HB501 Summary

• Proposes a constitutional amendment to Section 65 of the Alabama Constitution to authorize an official state lottery called the Alabama Education Lottery, repealing the current prohibition on lotteries and gift enterprises.

• Creates the Alabama Education Lottery Commission consisting of nine members appointed by the Governor, legislative leaders, Lieutenant Governor, and Director of the Alabama Tourism Department to regulate and supervise lottery games.

• Lottery games are limited to large-scale intrastate, multistate, or multi-sovereign games (such as Pick-3, Pick-4, Mega Millions, Powerball, or instant scratch-offs) and explicitly excludes video lottery terminals and electronic bingo.

• Requires lottery proceeds be deposited into the Alabama Education Lottery Trust Fund, with funds appropriated only after reaching $250,000,000 for scholarships, bonuses to retired educators, agricultural education program fees, and problem gaming programs.

• Amendment requires approval by a majority of voters at the November 2022 General Election and takes effect upon ratification.