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HB449 INTRODUCED
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HB449
I3JLVWW-1
By Representative Ensler
RFD: Economic Development and Tourism
First Read: 12-Feb-26
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I3JLVWW-1 02/11/2026 CMH (L) bm 2026-300
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First Read: 12-Feb-26
SYNOPSIS:
This bill would implement the constitutional
amendment proposed in House Bill xxx of the 2026 Regular
Session to authorize a state lottery by creating the
Alabama Lottery Corporation as a public corporation
tasked with operating and managing the lottery.
This bill would establish the Alabama Lottery
Trust Fund, which would be used by the Legislature each
year to provide supplemental appropriations for only the
following purposes: (i) to address problem gambling
additions and treatment; (ii) to establish a
postsecondary scholarship program for public two-year
community and technical colleges and four-year public
institutions of higher education; (iii) to provide
cost-of-living raises and other benefits for active
public education employees and bonuses for retired
education employees; (iv) to award grants to hospitals to
assist in their operation and prevent their closure; and
(v) to provide tax credits to eligible residents of the
state as determined by the Legislature.
This bill would establish the Alabama Lottery
Corporation Board of Directors to supervise the state
lottery and would provide for the appointment and duties
of the board.
This bill would provide that the lottery
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This bill would provide that the lottery
corporation would be under the day-to-day supervision of
a chief executive officer who would be the president of
the corporation, and would provide for his or her
appointment and duties.
This bill would impose lottery advertising
restrictions on the corporation to limit advertisements
with a strong appeal to minors.
This bill would provide criminal penalties for
sales of lottery tickets to minors, underage purchase of
lottery tickets, making of counterfeit lottery tickets,
skimming of lottery proceeds, and theft of a lottery
prize by fraud.
This bill would require lottery tickets to be
printed onto paper, plastic, or other tangible material,
with exceptions.
This bill would amend various gambling-related
offenses to increase the penalties and provide heightened
criminal penalties for a second or subsequent conviction
under the gambling laws of the state.
This bill would also provide a procedure for
owners and operators of business establishments to be
held criminally liable for allowing unlawful gambling
activities to occur on the business premises.
A BILL
TO BE ENTITLED
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TO BE ENTITLED
AN ACT
Relating to lottery activities; to add Chapter 30 to
Title 41, Code of Alabama 1975, to implement the constitutional
amendment proposed in House Bill xxx of the 2026 Regular
Session, to create the Alabama Lottery to be administered by the
Alabama Lottery Corporation and to provide for the creation and
operation of the corporation; to provide for the governance of
the corporation by a board of directors and provide for the
appointment and duties of the board; to provide for the
appointment of a president of the corporation and provide for
the powers and duties thereof; to establish the Alabama Lottery
Trust Fund and provide for the distribution of funds therein
through an independent supplemental appropriation bill; to
establish certain advertising restrictions related to the
lottery; to amend Sections 13A-12-20, 13A-12-21, 13A-12-22,
13A-12-23, 13A-12-24, 13A-12-25, 13A-12-26, 13A-12-27,
13A-12-28, and 13A-12-30, Code of Alabama 1975, to update and
increase criminal penalties for various unlawful gambling
activities and provide heightened criminal penalties for
subsequent violations; to add Section 13A-12-32 to the Code of
Alabama 1975, to provide a procedure to establish criminal
liability for certain owners and operators where certain
unlawful gambling activities occur; to repeal Division 3 of
Article 2 of Chapter 12 of Title 13A, Code of Alabama 1975,
relating to transportation of lottery paraphernalia; to make
nonsubstantive technical revisions to update the existing code
language to current style; and to provide for the repeal of the
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language to current style; and to provide for the repeal of the
act under certain specified conditions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Chapter 30 is added to Title 41, Code of
Alabama 1975, to read as follows:
Chapter 30. Alabama Lottery Corporation.
§41-30-1. Accountability of the Alabama Lottery
Corporation.
The Legislature recognizes that the operations of a state
lottery are unique activities for state government and that a
corporate structure will best enable the lottery to be managed
in an entrepreneurial and business-like manner. It is the intent
of the Legislature that the Alabama Lottery Corporation shall be
accountable to the Governor, the Legislature, and the people of
the State of Alabama through a system of audits, reports, and
disclosures as required by this chapter.
§41-30-2. Definitions.
