo: would operate under defined rules and could receive tax credits for contributions up to 5% of their gross bingo revenue.
• Local Governments (municipalities and counties): would receive a portion of bingo-related taxes to fund local services.
• State Medicaid Program and Education Trust Fund: would receive a share of the gross receipts and third-party taxes to support health and education programs.
• State agencies (Department of Revenue and the new Commission): would administer and enforce the tax and regulatory framework, with transitional duties.
• General public and players: would see enhanced regulation and limited bingo locations, with age restrictions noted for participation and employment.

Key Provisions

• Limit Bingo to eight destination points in Alabama, with minimum investments in non-gaming amenities to promote jobs and tourism.
• Create the Alabama Gaming Commission (three members) to regulate Bingo, issue licenses, conduct investigations, and enforce rules; establish funding and oversight mechanisms.
• License and regulate Bingo Operators, Bingo Facilities, and Bingo Vendors; require background checks and prohibit license issuance to those not meeting integrity and suitability standards.
• Impose a Gross Bingo Revenue tax of 25% on licensed operators and 50% on unlicensed operators; establish a 10% tax on Bingo Vendors; provide a nonprofit contribution credit up to 5% of Gross Bingo Revenue.
• Distribute tax proceeds: 80% to the State, 8% to the local municipality, and 12% or 20% to the county depending on location; create separate state accounts for administration and dedicated uses.
• Dedicate remaining net proceeds to the Education Trust Fund (for public schools) and the state General Fund (for Medicaid) with specified share allocations (Education Trust Fund 80%, General Fund 20% of remaining proceeds).
• Institute licensing fees and annual fees (caps: up to $500,000 for a Bingo Facility, $200 for a key employee, $25 for an employee, and $10,000 for a Bingo Vendor) with legislature having authority to adjust every five years.
• Provide enforcement powers including background checks, audits, inspections, subpoenas, penalties, and the ability to seize Bingo Technologic Aids for inspection.
• Allow racing commissions to regulate Bingo at racetracks, but require coordination with the Alabama Gaming Commission and fund any additional regulatory costs from the Commission.
• Section 22 makes the amendment self-executing, but grants the Legislature authority to pass supplemental laws to aid implementation, as long as they do not conflict with the amendment.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments