HB278 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

HB278 would amend the Alabama Constitution to authorize and regulate casino-style gaming at county-licensed operators and four racetracks, create a state Gaming Commission, tax gaming activities, and allow a compact with the Poarch Band of Creek Indians.

What This Bill Does

If passed, it would legalize 'covered games' (casino-style games) at a single, county-approved location for each gaming operator and at the four racetracks. It would create the Alabama Gaming Commission to license, regulate, and enforce rules for these games, and it would impose state and local taxes on gaming revenue plus a tax on vendors of gaming equipment. It would direct tax proceeds to the State General Fund and specify distributions to counties and municipalities; authorize the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians; and require implementing general laws by the Legislature. An extraordinary session would be required to pass enabling legislation.

Who It Affects

• Gaming operators (licensed by the county and existing racetrack operators) would be allowed to operate covered games at a single county-approved location, pay the new taxes, and be regulated by the new Alabama Gaming Commission; they must meet licensing, age, and compliance requirements set by law.
• Local and state governments, and gaming vendors, would receive new tax revenues (state gross receipts tax, local gross receipts tax, and vendor tax) and would be governed by new regulatory structures; the Governor would negotiate a compact with the Poarch Band of Creek Indians, with further laws needed to implement the amendment.

Key Provisions

• Authorization for a constitutional amendment to permit and regulate gaming by a county-licensed entity and four racetracks where pari-mutuel wagering is legal.
• Creation of the Alabama Gaming Commission to implement, regulate, and enforce covered games; five members with specified appointment rights; authority to license operators and regulate operations; includes ethics/open records requirements.
• Tax structure: 13% state gross receipts tax on gaming revenue, plus 1% additional for owned equipment; 1% local gross receipts tax; 4% state tax on covered game vendors; taxes in lieu of other taxes with specified exclusions for certain existing taxes.
• Disposition of tax proceeds: state tax receipts go to the State General Fund; local tax receipts are distributed to counties and municipalities by defined formulas.
• Restrictions and licensing: covered games may be operated only by a licensed operator at a single county-approved location; operators must be at least 21 to participate or work; initial licenses last 20 years with automatic 5-year renewals.
• Charitable bingo regulation consolidated under the Commission, with paper-based bingo required.
• Interstate and federal law compliance provisions related to transport of covered game equipment and activities.
• Governor authorized to negotiate a gaming compact with the Poarch Band of Creek Indians, with the compact submitted to the Legislature for ratification.
• Legislature required to pass general laws to implement the amendment, with a special extraordinary session within 30 days of ratification to enact enabling 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