As used in this chapter, the following words have the
following meanings:
(1) BOARD. The Alabama Lottery Corporation Board of
Directors.
(2) CORPORATION. The Alabama Lottery Corporation.
(3) FISCAL YEAR. The fiscal year used by the State of
Alabama government.
(4) INSTANT TICKET. A lottery game in which a player
scratches or otherwise removes anything overlaying words or
symbols to determine if the player has won, as indicated by the
symbols and words that are displayed.
(5) LOTTERY or LOTTERY GAME. A game of chance that
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(5) LOTTERY or LOTTERY GAME. A game of chance that
generally involves the drawing or revealing of numbers at random
for a prize. The term includes, but is not limited to, a state
lottery, instant win game, a multi-jurisdiction lottery, or
other draw-based or instant win game that is approved and
conducted through the Alabama Lottery Corporation. The term does
not include video lottery terminals, electronic games of chance,
sports wagering, bingo, electronic bingo, or any game similar to
bingo, including pull-tabs, punch boards, tip jars, or instant
bingo, whether or not played with an electronic, computer, or
other technological aid. The term does not include any other
form of gambling activity.
(6) LOTTERY RETAILER. Any person with whom the
corporation has contracted to sell lottery tickets to the
public.
(7) LOTTERY TICKET. Any tangible evidence of proof of
participation in, or a right, privilege, or possibility of
becoming a winner in, a lottery game.
(8) MAJOR PROCUREMENT. Any item, product, or service in
the amount of one million dollars ($1,000,000) or more,
including, but not limited to, major advertising contracts,
annuity contracts, prizes, products, and services unique to the
state lottery.
(9) NET PROCEEDS. Gross lottery revenues, minus amounts
paid as prizes and expenses, of the operation of the lottery.
(10) PERSON. Any individual, corporation, partnership,
unincorporated association, or other legal entity.
(11) PRESIDENT. The president and chief executive officer
of the Alabama Lottery Corporation.
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of the Alabama Lottery Corporation.
(12) SECURITY. The protection of information that would
provide an unfair advantage to any individual involved in the
operation of the lottery; the protection and preservation of the
integrity of lottery games and operations; and the measures
taken to prevent crimes against the corporation and its
retailers.
(13) VENDOR. Any person who has entered into a contract
with the corporation.
§41-30-3. Administration of the state lottery.
(a) There is created a state lottery. The lottery shall
be administered by a corporation to be known as the Alabama
Lottery Corporation. The corporation shall be managed in a
manner that enables the people of the State of Alabama to
benefit from its profits and to ensure the integrity of the
lottery.
(b) The existence of the corporation shall begin upon the
appointment of all seven members of the board.
(c) The corporation shall be domiciled in the State of
Alabama. The exclusive venue for any action or matter against
the corporation arising out of or in connection with the
issuance, nonissuance, delivery, or failure to deliver a lottery
ticket or payment or nonpayment of a lottery prize in the county
in which its corporate headquarters is located, and the circuit
court for that county shall have exclusive jurisdiction over the
action or matter. For purposes of the assessment of court costs
only, the corporation shall be a private corporation.
§41-30-4. Administration of the affairs of the Alabama
Lottery Corporation.
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Lottery Corporation.
(a)(1) The affairs of the corporation shall be
administered by the Alabama Lottery Corporation Board of
Directors. The board shall be composed of seven voting members
appointed as follows:
a. One member appointed by the Governor.
b. One member appointed by the President Pro Tempore of
the Senate.
c. One member appointed by the Speaker of the House of
Representatives.
d. One member appointed by Majority Leader of the Senate.
e. One member appointed by the Majority Leader of the
House of Representatives.
f. One member appointed by the Minority Leader of the
Senate.
g. One member appointed by the Minority Leader of the
House of Representatives.
(2) All appointments shall be subject to confirmation by
the Senate.
(3) In addition to the voting members, the Commissioner
of Revenue and the State Treasurer shall attend all meetings of
the board in a nonvoting, ex officio capacity.
(b) The voting members of the board shall be residents of
the State of Alabama and may not be serving as a public
official, as that term is defined in Section 36-25-1. The
Governor, when making appointments to the board, shall
coordinate the appointments so that diversity of gender, race,
and geographical area is reflective of the makeup of the state.
(c) The initial appointees of the board shall serve
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(c) The initial appointees of the board shall serve
staggered terms as follows: (i) One term shall expire after one
year; (ii) one term shall expire after two years; (iii) one term
shall expire after three years; (iv) one term shall expire after
four years; and (v) one term shall expire after five years.
