HB223 Alabama 2017 Session

Summary

Primary Sponsor

John W. Rogers

Democrat

Session

Regular Session 2017

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

HB223 would amend the Alabama Constitution to create an Alabama Lottery and regulate racetrack-based covered games, impose taxes on gaming, and authorize a state commission and governor to negotiate a compact with the Poarch Band of Creek Indians.

What This Bill Does

It would establish the Alabama Lottery Corporation to run the state lottery and create the Alabama Lottery and Gaming Commission to regulate both the lottery and racetrack gaming. It would allow four racetracks with existing pari-mutuel wagering to operate covered games (Class III) at a single approved location, with licensing and oversight, and require participants and workers to be at least 21 years old. It would impose a 13% state gross receipts tax on gaming revenue, a 1% local gross receipts tax, and a 4% state tax on covered game vendors (plus a 1% charge if racetracks own equipment), with proceeds funding the state General Fund and Lottery-related programs. It would also authorize the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, and require the Legislature to pass general laws to implement the amendment, with a special session called to enable those laws.

Who It Affects

• Four racetracks currently licensed to conduct pari-mutuel wagering (and their owners and employees), who would be permitted to operate covered games, face new licensing requirements, and pay new taxes.
• Alabama residents and local governments, who would see tax revenue and proceeds allocated to the state General Fund and local distributions, plus public policy changes such as age restrictions and regulatory oversight.

Key Provisions

• Proposes a constitutional amendment to create the Alabama Lottery and Alabama Lottery Corporation and to regulate gaming at four racetracks where pari-mutuel wagering is legal.
• Creates the Alabama Lottery and Gaming Commission to regulate the Lottery and oversee covered games at racetracks; defines commission structure, appointments, terms, and compliance requirements.
• Defines Covered Game (Class III gaming) and Covered Game Vendor; restricts covered games to racetracks at a single location per county; imposes age 21+ restrictions for players and workers.
• Imposes state gross receipts tax of 13% on gaming revenue, plus 1% for owned equipment; imposes a local gross receipts tax of 1%; imposes a 4% tax on covered game vendors; proceeds go to the State General Fund and Lottery Trust Fund as designated.
• Racetracks must remit taxes monthly; taxes replace other taxes for covered games, but racetracks still pay other standard taxes (income, property, sales where applicable).
• Provides initial 20-year licenses for racetracks to operate covered games, with automatic 5-year renewals subject to general laws and commission rules; licenses can be denied, revoked, or suspended under those laws.
• Allows the Lottery Corporation to enter reciprocal agreements for lottery operations with other jurisdictions; limits Lottery operations to lotteries approved by the commission.
• Requires the Legislature to pass general laws to implement the amendment; authorizes a special extraordinary session for enabling legislation within 30 days of ratification.
• Authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians for the three locations where they conduct gaming, with the compact submitted to the Legislature for ratification.

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