HB29 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

First Special Session 2016

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

This bill would amend Alabama’s constitution to create a state lottery and a governing Alabama Lottery Corporation, regulate certain tribal bingo games in select counties, and impose new taxes on gaming and vendors.

What This Bill Does

It would establish the Alabama Lottery and the Alabama Lottery Corporation to run and regulate the lottery, and allow certain tribal bingo games in Mobile, Jefferson, Greene, Macon counties, and the Town of White Hall to operate under federal Indian gaming rules. It would impose state and local taxes on gaming revenue and on gaming equipment vendors, with proceeds used first for administration and prizes and the remainder placed in a Lottery Trust Fund for future appropriation. It would create the Alabama Lottery Commission to regulate and supervise the lottery and authorize the Governor to negotiate a compact with the Poarch Band of Indians; an extraordinary legislative session would be held to pass implementing laws.

Who It Affects

• Alabama residents and taxpayers who would be affected by the introduction of a state lottery, changes in tax structure for gaming, and how lottery proceeds are used.
• Native American tribes in Alabama that operate bingo-style electronic machines in the listed counties, who would be allowed to operate under IGRA regulations and taxed under the new state and local tax framework.

Key Provisions

• Amends Section 65 to establish the Alabama Lottery and create the Alabama Lottery Corporation to run and regulate the lottery, with proceeds first paying administration and prizes and the balance deposited to a Lottery Trust Fund for future appropriation.
• Allows bingo games in Mobile County, Jefferson County, Greene County, Macon County, and the Town of White Hall to be played on electronic machines authorized by the National Indian Gaming Commission under IGRA, operated by Native American tribes in Alabama.
• Imposes a state gross receipts tax on gaming revenue, a local gross receipts tax (1%) on gaming revenue, and a state gaming vendor tax; outlines payment deadlines and states that these taxes replace other state or local taxes for facilities in the eligible areas; directs where tax proceeds go.
• Creates the Alabama Lottery Commission to implement, regulate, and supervise the Alabama Lottery and the Alabama Lottery Corporation; authorizes reciprocal agreements with other jurisdictions for operation and promotion of eligible lottery games.
• Gives the Governor authority to negotiate a compact with the Poarch Band of Indians; requires an extraordinary legislative session within 30 days of the amendment’s effective date to pass implementing laws.

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