After the expiration of the initial terms, members of the board
shall serve for terms of five years.
(d) A member may serve beyond the end of his or her
respective term until a successor has been appointed and
confirmed by the Senate. No member may serve more than two
consecutive five-year terms. Members serve at the pleasure of
the Governor. The board shall elect a chair from among its
voting members. As near as practical, the board chair shall
serve a term of two years.
(e) Appointed members of the board shall be entitled to
per diem compensation paid by the corporation and shall be
reimbursed by the corporation for necessary travel and other
reasonable expenses incurred in the performance of their
official duties. Members of the board shall not have any direct
or indirect interest in an undertaking that puts their personal
interest in conflict with that of the corporation, including,
but not limited to, an interest in a major procurement contract
or a participating retailer.
(f) The board, upon the initial call of the Governor and
the chair thereafter, shall meet each month for the first 18
months following the effective date of this act and at such
other times as the chair may determine. Five voting members of
the board shall constitute a quorum. The board shall also meet
upon the call of five or more of the voting members of the
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upon the call of five or more of the voting members of the
board. The board shall keep accurate and complete records of all
its meetings.
(g) Meetings of the board shall be subject to the Alabama
Open Meetings Act.
§41-30-5. Inspection of records.
All records of the corporation shall be deemed public
records and subject to public inspection pursuant to the Article
3 of Chapter 12 of Title 36, unless any of the following apply:
(1) The record relates to or was provided by a
confidential source or informant and relates to lottery
security, applicant, vendor, or retailer qualifications or
conduct.
(2) The record involves a trade secret of the corporation
or of a vendor.
(3) The record pertains to the internal security
operations of the lottery or its lottery retailers or the record
is of such a sensitive nature that its disclosure would endanger
the security of the lottery or its lottery retailers, including,
but not limited to, records containing security procedures,
investigative techniques, or internal security information.
(4) The record is covered by another exemption under
federal or state law.
§41-30-6. Appointment of president of the Alabama Lottery
Corporation.
(a)(1) From time to time, the board may appoint an
individual to serve as president of the corporation. The
president shall serve at the pleasure of the board.
(2) The Governor may approve or disapprove the
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(2) The Governor may approve or disapprove the
appointment within 30 days of notice of the appointment. If the
Governor does not disapprove the appointment as prescribed in
this subsection, the appointment shall be deemed approved.
(b) The president shall manage the daily affairs of the
corporation and shall have the powers and duties specified by
the board and this chapter and any rules adopted thereunder.
(c) The president may employ personnel as he or she deems
necessary. All personnel shall serve at the will and pleasure of
the president, unless otherwise specified by the president.
(d) Following his or her appointment and during his or
her entire employment by the board, the president shall reside
in this state.
§41-30-7. Duties of the board.
The board shall have the following powers and duties:
(1) Approve, disapprove, amend, or modify the budget
recommended by the president for the operation of the
corporation.
(2) Adopt rules as necessary to carry out and implement
the operations of the corporation, the conduct of lottery games
in general, and any other matters necessary or desirable for the
efficient and effective operation of the lottery or convenience
of the public.
(3) Establish the salary of the president.
(4) Acquire and hold, in its own name, real property and
improvements thereon by purchase, gift, lease, lease with the
option to purchase, or other lawful means, except eminent
domain, to carry out its duties; and transfer, sell, or convey
real property and any improvements thereon. Any obligations
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real property and any improvements thereon. Any obligations
created in connection with the purchase or improvement of real
property shall not create debts, obligations, or liabilities of
the State of Alabama.
(5) Provide for the conduct of specific lottery games and
operations, including, but not limited to, the following:
a. The types of lottery games that may be conducted.
b. The sale price of tickets.
c. The number and amount of prizes.
d. The methods that shall be used in selling tickets for
lottery games.
e. The methods and location of selecting or validating
winning tickets.
f. The manner of payment of prizes.
g. The frequency of games and drawings.
h. Any other matters necessary to carry out this act and
necessary for the efficient and effective operation of the
lottery.
(6) Conduct hearings upon receiving a complaint alleging
a violation of this chapter or rules adopted by the corporation
or as otherwise provided by this chapter.
