HB72 Summary

• Proposes a constitutional amendment to Section 65 of the Alabama Constitution to authorize an Alabama Lottery, repealing the existing prohibition on lotteries and gift enterprises.

• Establishes the Alabama Lottery Corporation as an independent municipal corporation and political subdivision to administer lottery games including draw lotteries, Powerball, Mega Millions, and scratch-offs, but prohibits casinos and games using playing cards, dice, slot machines, or live dealers.

• Creates the Alabama Lottery Commission with five members appointed by the Governor (2), Lieutenant Governor (1), Senate President Pro Tempore (1), and House Speaker (1) to regulate and supervise the corporation; members must be state residents, U.S. citizens, and cannot have felony convictions, hold political office, or have financial interests in licensed facilities.

• Establishes the Lottery Trust Fund to receive net lottery revenues after operational expenses and prize payments, with monthly distributions of 25% for college scholarships, 20% for education (Legislature-determined), 15% for Medicaid expansion, 20% for community service grants, and 20% for state general fund (Legislature-determined).

• Requires lottery tickets to be sold only to persons 18 years or older, subjects prizes to Alabama state income tax, and mandates the Legislature pass enabling legislation to implement the amendment.