HB558 Summary

• Proposes constitutional amendment to establish an Alabama Lottery and Alabama Lottery Corporation, creating fair and regulated state lottery to generate revenue for the State General Fund and Education Trust Fund in equal amounts.

• Authorizes gaming at the four existing Alabama racetracks (Mobile County, Macon County, Birmingham in Jefferson County, and Greene County) where pari-mutuel wagering is currently legal, limited to one location per racetrack approved by the commission.

• Levies a 13 percent state gross receipts tax on gaming revenue (plus 1 percent additional tax on owned equipment), 1 percent local gross receipts tax on gaming revenue, and 4 percent tax on covered game vendors, with proceeds split equally between State General Fund and Education Trust Fund.

• Creates the Alabama Lottery and Gaming Commission with five members appointed by the Governor, Attorney General, Lieutenant Governor, Speaker of the House, and President Pro Tempore of the Senate to regulate and supervise the lottery and gaming operations.

• Requires the Legislature to meet in a special session within 30 days to enact implementing legislation and authorizes the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians; election on the amendment scheduled for September 15, 2015.