(7) Periodically review the performance of the
corporation and advise the president and make recommendations
regarding operations of the corporation and identify potential
statutory improvements to this chapter, the rules of the
corporation, and the management of the corporation.
(8) Request from the corporation any information the
board determines to be relevant to its duties.
(9) Conduct and administer lottery games to result in
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(9) Conduct and administer lottery games to result in
maximization of revenues to the State of Alabama. The
corporation, its employees, and the members of the board shall
provide for the efficient and effective operation of lottery
games, ensure the integrity of the lottery, and maintain the
dignity of the state and the general welfare of its residents.
(10) Supervise and administer the lottery in accordance
with this chapter and the rules governing this chapter.
(11) Submit quarterly and annual reports to the Governor,
the Lieutenant Governor, the Speaker of the House of
Representatives, the State Treasurer, the State Auditor, the
Joint Legislative Committee on Performance Evaluation and
Expenditure Review, the Director of Finance, and the
Commissioner of Revenue containing financial information and
projections which include, but are not limited to, disclosure of
gross revenues, expenses, and net proceeds for the period.
(12) Establish a system of continuous internal audits.
(13) Maintain weekly or more frequent records of lottery
transactions, including distribution of tickets to lottery
retailers, revenues received, claims for prizes, prizes paid,
and all other financial transactions of the corporation.
(14) Establish a code of ethics for officers and
employees of the corporation to carry out the standards of
conduct established by this chapter.
(15) Establish guidelines for the disposal of lottery
property if the corporation is dissolved.
(16) Sue and be sued in its corporate name.
(17) Adopt a corporate seal and a symbol.
(18) Hold patents, copyrights, trademarks, and service
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(18) Hold patents, copyrights, trademarks, and service
marks and enforce its rights with respect thereto.
(19) Register to do business in the State of Alabama and
appoint agents upon which process may be served.
(20) Enter into written agreements with one or more other
states or sovereigns for the operation, marketing, and promotion
of a joint lottery or joint-lottery games.
(21) Make, solicit, and request proposals and offers, and
execute and effectuate any and all agreements or contracts,
including, but not limited to:
a. Contracts that provide for the placement of commercial
advertising on tickets.
b. Contracts for the purchase or lease of real property
as are necessary for the operation and promotion of the lottery.
c. Contracts or agreements necessary for the
implementation, operation, and promotion of the lottery and this
chapter.
(22) Adopt bylaws and rules to administer this chapter.
§41-30-8. Duties and obligations of the president.
(a) The president, as chief executive officer of the
corporation, shall do all of the following:
(1) Direct and supervise all administrative and technical
activities in accordance with this chapter and the rules
governing this chapter.
(2) Supervise and administer the operation of the
corporation, the lottery, and its games.
(3) Employ, manage, and direct the personnel of the
corporation and its facilities and services as necessary to
implement this chapter.
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implement this chapter.
(4) Enter into contracts with lottery retailers.
(5) Make available for inspection by the board or any
member of the board, upon request, all books, records, files,
and other information and documents of his or her office.
(6) Advise and make recommendations to the board for the
adoption of rules or other actions to improve the operation and
administration of the lottery and the corporation.
(7) Enter into any contract pursuant to this chapter with
any person for the promotion and operation of the lottery or for
the performance of any of the functions as provided in this
chapter or rule adopted under this chapter, unless the contract
constitutes a major procurement. A major procurement shall
require approval from the board.
(8) Attend meetings of the board or appoint a designee to
attend on his or her behalf.
(9) Not later than 30 days before the beginning of the
corporation's fiscal year, submit the proposed annual budget of
the corporation and projected net proceeds to the board for
review and approval.
(10) Subject to the approval of the board, amend or
modify the budget at any time in any manner deemed necessary for
the proper operation of the corporation.
(11) Require bond from employees of the corporation as he
or she deems necessary; provided, the president shall require
bond, in an amount determined by the board, from employees with
access to corporate funds or lottery funds.
(12) For good cause, suspend, revoke, or refuse to renew
any contract entered into in accordance with this chapter or
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any contract entered into in accordance with this chapter or
rule adopted under this chapter.
(13) Upon specific or general approval of the board,
conduct hearings and administer oaths to persons for the purpose
of assuring the security or integrity of lottery operations, or
to determine the qualifications or compliance by vendors and
lottery retailers.
(14) Upon receiving specific or general approval of the
board, enter into contracts with consultants and technical
assistants as may be required to implement and administer this
chapter.
