HB43 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

John W. Rogers

Democrat

Session

First Special Session 2016

Title

Slot machines, Legislature authorized to legalize, tax, and regulate, State Gaming Commission and State Casino Location Commission, established, certain campaign contributions restricted, penalties, Section 65 (Section 65, Recompiled Constitution of Alabama of 1901, as amended), am'd., const. amend.

Summary

This bill would amend the Alabama Constitution to create an Alabama Lottery with a regulating Alabama Lottery Corporation and State Gaming Commission, authorize and tax covered games, and restrict political contributions by licensees.

What This Bill Does

Establishes the Alabama Lottery and a governing Alabama Lottery Corporation to regulate it, plus a State Gaming Commission to license and oversee covered games (Class III gaming) at approved locations. Allows, taxes, and regulates covered games in the state, with licenses awarded by competitive bidding to the highest responsible bidder and caps of five locations and one operator per location. Imposes a 40% state gross receipts tax and an 8% local gross receipts tax on gaming revenue, creates the State Casino Gaming Fund in the General Fund, and directs how proceeds and fees are distributed and remitted. Restricts political contributions by licensees or people with a financial interest in covered games, including specific limits on who may donate and a lookback requirement for contributions.

Who It Affects

• Licensees and covered game vendors who would need licenses, pay substantial fees, and follow new regulatory and tax rules.
• Local governments (counties and municipalities) and residents who would receive a share of tax proceeds and must participate in local referendums to approve locations.

Key Provisions

• Creates the Alabama Lottery and the Alabama Lottery Corporation to regulate the lottery; establishes a State Gaming Commission to license and regulate covered games.
• Defines covered games and assigns licensing, regulation, and enforcement to the State Gaming Commission; licenses may not be transferred and are subject to suspension or revocation; unlawful activity without a license is a Class C felony.
• Sets licensing rules: competitive bidding for licenses, minimum capital expenditure of $100 million, application fee of $250,000, initial license fee of at least $5,000,000, annual renewal fee of at least $2,500,000, and local per-slot fees with caps ($1,500 per slot, up to $1,500,000) for locations in municipalities and similar fees to counties if not in a municipality.
• Imposes a 40% state gross receipts tax and 8% local gross receipts tax on covered games; creates the State Casino Gaming Fund in the General Fund to hold tax revenue and licensing fees; proceeds are distributed to state and local governments monthly.
• Requires local referendums in the county where a covered game location would operate; places limits on the number of locations and operators (no more than five locations, no more than one operator per location).
• Prohibits certain political contributions by licensees or people with a pecuniary interest in covered games to legislators, commission appointees, or related PACs, with penalties and a three-year lookback proviso for contributions; clarifies additional anti-monopoly safeguards.

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