Senate President Del Marsh introduced bills to create an Alabama state lottery, but those bills came to naught.
Alabama State Senator Paul Sanford introduced a bill this week which would legalize certain forms of lottery betting in Alabama. While SB326 would not legalize a state lottery drawing like many states have, it would authorize “multi-state lottery games only”.
Senate Bill 326 would open the door for the multistate lottery associations, Powerball and Mega Millions. At the moment, 44 US states, Puerto Rico, the US Virgin Islands, and Dictrict of Columbia have legal Powerball and Mega Millions lottery sales.
Alabama is one of only six states at present which does not allow multistate lottery tickets, alongside Utah, Nevada, Hawaii, Alaska, and Mississippi.
Given the fact Mississippi does not sell lottery tickets, the bill would have the added advantage of drawing revenues from Mississippi counties on the border with Alabama, as gamblers in non-lottery states often drive across the border to buy lotto tickets.
Lottery Revenues and The Education Trust Fund
Paul Sanford’s legislation would help local businesses, while contribution to the State General Fund and the Education Trust Fund. Lottery vendors throughout the state would sell Powerball and Mega Millions tickets, which would generate revenue for convenience store operators throughout the state.
This is not the first time in the past several years Alabama’s state legislature has debated lottery sales. After an attempt to create a state lottery in 1998 failed, a serious attempt was not made for another 15 years.
Eventually, President pro tempore of the Alabama Senate Del Marsh attempted to legalize a state lottery, but after several attempts failed from 2014 to 2016, the issue seemed to fall by the wayside.
Powerball and Mega Millions Lotteries
Sen. Paul Sanford’s bill is less ambitious than the ones backed by Del Marsh. Previous attempts tried to legalize a state lottery drawing regulated by a lottery commission, which would get the Alabama state government directly involved in the gambling industry. The current legislation would forego a state lottery and scratchcards in lieu of simply joining the multistate lottery associations, which requires less state involvement.
SB326 would require a constitutional amendment, as all gambling-related Alabama laws require. That means SB326 would require a statewide referendum on lotto gambling. If the bill passed in the Alabama Senate and the Alabama House of Representatives, it would become a ballot initiative on the 2018 midterm election’s statewide ballot.
If passed, 75% of lottery revenues (after expenses) would go to the State General Fund and 25% of revenues would go to the Education Trust Fund.
Fantasy Contests Act
Senator Sanford introduced a second bill this week, SB325 or the “Fantasy Contests Act”, which would legalize both traditional fantasy sports and daily fantasy sports in Alabama. Fantasy sports would be exempted from Alabama gambling laws, individual fantasy players would receive protection from prosecution and consumer protections, and daily fantasy sports operators like DraftKings and FanDuel would need to register with the state.
While details on Senate Bill 325 are limited at the moment, the Fantasy Contests Act likely would follow the pattern set in other states. That would mean a gaming license for DFS sites, including licensing fees and a percentage of revenues going to the state treasury.
Allen Farley: HB452 Gun Law
The lottery and daily fantasy sports bills were overshadowed by State Rep. Allen Farley’s introduction of House Bill 425, which would pass new gun laws in Alabama. The bill excludes medical and mental health records from those students must share with local school systems, but it gives students who share such information immunity under the law for sharing such records — with the agreement that mental health and medical records would remain confidential.
HB452 also would increase penalties for carrying a gun onto a school campus. While the penalties would not be boosted, the laws would be expanded to include more offenses. At the moment, it is a Class C felony to carry a weapon onto a campus “with the intent to cause bodily harm”. Allen Farley’s law would make it a Class C felony to carry a weapon onto a campus and remove the requirement that one have the “intent to cause bodily harm”.
The likelihood that either the lottery bill or gun laws would be passed are small. Alabama lawmakers have swatted down several attempts to legalize the lottery over the years. While Paul Sanford has the right idea in focusing on a more limited bill that legalizes the most lucrative part of lottery sales, the issue never seems to get much traction in Alabama.
