SB319 Alabama 2021 Session

Summary

Primary Sponsor

Jim McClendon

Republican

Co-Sponsors

Garlan GudgerDel Marsh

Session

Regular Session 2021

Title

Lottery, authorized, Alabama Lottery Corporation, created, distrib. of proceeds, Lottery Trust Fund, established, levy a state and local tax on gaming gross revenue from video lottery terminals, Sec. 65, Constitution of Alabama of 1901 am'd., const. amend.

Summary

SB319 would amend Alabama's constitution to create an Education Lottery, authorize casino-style games and sports wagering at designated locations, establish regulatory bodies, fund education and infrastructure through new taxes, and require a state compact with the Poarch Band of Creek Indians.

What This Bill Does

Creates the Alabama Education Lottery Corporation to operate the lottery and the Alabama Gaming Commission to regulate casino-style games, bingo, raffles, and sports wagering. Designates specific counties where casino-style games and video lottery terminals can operate, with licenses awarded via competitive bidding and a 10-year license term. Imposes taxes on net gaming revenue and on winnings, with proceeds allocated to the Gaming Trust Fund, education programs (including scholarships), broadband, health, mental health, bridges, and local government use. Requires the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians and establishes regulatory powers, enforcement tools, and dependence on implementing general laws.

Who It Affects

• Alabama residents and players who participate in the Education Lottery and casino-style games or sports wagering, through winnings withholdings and the use of proceeds for education, broadband, and infrastructure.
• Covered operators and gaming vendors (including the Poarch Band of Creek Indians) and counties/municipalities hosting covered locations, who would obtain licenses, pay taxes and fees, and receive a share of revenues under the new regime.

Key Provisions

• Establishes the Alabama Education Lottery Corporation to operate the lottery and the Alabama Gaming Commission to regulate gaming activities.
• Authorizes casino-style games and video lottery terminals at designated covered locations in Jefferson, Mobile, Macon, Greene, Houston, and a location in DeKalb or Jackson County (involving Poarch Band lands), with a competitive bidding process for licenses.
• Imposes a 20% net gaming revenue tax on casino-style games and on sports wagering; defines use of proceeds through the Gaming Trust Fund and to counties/municipalities; allows tax rate adjustments no more than 2% per consideration and not above 30%.
• Imposes a 5% withholding tax on winnings over $1,000 to the Education Trust Fund and a 2% withholding tax to the Transportation Rehabilitation and Improvement Program II, with funds directed to specified programs.
• Creates the Gaming Trust Fund in the State Treasury to fund broadband, health and mental health services, and grant programs for municipalities/counties without gaming facilities, among others.
• Authorizes the Governor to negotiate and execute a gaming compact with the Poarch Band of Creek Indians, with potential revenue-sharing and federal review under 25 U.S.C. § 2710.
• Establishes the Alabama Gaming Commission with enforcement powers, rulemaking authority, licensing oversight, and coordination with law enforcement; sets framework for penalties and compliance.
• Requires a statewide special session to enact implementing laws and includes anti-corruption provisions restricting political contributions by gaming interests.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments