SB130 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: A constitutional amendment to create an Alabama Lottery, establish a governing Lottery Corporation and Commission, regulate video lottery terminals, and direct proceeds into a Lottery Trust Fund.
What This Bill Does
It would allow a state-operated lottery and set up the Alabama Lottery Corporation and its five-member Commission to run and regulate it. It would permit video lottery terminals at licensed facilities, impose taxes on gaming revenue (state 22% plus a 1% municipal/ownership-based surcharge, local 2%, and a 4% vendor tax), and tax sports wagering as determined by law. Lottery proceeds would go first to prize payments and operating costs, with remaining net revenue deposited into a Lottery Trust Fund and invested, while enabling legislation would provide the details for implementation. Casinos and live dealer gambling would be prohibited.

Who It Affects
Alabama residents age 18 and older who would be allowed to buy lottery tickets and potentially win prizes, with prizes subject to state income tax.
Licensed facilities, retailers, and video lottery terminal vendors who would operate or supply the video lottery terminals, pay licensing fees and taxes, and follow regulatory rules.

Key Provisions
Creates the Alabama Lottery Corporation (an independent public body) and the Alabama Lottery Commission (a five-member board) to administer and regulate the lottery; commissioners are appointed by the Governor, Lieutenant Governor, President Pro Tempore of the Senate, and the Speaker of the House.
Defines terms and governance rules, including gaming gross revenue, licensed facilities, racetracks, retailers, and video lottery terminals, to support operation and regulation.
Establishes the Lottery Trust Fund to hold net lottery proceeds after prizes and expenses; the fund is self-funded, with monthly transfers of excess revenues and earnings invested for growth.
Imposes a tax framework: 22% state gross receipts tax on video lottery gaming revenue, an additional 1% if the facility owns rather than leases terminals, 2% local gross receipts tax, and a 4% tax on video lottery terminal vendors; sports wagering would have a state tax set by law.
Allows broad lottery game types (draw games, scratch-offs, Keno, iLottery) with video lottery terminals only at licensed facilities; prohibits casinos and live-dealer casino-style games; permits iLottery and mobile purchases.
Licensing requires a $100,000, 10-year license (non-transferable); license void if the facility remains non-operational for 12 months; enabling legislation will provide additional rules.

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