(15) By agreement, secure information, goods, and
services as necessary from any department, agency, or unit of
the federal, state, or local government. To the extent allowed
by federal or state law or rule, the president may compensate
the department, agency, or unit of government for its
information, goods, and services.
(16) Supervise ticket validation and lottery drawings.
(17) For just cause and subject to the terms of a vendor
contract, inspect the facilities of any vendor in order to
determine the integrity of the vendor's product and in order to
determine whether the vendor is in compliance with its contract.
(18) Report any suspected violations of this chapter to
the local district attorney or the Attorney General.
(19) Upon request, provide assistance to the local
district attorney and the Attorney General during an
investigation into a violation of this chapter.
(b) The president and the board shall conduct an ongoing
examination of the operation and administration of lotteries in
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examination of the operation and administration of lotteries in
other states and countries, including reviewing available
literature on the subject; federal laws and regulations which
may affect the operation of the lottery; and the reaction of
residents of this state to existing or proposed features of
lottery games with a view toward implementing improvements that
will tend to serve the purposes of this chapter.
(c) The president may also establish one or more market
or equipment research centers for lottery products and may
establish lottery player information centers.
(d) There shall be no liability on the part of, and no
cause of action shall arise against, the corporation or its
governing board, staff, agents, vendors, or employees, arising
out of or in connection with their duties and obligations as
provided for under this chapter.
§41-30-9. Procurement of goods and services.
(a) The corporation may purchase, lease, or
lease-purchase any goods or services as necessary for
implementing and administering this chapter.
(b) The procurement of any supplies or services by the
corporation shall be solely governed by rules pursuant to the
Alabama Administrative Procedure Act. The rules adopted shall be
consistent with any applicable requirements of the Constitution
of Alabama of 2022, and shall be established in accordance with
the underlying purposes and policies of promoting responsible
and efficient use of public funds dedicated and appropriated to
agencies for their use, and promoting fairness, competition,
transparency, integrity, and value in the procurement process.
In no case may a rule be adopted in conflict with the laws of
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In no case may a rule be adopted in conflict with the laws of
this state regarding the public disclosure of the use of public
funds and the transparency of public expenditures, or that is
otherwise in conflict with state law regarding public records
and public access to those records.
(c) The corporation may make procurements necessary for
the function of the lottery, including procurements for the
design of lottery games, the distribution of lottery tickets to
lottery retailers, the supply of goods and services, and
advertising. In all procurement decisions, the corporation shall
take into account the particularly sensitive nature of the state
lottery and shall promote and ensure security, honesty,
fairness, and integrity in the operation and administration of
the lottery and the objectives of raising net proceeds for the
benefit of the state.
§41-30-10. Intelligence sharing and restricted use
agreements.
(a) The corporation may enter into intelligence sharing,
reciprocal use, or restricted use agreements with the federal
government, law enforcement agencies, lottery regulation
agencies, and gambling enforcement agencies of other
jurisdictions that provide for and regulate the use of
information provided and received pursuant to the agreement.
(b) Records, documents, and information in the possession
of the corporation received pursuant to an intelligence sharing,
reciprocal use, or restricted use agreement entered into by the
corporation pursuant to subsection (a) shall be exempt from
Article 3 of Chapter 12 of Title 36. The corporation may not
release the record, document, or other information without the
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release the record, document, or other information without the
written permission of the person or agency providing the record
or information to the corporation.
§41-30-11. Lottery advertising restrictions.
(a) The corporation may enter into one or more commercial
advertising contracts with a person for the purpose of promoting
the lottery and the sale of lottery tickets, subject to the
requirements of this section.
(b) No commercial advertising conducted for the purpose
of promoting the lottery or the sale of lottery tickets may have
a strong appeal to individuals under 18 years of age.
(c) The board shall adopt rules to govern any advertising
conducted pursuant to this chapter. At a minimum, the rules
shall establish restrictions and requirements for advertising,
including signage, and may include limiting the media or forums
where advertising may occur.
(d) Notwithstanding the foregoing, the corporation may
advertise as necessary to participate in a multi-jurisdiction
lottery.
§41-30-12. Criminal background checks.
(a) The Alabama State Bureau of Investigations shall
perform a criminal background check on potential vendors,
including potential lottery retailers and potential employees of
the corporation.
(b) The required criminal background check shall be
conducted prior to the finalization of any contract with a
potential vendor or prior to the employment of any potential
employee.
