HB11 Alabama 2017 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2017

Title

Legislative procedure, requirement that bill must be read at length prior to final passage removed, const. amend.

Summary

The bill would amend Alabama's constitution to legalize and regulate gaming, create a state gaming regulator and a lottery to fund scholarships, and set up related taxes and governance.

What This Bill Does

It would authorize gaming at a county-licensed facility and at four racetracks where pari-mutuel wagering already occurs, and create a tax system on gaming revenue and vendors. It establishes the Alabama Gaming Commission to regulate and enforce gaming, and authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, subject to legislative ratification. It creates the Alabama Lottery and the Alabama Lottery Corporation to operate the lottery, with net proceeds dedicated to scholarships held in a Lottery Trust Fund; the Legislature would pass general laws to implement the amendment. It also sets license terms, age limits, campaign-contribution rules, and directs how local tax revenue from gaming would be distributed, while preserving existing pari-mutuel and bingo activities.

Who It Affects

• Gaming operators: would be permitted to operate covered games at licensed locations and would owe state and local gross receipts taxes and a vendor tax; licenses would last 20 years and renew automatically for five years, with certain eligibility rules.
• Gaming vendors: would owe a 4% state tax on gross revenues from leases or revenue-sharing with gaming operators.
• Local governments (counties and municipalities): would receive local gross receipts tax revenues from gaming revenue, distributed according to population and municipal classifications.
• The Poarch Band of Creek Indians: the Governor would negotiate a gaming compact with them for certain locations, subject to Legislature ratification.
• Alabama residents and students: scholarships funded by lottery proceeds would be available to attend two- or four-year public colleges in Alabama.
• The Legislature and state agencies: would implement and regulate the framework through enabling laws and oversee licensing and enforcement.
• People under 21: would be prohibited from playing or working with covered games; allowed on premises only in areas not hosting games.
• Politically connected individuals and operators: there would be restrictions on campaign contributions by gaming operators and certain related officials.

Key Provisions

• Amends Section 65 of the Alabama Constitution to authorize and regulate gaming by a county-licensed operator and by existing racetrack operators, replacing the current prohibition on lotteries and gift enterprises.
• Implements a taxation scheme including a 13% state gross receipts tax on gaming revenue, a 1% additional state tax for owned equipment, a 1% local gross receipts tax, and a 4% tax on covered game vendors; proceeds are dedicated to scholarships in the Lottery Trust Fund.
• Creates the Alabama Gaming Commission with five appointed members to regulate, license, and supervise covered games, enforce laws, and coordinate with other authorities; outlines appointment, term lengths, and ethics requirements.
• authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians for conduct at specific locations, with ratification by the Legislature.
• Establishes the Alabama Lottery and the Alabama Lottery Corporation to operate the lottery; designates the Lottery Trust Fund to hold lottery proceeds and fund scholarships at Alabama public colleges, with general laws governing implementation.
• Provides that the Legislature must pass enabling general laws to implement the amendment, and allows a special session for this purpose; sets license duration (initial 20 years, then auto-renewal for five-year terms) and age restrictions (21+ to participate.
• Section 8 preserves existing legal activities such as pari-mutuel betting and bingo; Section 9 asserts supremacy of the amendment over conflicting 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