SB116 Alabama 2019 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Jim McClendon
Republican
Session: Regular Session 2019
Title: Lottery, authorized, Alabama Lottery Corporation, created, distrib. of revenues for college scholarships, Sec. 65, Constitution of Alabama of 1901 am'd., const. amend.
Summary: SB 116 would create the Alabama Lottery Act to establish a state-run lottery with a new Alabama Lottery Corporation, impose taxes on gaming and video lottery equipment, and dedicate half of proceeds to the General Fund and half to the Education Trust Fund, pending voter ratification of a constitutional amendment.
What This Bill Does
It creates the Alabama Lottery Commission and the Alabama Lottery Corporation, defines key terms (like gaming revenue, retailers, and video lottery terminals), and sets up governance and auditing. It imposes a state gross receipts tax on gaming revenue, a local gross receipts tax, and a tax on video lottery vendors, with the taxes split between state and local funds. It directs lottery proceeds to be split 50% to the State General Fund and 50% to the Education Trust Fund, and establishes prize verification, payment rules, and handling of unclaimed prizes, along with retailer and vendor compliance and transparency requirements.

Who It Affects
Residents and taxpayers of Alabama, who would be affected by new gaming taxes and by the allocation of lottery proceeds to state and education funding.
Lottery retailers and video lottery vendors, who would be licensed, regulated, and required to comply with deposits, certifications, procurement rules, contract terms, and enforcement provisions.

Key Provisions
Creates the Alabama Lottery Commission and the Alabama Lottery Corporation with an executive director and internal auditing/reporting requirements.
Imposes a state gross receipts tax on gaming revenue, a local gross receipts tax, and a video lottery terminal vendor tax, with revenues split between the State General Fund and the Education Trust Fund.
Allocates lottery proceeds 50% to the State General Fund and 50% to the Education Trust Fund, with monthly transfers and required disclosures.
Establishes a statewide network of lottery retailers, requires retailer certificates, and sets rules for the placement of vending machines and age-verification measures.
Outlines prize verification and payment processes, deadlines to claim prizes, anonymity options for large prizes, and handling of unclaimed prizes for future prizes or public programs.
Gives the executive director contract oversight authority, including suspension/revocation/termination for specified reasons and procurement control.
Provides lien rights and enforcement mechanisms to secure remittance of lottery proceeds from retailers, plus audit and record-keeping requirements.
States that implementation depends on voter ratification of the constitutional amendment; if not ratified, the act becomes null and void.

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