HB278 Summary

• Proposes a constitutional amendment to authorize regulated gaming at four existing Alabama racetracks with pari-mutuel wagering and one facility licensed by a county commission, replacing the current lottery and gift enterprise prohibition in Section 65 of the Alabama Constitution.

• Establishes a 13% state gross receipts tax on gaming revenue plus 1% additional tax on owned gaming equipment, a 1% local gross receipts tax distributed to counties and municipalities, and a 4% tax on gaming equipment vendors.

• Creates the five-member Alabama Gaming Commission appointed by state officials to implement, regulate, and administer covered games (Class III gaming as defined in federal law), with initial licenses valid for 20 years and automatic renewal every five years thereafter.

• Authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians for gaming operations at three existing tribal gaming locations and requires the Legislature to meet in extraordinary session within 30 days to enact implementing legislation.

• Restricts gaming participation to persons age 21 and older, prohibits gaming operators and their owners from making campaign contributions to elected officials or legislative candidates, and preserves charitable bingo operations limited to paper sheets or cards.