HB208 Alabama 2016 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular 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

HB208 would amend Alabama's constitution to authorize and regulate casino-style gaming at licensed facilities, create a state Gaming Commission, tax gaming activities, and allow a tribal gaming compact.

What This Bill Does

If passed, the amendment would allow gaming by county-licensed operators and racetrack licensees at a single location in each county. It would create the Alabama Gaming Commission to license, regulate, and enforce gaming operations, with general laws needed to implement the change. It would tax gaming revenue and related activity (state 13% gross receipts tax, 1% extra on owned equipment, 1% local gross receipts tax, and 4% vendor tax) and specify how tax proceeds are distributed, plus authorize a governor’s compact with the Poarch Band of Creek Indians once the Legislature approves implementing laws.

Who It Affects

• Gaming operators and covered-game vendors: would be licensed, taxed, and regulated, and must follow license terms and age/work rules.
• Local governments (counties and municipalities): would receive local tax revenue from gaming and oversee local aspects of licensing until the state Gaming Commission is fully established.

Key Provisions

• Defines covered games as Class III games (table games and electronic versions) and excludes pari-mutuel wagering.
• Authorizes gaming operators licensed by the county where the sponsor resides and by racetrack licensees to operate; limits operation to a single location per operator.
• Creates the Alabama Gaming Commission with five members and outlines appointment and term rules; grants regulatory and enforcement powers.
• Imposes taxes: 13% state gross receipts tax on gaming revenue; 1% additional state tax on owned equipment; 1% local gross receipts tax; 4% state tax on covered-game vendors; proceeds go to the State General Fund and local governments per specified distribution methods.
• License terms include a 20-year initial license with automatic 5-year renewals; prohibits under-21 participation and certain political contributions by operators or owners.
• Requires general laws to implement the amendment and calls for a special session to enact enabling legislation; authorizes the Governor to negotiate a compact with the Poarch Band of Creek Indians, subject to Legislature ratification.
• Local racing commissions would supervise covered games until the Alabama Gaming Commission is fully established and would then transition to state regulation.
• Section 3 confirms compliance with federal law to allow transport of covered games and equipment used in Alabama.

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