SB8 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

First Special Session 2015

Title

Alabama Lottery and Alabama Lottery Corporation estab., gaming regulated at racetracks where pari-mutuel wagering currently legal, state gross receipts tax and local gross receipts tax levied, tax on vendors of gaming equipment levied, disposition of proceeds provided, Alabama Lottery and Gaming Commission created to regulate and administer gaming, Governor authorized to negotiate a compact with Poarch Band of Indians, constitutional amendment

Summary

A constitutional amendment proposal to create an Alabama Education Lottery and regulate casino-style gaming at racetracks, with taxes, a new regulator, and a potential compact with the Poarch Band of Creek Indians.

What This Bill Does

It would establish the Alabama Education Lottery Corporation and the Alabama Education Lottery and Gaming Commission to run and regulate the lottery and gaming. Four racetracks could offer covered games at a single location in their county, with taxes on gaming revenue and on equipment vendors. Proceeds would pay for administration and prizes first, then go to the Education Trust Fund, including a minimum of $50 million each year for postsecondary scholarships. It also authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians and requires general laws to implement the amendment, along with age restrictions and licensing rules.

Who It Affects

• Racetrack operators and owners: would be allowed to operate covered games at a single location in their county and would pay state and local taxes on gaming revenue and vendor taxes.
• Residents and visitors who gamble: potential access to casino-style games at racetracks, with a minimum age of 21 to participate.
• Gaming equipment vendors: would pay a 4% tax on gross revenues from leases or revenue-sharing arrangements with racetracks.
• State and local governments: would receive state gross receipts taxes and local gross receipts taxes from gaming, with local shares distributed to counties and municipalities.
• Education sector and scholarship programs: proceeds channel to the Education Trust Fund and scholarship funding, including a guaranteed minimum $50 million annually for postsecondary education scholarships.
• New regulatory bodies: the Alabama Education Lottery and Gaming Commission and the Alabama Education Lottery Corporation would oversee operation, regulation, and enforcement.
• Poarch Band of Creek Indians and related parties: the Governor would negotiate a gaming compact with them, subject to legislative ratification.

Key Provisions

• Proposes amending Section 65 of the Alabama Constitution to create the Alabama Education Lottery, the Alabama Education Lottery Corporation, and to regulate gaming at racetracks where pari-mutuel wagering is legal.
• Allows four racetracks to operate 'covered games' (casino-style games) at a single location in their county; defines covered games and vendors; sets licensing framework.
• Imposes a 13% state gross receipts tax on gaming gross revenue, plus a 1% tax on owned covered game equipment, and a 1% local gross receipts tax; imposes a 4% tax on covered game vendors; taxes are in lieu of most other taxes on covered games.
• Allocates proceeds first to administration and prizes, then to the Education Trust Fund, with at least $50 million annually dedicated to postsecondary education scholarships.
• Creates the Alabama Education Lottery and Gaming Commission (7 members) with regulatory powers over the lottery, gaming at racetracks, and compliance with laws; outlines appointments, terms, and ethics/open records requirements.
• Racetracks receive an initial 20-year license to operate covered games, with automatic 5-year renewals subject to laws enacted to implement the amendment; youth and other restrictions are specified.
• Authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, with any such compact needing legislative ratification.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments