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HB448 INTRODUCED
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HB448
9J5T3PB-1
By Representative Ensler (Constitutional Amendment)
RFD: Economic Development and Tourism
First Read: 12-Feb-26
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9J5T3PB-1 02/10/2026 CMH (L)bm 2026-299
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First Read: 12-Feb-26
SYNOPSIS:
Under Section 65 of the Constitution of Alabama
of 2022, lotteries and gift enterprises are prohibited.
This bill would propose an amendment to the
Constitution of Alabama of 2022 to authorize the
Legislature to establish an official state lottery under
the supervision and control of a public lottery
corporation. The lottery would be allowed to consist of
draw-based and instant games, would be limited to paper,
plastic, or cardboard lottery tickets, would prohibit
video lottery terminals, and would include in-state and
multi-state lottery games.
This bill would also require the Governor to
negotiate a compact with the Poarch Band of Creek
Indians as contemplated under the federal Indian Gaming
Regulatory Act.
A BILL
TO BE ENTITLED
AN ACT
Relating to lotteries and gift enterprises; to propose
an amendment to the Constitution of Alabama of 2022, to repeal
and reenact Section 65 of the Constitution of Alabama of 2022,
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and reenact Section 65 of the Constitution of Alabama of 2022,
and to add Sections 65.01 and 65.02 to the Constitution of
Alabama of 2022, to establish an official State Lottery; to
establish a public corporation to administer the lottery; to
provide for the distribution of lottery revenues through
independent supplemental appropriations; and to require the
Governor to negotiate a compact with the Poarch Band of Creek
Indians under certain conditions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The following amendment to the Constitution
of Alabama of 2022, is proposed:
PROPOSED AMENDMENT
Part 1. Section 65 of the Constitution of Alabama of
2022, is repealed and in lieu thereof the following language
shall be adopted as Section 65, Section 65.01, and Section
65.02 of the Constitution of Alabama of 2022:
Section 65
(a) Except as expressly provided in this constitution,
the Legislature shall have no power to authorize any form of
gambling activity for any purpose and shall pass laws to
prohibit any unlawful gambling activity and unlawful
gambling-related activity.
(b) This section, Section 65.01, and Section 65.02 of
the constitution shall be further implemented by act of the
Legislature enacted during the 2026 Regular Session. It is the
intent of the Legislature that any such legislative act be
read in pari materia with these constitutional provisions.
Section 65.01
(a) The Legislature, by general law, may provide for
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(a) The Legislature, by general law, may provide for
the establishment and regulation of an official State Lottery
as follows:
(1) The lottery may consist of draw-based and instant
win lottery games.
(2) The lottery may use only tickets made of cardboard,
paper, plastic, or some functionally similar material unless
otherwise required to participate in a multi-jurisdiction
lottery.
(3) The lottery may not use video lottery terminals.
(4) The lottery may participate in a multi-jurisdiction
lottery.
(b) The State Lottery shall be operated and regulated
on behalf of the state by a public corporation as an
instrumentality of the state. The Legislature may provide by
law for the establishment, operation, and governance of the
corporation, including appointments to the governing body of
the corporation by officers of the Legislature, in a manner
without regard to Article III of this Constitution.
(c) The Legislature may provide for some portion of the
proceeds from the lottery to be used to pay the operating
expenses of the lottery, including all prizes, without any
appropriation required by law. The Legislature shall use funds
within the Education Trust Fund to pay for the initial
start-up operating expenses of the state lottery and the
public corporation described in this section, provided the
public corporation shall pay back to the Education Trust Fund
the start-up expenses of the lottery and of the corporation
from the initial revenues of the lottery.
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from the initial revenues of the lottery.
(d) There is established in the State Treasury the
Alabama Lottery Trust Fund. Net proceeds generated from the
lottery shall be deposited at least annually into the fund and
shall be separately appropriated by the Legislature through an
annual independent supplemental appropriation bill.
Section 65.02
(a) The Governor shall negotiate and may execute a
Tribal-State gaming compact with the Poarch Band of Creek
Indians, as contemplated under the Indian Gaming Regulatory
Act, 25 U.S.C. § 2701 et seq., which shall authorize any and
all activities allowable under that act, including Class III
games in any form; provided, the Governor may only grant
authority for activity to be conducted in person and on lands
held in trust by the United States for the benefit of the
Poarch Band of Creek Indians prior to February 6, 2024.
(b) Following execution of the compact, the Governor
shall file the compact with the Secretary of State and the
commission. The Secretary of State shall forward an executed
copy of the compact to the Secretary of the Interior for
review and approval in accordance with, and to the extent
required by, federal law.
(c) The state's immunity to suit in federal court under
the Eleventh Amendment to the United States Constitution is
expressly waived for the sole purpose of resolving disputes
arising under the terms of any compact negotiated pursuant to
this section. The waiver of the state's immunity under this
section is contingent upon an equivalent submission in the
compact by the Poarch Band of Creek Indians to the
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compact by the Poarch Band of Creek Indians to the
jurisdiction of federal court.
(d) It is the intent of this section to only regulate
the terms of a Tribal-State gaming compact for activities
conducted on trust lands. Nothing in this section shall be
deemed to prohibit the Poarch Band of Creek Indians, or a
wholly owned subsidiary thereof, from conducting any
commercial activity off trust lands as a private commercial
actor, subject to this constitution and general law.
Upon ratification of this constitutional amendment, the
Code Commissioner shall number and place this amendment as
appropriate in the constitution omitting this instructional
paragraph and may make the following nonsubstantive revisions:
change capitalization, hierarchy, spelling, and punctuation
for purposes of style and uniformity; correct manifest
grammatical, clerical, and typographical errors; revise
internal or external citations and cross-references; harmonize
language; and translate effective dates.
END OF PROPOSED AMENDMENT
Section 2. An election upon the proposed amendment
shall be held in accordance with Sections 284 and 285 of the
Constitution of Alabama of 2022, and the election laws of this
state. The appropriate election official shall assign a ballot
number for the proposed constitutional amendment on the
election ballot and shall set forth the following description
of the substance or subject matter of the proposed
constitutional amendment:
"Proposing an amendment to the Constitution of Alabama
of 2022, to: (1) establish an official Alabama State Lottery;
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of 2022, to: (1) establish an official Alabama State Lottery;
(2) provide for the distribution of all lottery revenues; and
(3) require the Governor to negotiate a compact with the
Poarch Band of Creek Indians pursuant to the federal Indian
Gaming Regulatory Act.
Proposed by Act ____. "
This description shall be followed by the following
language:
"Yes( ) No( ). "
Section 3. The proposed amendment shall become valid as
a part of the Constitution of Alabama of 2022, when approved
by a majority of the qualified electors voting thereon.
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