(c) The corporation shall reimburse the Alabama State
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(c) The corporation shall reimburse the Alabama State
Bureau of Investigations for the actual costs of conducting the
criminal background investigations.
§41-30-13. Claiming a prize.
(a) The proceeds of any lottery prize of six hundred
dollars ($600) or more shall be subject to state and federal
income tax withholding laws, as applicable. To claim a lottery
prize of six hundred dollars ($600) or more, an individual
holding a winning lottery ticket must provide to the corporation
the individual's name, address, and any other information
required by rule of the Department of Revenue. The Department of
Revenue shall adopt rules governing the administration of this
subsection.
(b) The corporation shall withhold any attachments,
garnishments, or executions authorized and issued pursuant to
law if timely served upon the process agent of the corporation.
(c) The board shall adopt policies and procedures to
establish a system of verifying the validity of tickets or
shares claimed to win prizes and to effect payment of those
prizes, subject to the following conditions:
(1) No prize, portion of a prize, or right of a person to
a prize shall be assignable. Any prize, or portion thereof,
remaining unpaid at the death of a prizewinner shall be paid to
the estate of the deceased prizewinner or to the trustee of a
trust established by the deceased prizewinner if a copy of the
trust document or instrument has been filed with the
corporation, along with a notarized letter of direction from the
deceased prizewinner, and no written notice of revocation has
been received by the corporation prior to the deceased
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been received by the corporation prior to the deceased
prizewinner's death. Following a deceased prizewinner's death
and prior to any payment to a trustee, the corporation shall
obtain from the trustee and each trust beneficiary a written
agreement to indemnify and hold the corporation harmless with
respect to any claims that may be asserted against the
corporation arising from payment to or through the trust.
(2) No prize shall be paid arising from a claimed ticket
that is stolen, counterfeit, altered, fraudulent, unissued,
produced or issued in error, unreadable, not received, unclaimed
or not recorded by the corporation within the applicable
deadline, lacking in captions that conform and agree with the
play symbols as appropriate to the lottery game involved, or not
in compliance with any additional specific rules and public or
confidential validation and security tests of the corporation
appropriate to the particular lottery game involved.
(3) No particular prize in any lottery game shall be paid
more than once, and in the event of a determination by the
corporation or a court that more than one claimant is entitled
to a particular prize, the sole remedy of the claimants shall be
to award to each of them an equal share in the prize.
(4) A holder of a winning ticket from an Alabama lottery
game or from a multi-state or multi-jurisdiction lottery game
shall claim a prize within the timeframe provided for by rule of
the board. If a valid claim is not made for a prize within the
applicable period, the prize shall constitute an unclaimed prize
for purposes of this section.
(5) The corporation shall not disclose the identity of
the person holding a winning lottery ticket where the prize
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the person holding a winning lottery ticket where the prize
amount is in excess of one million dollars ($1,000,000) without
that person's written permission.
(6) No prize shall be paid upon a lottery ticket
purchased or sold in violation of this chapter or rule adopted
thereunder. A lottery ticket purchased or sold in violation of
this chapter or rule adopted thereunder shall constitute an
unclaimed prize for purposes of this section.
(d) Unclaimed prize money shall not constitute net
lottery proceeds. Unclaimed prize money shall be held in trust
by the corporation and used as provided in this section.
Annually, the corporation shall distribute a portion of
unclaimed prize money, not to exceed two hundred thousand
dollars ($200,000) each year, to the State General Fund to the
credit of the Department of Mental Health for the treatment of
compulsive gambling disorder and educational programs related to
the disorder. In addition, unclaimed prize money may be added to
the pool from which future prizes are to be awarded or used for
special prize promotions.
(e) The corporation is discharged of all liability upon
payment of a prize.
(f) No ticket shall be purchased by and no prize shall be
paid to any of the following persons:
(1) Any member of the board.
(2) Any officer or employee of the corporation.
(3) Any spouse, child, brother, sister, or parent
residing as a member of the same household in the principal
place of abode of any individual listed in this subsection.
§41-30-14. Withholding of lottery prizes of persons who
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§41-30-14. Withholding of lottery prizes of persons who
have outstanding child support arrearages or debts owed to the
state.
