HB7 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

First Special Session 2016

Title

Taxation, check-off contribution to State Park Division of the Dept. of Conservation and Natural Resources, Dept. of Mental Health or the Alabama Medicaid Agency, Sec. 40-18-140 am'd.

Summary

A constitutional amendment to legalize and regulate gaming in Alabama, create a state lottery funded by gaming taxes to provide scholarships, and establish a new regulatory commission.

What This Bill Does

It would authorize gaming by a county-licensed operator and the four existing racetracks where pari-mutuel wagering is legal. It would set taxes on gaming revenue, local revenue, and vendors, with the money used to fund scholarships through a new Lottery Trust Fund. It would create the Alabama Gaming Commission to regulate gaming and issue licenses, and establish the Alabama Lottery and Lottery Corporation to run the lottery. It would authorize the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians and require enabling laws to implement the amendment.

Who It Affects

• Alabama residents who could receive up to two years of scholarships to attend Alabama public two-year or four-year colleges, funded by the Lottery Trust Fund from gaming and vendor taxes.
• Gaming operators, gaming equipment vendors, and the counties and municipalities where gaming would be conducted, who would be taxed, licensed, and regulated by the new Alabama Gaming Commission.

Key Provisions

• Authorizes and regulates gaming by a county-licensed operator and existing pari-mutuel racetrack operators.
• Imposes a 13% state gross receipts tax on gaming revenue, a 1% additional tax on owned gaming equipment, a 1% local gross receipts tax, and a 4% state tax on gaming equipment vendors; these taxes are in lieu of most other taxes, with some existing taxes still applying.
• Proceeds from these taxes are dedicated to scholarships for Alabama residents attending public two- and four-year colleges via the Lottery Trust Fund.
• Creates the Alabama Gaming Commission to regulate, supervise, and enforce laws related to covered games, with five members and defined appointment rules, terms, and ethics/open-records requirements; licenses initial operators for 20 years with automatic renewals.
• Establishes the Alabama Lottery and Alabama Lottery Corporation to administer the lottery, and directs net lottery proceeds to the Lottery Trust Fund for scholarships; allows for reciprocal agreements with other jurisdictions.
• Authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, subject to legislative ratification.
• Requires enabling legislation to implement and regulate the amendment and details such as licensing, enforcement, and age restrictions for players and employees.

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

Subjects

Taxation