SB116 - Alabama Lottery Act Summary

• Establishes the Alabama Lottery Corporation and Alabama Lottery Commission to manage state lottery operations in an entrepreneurial, business-like manner with accountability through audits, reports, and financial disclosures.

• Authorizes video lottery terminals at five licensed facilities: four existing racetracks in Jefferson, Mobile, Macon, and Greene counties, plus one location in Lowndes County.

• Allocates lottery proceeds 50% to State General Fund and 50% to Education Trust Fund; imposes state and local gross receipts taxes on gaming revenue and vendor taxes on video lottery terminal equipment.

• Distributes local gaming tax revenue with counties retaining 50%, municipalities receiving proportional shares based on population, and Class 1 or Class 2 municipalities handling their own distributions.

• Requires voter ratification of a constitutional amendment before implementation; bill becomes null and void if the amendment is not ratified by Alabama voters.