(a)(1) The board shall coordinate with the Department of
Human Resources to adopt rules providing for the withholding of
lottery prizes of individuals who have outstanding child support
arrearages as reported to the corporation, beginning at prize
levels to be determined by the board. The rules may require any
agency reporting current child support arrearages to the
corporation to provide information relating to the arrearages in
a manner, format, or record approved by the corporation.
(2) The corporation shall not be liable for withholding a
lottery prize based upon child support arrearage information
provided to the corporation.
(b)(1) The corporation shall withhold any lottery prize
of an individual who has had a delinquent debt claim reported by
a state agency or a political subdivision of the state. The
Department of Revenue and the corporation shall cooperate to
implement this section.
(2) The corporation shall not be liable for withholding a
lottery prize based upon a delinquent debt claim provided to it
by the Department of Revenue.
(3) The board shall adopt rules to implement this
subsection.
§41-30-15. Monies received from the sale of lottery
tickets; creation of funds.
(a) All lottery proceeds received by the corporation,
including all monies from the sale of lottery tickets and all
other sources of revenue, shall be the property of the
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other sources of revenue, shall be the property of the
corporation. The corporation shall use monies in the fund to
first pay for its reasonable operating expenses, second for the
payment of prize money, and all remaining funds shall be
transferred to the Alabama Lottery Trust Fund. The corporation
shall endeavor to maximize the amount of revenues that may be
generated for deposit into the Alabama Lottery Trust Fund.
(b) On or before the twentieth day of each month, the
corporation shall transfer from its operating accounts to the
Alabama Lottery Trust Fund the amount of all net proceeds. Upon
deposit into the Alabama Lottery Trust Fund, any monies
representing net proceeds shall become the unencumbered property
of the State of Alabama and the corporation shall have no power
to agree or undertake otherwise. The monies shall be invested by
the State Treasurer in accordance with state investment
practices.
§41-30-16. Funding of the corporation.
(a) The corporation may enter into contracts to incur
debt in its own name and enter into financing agreements with
the state, agencies, or instrumentalities of the state, or with
any commercial bank or credit provider. Any contract or
financing agreement entered into pursuant to this subsection
must be approved by the Finance Director of the Department of
Finance. Any obligations created in connection with any
contracts or financing agreements entered into pursuant to this
section shall solely and exclusively be obligations of the
corporation and shall not create debts, obligations, or
liabilities of the State of Alabama.
(b) The corporation shall be self-sustaining and
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(b) The corporation shall be self-sustaining and
self-funded. Monies in the State General Fund shall not be used
or obligated to pay the prizes of the lottery, and no claim for
the payment of an expense of the lottery or prizes of the
lottery may be made against any monies other than monies
credited to the operations accounts of the corporation.
§41-30-17. Selection and maintenance of statewide network
of lottery retailers.
(a) The corporation shall develop and maintain a
statewide network of lottery retailers that will serve the
public convenience and promote the sale of lottery tickets,
while ensuring the integrity of the lottery operations, games,
and activities.
(b) A lottery game may not be played except as authorized
by general law and rules adopted by the board. A lottery game
may not be operated through the use of a video lottery terminal
or any other mechanical, electromechanical, or other electronic
device or machine that performs all the functions of a lottery
by itself when networked with other similar devices or machines;
provided, this section shall not apply to the use of a lottery
vending machine otherwise allowed at a licensed lottery retailer
which meets any requirements established by the corporation.
(c) A lottery ticket may not be sold except by a licensed
lottery retailer in accordance with general law and rules
adopted by the board.
§41-30-18. Selection of lottery retailers.
(a) To govern the selection of lottery retailers, the
board shall adopt rules to provide a list of objective criteria
upon which the selection of lottery retailers shall be based.
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upon which the selection of lottery retailers shall be based.
The criteria shall include, but not be limited to, the following
with regard to the applicant:
(1) Financial responsibility.
(2) Location and security of place of business or
activity.
(3) Character, integrity, and reputation.
(4) Whether the applicant is current in the filing of all
applicable tax returns and the payment of all applicable taxes,
interest, and penalties owed to the state or any political
subdivision thereof, excluding items under formal appeal.
(b) No person shall be selected as a lottery retailer for
the sale of lottery tickets if the person has done any of the
following:
(1) Has been convicted of a criminal offense related to
the security or integrity of the lottery in this state or any
other jurisdiction.
(2) Has been convicted of any illegal gambling activity,
false statements, false swearing, or perjury in this state or
any other jurisdiction.
