HB558 Alabama 2016 Session

Summary

Primary Sponsor

Alvin Holmes

Democrat

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

HB558 would amend Alabama's constitution to create the Alabama Lottery and Gaming Commission, establish the Alabama Lottery Corporation, allow regulated gaming at racetracks, tax gaming activities, and authorize a tribal compact with the Poarch Band of Creek Indians.

What This Bill Does

If passed, it would establish the Alabama Lottery Corporation to run a state lottery and create the Alabama Lottery and Gaming Commission to regulate both the lottery and racetrack gaming. It would allow racetracks currently licensed for pari-mutuel wagering to operate certain games at a single location, impose new taxes on gaming and vendors, and require the proceeds to be split between the State General Fund and the Education Trust Fund. It would also authorize the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians and require general laws to implement the amendment, including licensing terms and child and investor protections.

Who It Affects

• Racetracks licensed for pari-mutuel wagering: may operate 'covered games' at a single approved location, pay state and local taxes on gaming revenue, and be regulated by the new commission; licenses last 20 years with automatic five-year renewals, subject to future laws.
• State and Alabama residents (via tax revenues and regulatory framework): state and local taxes on gaming and vendors would fund the General Fund and Education Trust Fund; age restrictions (21+) apply to participation and employment in covered games; governance includes a new commission and potential tribal compact negotiations.

Key Provisions

• Establishes the Alabama Lottery and Lottery Corporation to administer the state lottery.
• Creates the Alabama Lottery and Gaming Commission (five members) to regulate the lottery, racetrack gaming, and related activities; defines appointment process, terms, and ethics/open-records requirements.
• Allows racetracks to operate 'covered games' (Class III gaming and electronic games) at a single approved location in the county; requires licenses and ongoing regulation.
• Imposes a 13% state gross receipts tax on gaming revenue, plus a 1% tax on owned equipment; a 1% local gross receipts tax; and a 4% state tax on covered game vendors; taxes allocated to the State General Fund and Education Trust Fund.
• Distributes proceeds: first to cover administration and prizes, with the remainder split equally between the State General Fund and the Education Trust Fund.
• Authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians for the conduct of covered games at specified locations, with legislative ratification required.
• Requires Legislature to pass general laws to implement the amendment and sets a special session process for enabling legislation within 30 days of ratification.
• Imposes age and employment restrictions related to covered games (21+; cannot play, operate, or be employed in covered games under certain conditions).

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