SB453 Alabama 2015 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular 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 to create an Alabama Lottery, regulate casino-style gaming at four racetracks, tax gaming activities, and allow a governor-led compact with the Poarch Band of Creek Indians.

What This Bill Does

Proposes establishing the Alabama Lottery and the Alabama Lottery Corporation to run the lottery and regulate 'covered games' at racetracks. It imposes a 13% state gross receipts tax on gaming revenue (plus 1% if a racetrack owns the equipment) and a 1% local gross receipts tax, plus a 4% tax on covered-game vendors, with revenues directed to the state general fund and a Lottery Trust Fund for lottery proceeds after prize payments. It creates the Alabama Lottery and Gaming Commission to regulate all gaming activities, sets licensing rules (20-year initial licenses with 5-year renewals), and authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, with enabling laws required to implement the amendment.

Who It Affects

• Racetracks currently licensed to conduct pari-mutuel wagering: would be allowed to operate covered games at a single approved location and would pay the new state and local taxes, plus face licensing requirements and 20-year license terms with possible renewals.
• Local governments, state government, and residents: would see local gross receipts tax revenues distributed to counties and municipalities, state gross receipts and vendor taxes funding general government needs, and lottery proceeds managed through the Lottery Trust Fund for appropriation by the Legislature.

Key Provisions

• Establishes the Alabama Lottery and the Alabama Lottery Corporation to administer the lottery and oversee covered games.
• Authorizes four racetracks to operate covered games (casino-style) at a single location in the county where they are licensed for pari-mutuel wagering; sets age limit of 21+ for players and workers.
• Imposes a 13% state gross receipts tax on gaming gross revenue (plus 1% if racetrack-owned equipment is used) and a 1% local gross receipts tax; a 4% tax on covered game vendors; local tax distributions split between counties and municipalities.
• Proceeds from state gross receipts and vendor taxes go to the State General Fund; lottery proceeds go into a Lottery Trust Fund for future appropriation by the Legislature.
• Creates the Alabama Lottery and Gaming Commission with five members and specific appointment rules; grants regulatory authority over the lottery, racetrack gaming, and consumer protections; includes enforcement powers and ethics/open-records requirements.
• Requires enabling general laws to implement the amendment; mandates a special extraordinary session to pass enabling legislation; authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, subject to 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