SB130 Summary

• Proposes constitutional amendment to Section 65 of Alabama Constitution to establish a state lottery and create the Alabama Lottery Corporation as an independent public body to administer lottery operations.

• Establishes a five-member Alabama Lottery Commission appointed by the Governor (2 members), Lieutenant Governor (1), President Pro Tempore of Senate (1), and Speaker of House (1) to regulate and supervise the lottery corporation.

• Authorizes video lottery terminals exclusively at five licensed facilities: four existing racetracks in Jefferson, Mobile, Macon, and Greene counties, plus one location in Lowndes County to be selected by the Lottery Commission.

• Imposes state gaming gross revenue tax of 22 percent on video lottery revenue, additional 1 percent tax on owned terminals, local tax of 2 percent, and video lottery terminal vendor tax of 4 percent on gross gaming revenue.

• Creates Lottery Trust Fund to hold net revenues after operating expenses and prize payouts; all lottery prizes subject to Alabama state income tax; prohibits use of General Fund or Education Trust Fund for lottery expenses.

• Prohibits casinos, card games, dice, dominos, slot machines, roulette wheels, and live dealer games; allows draw lotteries, instant winners, Keno, iLottery, and interstate games like Powerball and Mega Millions.

• Establishes $100,000 ten-year licensing fee for each licensed facility; requires voter approval on March 3, 2020.