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Lottery in Alabama
Alabama has long been one of the few states that do not allow lotteries. However, this could soon change. In April 2021, Alabama state senators passed a constitutional amendment, along with three companion bills. However, it failed to pass in the Alabama House of Representatives.
Alabama prohibits gambling in the state constitutions. Religious groups in this conservative states have for years blocked efforts to legalize casinos or adopt lotteries.
The Failed Constitutional Ammendments
The constitutional amendments (SB319) would have allowed a state lottery that only lets people buy tickets in person or online and casino-style gambling.
Senators passed the constitutional amendment 23-9 in April 2021. But the bill failed to pass in the Alabama House of Representatives. If it had cleared this hurdle, it would have gone to a public vote.
Now, lawmakers will make another bid next year to legalize gambling in Alabama. The legislation could produce up to $710 million of revenue annually for the state, according to a report by the Governor’s Study Group on Gambling. The new law would also control betting on gambling activity already permitted in the state.
The plan oultines six gaming operations – Jefferson County, Mobile County, Macon County, Greene County, Houston County, and Jackson or DeKalb counties. It also sets up a gaming commission and addresses the Poarch Band of Creek Indians (a federally recognized Native American tribe in Alabama).
Companion bills
The Alabama State Senate adopted three other companion bills: SB309, SB310, and SB311.
The first bill, SB309, outlines the duties of the Alabama Lottery Corporation and establishes a lottery trust fund. It states that revenue earned from the lottery would fund college scholarships, the protocol for unclaimed lottery winnings, and which retailers could sell lottery tickets.
SB310 lays out the plans for the Alabama Gaming Commission. The commission would regulate charitable bingo and raffles, sports wagering, and casino-style games. Also, the governing body would decide the distribution of gaming proceeds deposited into the Gaming Trust Fund.
The third and final companion bill, SB311, prohibits specific campaign contributions and would address any potential criminal activity involved with gambling.
What Would the lottery Games Include?
The Alabama Education Lottery could include intrastate games, multi-state games, and instant games. Some of the multi-state games mentioned in the legislation are Pick-3, Pick-4, Mega Millions, and Powerball. The games would only be available to players aged 21 or over.
What Would the Revenue Fund?
Firstly, ticket sales would cover the cost of prizes and administrative expenses. Initially, the remaining revenue would repay $184 million transferred from the Alabama Trust Fund to prop up the state budget in 2013, 2014, and 2015.
After clearing this debt, half of the lottery revenue would go to the state General Fund, which helps support the operating budgets of Medicaid, prisons, state law enforcement, courts, and public institutions. The other half of the revenue would be kept in a reserve fund to cover any unforeseen expenditures.
Where Would People Play the Lottery in Alabama?
There would be a statewide network of lottery retailers, who would receive a 6% commission on gross ticket sales.
Frequently Asked Questions
Why Do US States Hold Lotteries?
Most US states hold an official lottery to raise money for their general fund. This is the governmental budget that finances all the services necessary for its citizens, such as education, policing, health services, etc.
What are state lottery games?
State lotteries usually come in two formats: a random number draw for which players choose a winning line of numbers and instant-win scratch tickets. States that organize lotteries usually also participate in multi-state games
What’s the biggest jackpot won from a state lottery?
The biggest multi-state lottery prize was a $1.586 billion Powerball jackpot in 2016. The winnings were divided between three participants. As is the case with most lotteries, the odds of hitting the jackpot are extremely low, but winning smaller prizes (such as free tickets and $100 prizes) is much more likely.
Why are state lotteries currently Illegal in Alabama?
Along with Mississippi and Utah, Alabama's ban on a state lottery and strict gambling laws is a result of religious objections. But there have been efforts to change that in Alabama
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.