(3) Has been convicted of any felony in this state,
unless more than five years have elapsed from the date of the
individual's release from incarceration without a subsequent
conviction of a crime described in this subsection.
(4) Has been found to have violated this chapter or any
rule adopted under this chapter, unless either 10 or more years
have passed since the violation, or the president and the board
find the violation both minor and unintentional in nature.
(5) Is a vendor or an employee or agent of any vendor
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(5) Is a vendor or an employee or agent of any vendor
doing business with the corporation.
(6) Resides in the same household as an officer or board
member of the corporation.
(7) Has knowingly made a false statement of material fact
to the corporation.
(c) The board shall not consider the applicant's
political affiliation, political activities, or monetary
contributions to political organizations or candidates for any
public office.
§41-30-19. Cancellation, denial, revocation, suspension,
renewal rejection, or termination of contract with lottery
retailer.
(a) Any contract executed by the corporation with a
lottery retailer pursuant to this chapter shall specify the
reasons for which any contract may be canceled, denied, revoked,
suspended, renewal rejected, or terminated by the corporation,
including, but not limited to, the following:
(1) Violation of this chapter or a rule adopted
thereunder.
(2) Failure to accurately account for lottery tickets,
revenues, or prizes as required by this chapter and rules
adopted thereunder.
(3) Commission of any fraud, deceit, or
misrepresentation.
(4) Insufficient sale of tickets.
(5) Conduct prejudicial to public confidence in the
lottery.
(6) Filing for or being placed in bankruptcy or
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(6) Filing for or being placed in bankruptcy or
receivership.
(7) Any material change in any matter considered by the
corporation in executing the contract with the lottery retailer.
(8) Failure to make available for inspection or copying
any record upon request of the corporation.
(9) Failure to meet any of the objective criteria
established by the board pursuant to this chapter.
(b)(1) Following a public hearing on the matter, if the
president determines that the cancellation, denial, revocation,
suspension, rejection of renewal, or termination of a lottery
retailer contract is in the best interest of the lottery, the
public welfare, or the State of Alabama, the president may
cancel, deny, revoke, suspend, reject the renewal, or terminate
the contract.
(2) Notwithstanding subdivision (1), the president may
temporarily suspend any lottery retailer contract without prior
notice, pending any investigation, prosecution, and public
hearing.
§41-30-20. Treatment of lottery proceeds by lottery
retailers; insolvency.
(a)(1) All proceeds from the sale of lottery tickets
received by a lottery retailer shall be held in trust by the
lottery retailer until paid to the corporation either directly
or through the corporation's authorized collection
representative.
(2) A lottery retailer shall have a fiduciary duty to
preserve and account for lottery proceeds and shall be
personally liable for the lottery proceeds.
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personally liable for the lottery proceeds.
(3) Lottery proceeds shall include unsold instant tickets
received by a lottery retailer, cash proceeds of the sale of any
lottery products, the net amount of allowable sales commissions,
and credit for lottery prizes to winners by lottery retailers.
(4) Sales proceeds and unused instant tickets shall be
delivered to the corporation or its authorized collection
representative upon demand.
(b)(1) The board shall require each lottery retailer to
place all lottery proceeds due the corporation in a bank account
in an institution insured by the Federal Deposit Insurance
Corporation not later than the close of the next banking day
after the date of collection by the lottery retailer until the
date the proceeds are paid over to the corporation.
(2) Each lottery retailer shall establish a separate bank
account for lottery proceeds. The lottery proceeds shall be kept
separate and apart from all other funds and assets and shall not
be commingled with any other funds or assets.
(c) A lottery retailer shall receive seven percent of the
sales of lottery tickets sold by the lottery retailer.
(d) Whenever any individual who receives proceeds from
the sale of lottery tickets in the capacity of a lottery
retailer becomes insolvent, or dies insolvent, the proceeds due
the corporation from the individual or his or her estate shall
have preference over all other debts or demands.
§41-30-21. Illegal lottery devices prohibited.
(a) A lottery retailer or agent, associate, employee, or
representative of a lottery retailer may not allow any illegal
lottery device to be on the licensed premises of the lottery
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lottery device to be on the licensed premises of the lottery
retailer. For purposes of this section, an illegal lottery
device is any machine or other device that sells lottery tickets
or otherwise participates in a lottery not approved by the
corporation.
(b) The corporation may assess a fine against a lottery
retailer who violates this section, as follows:
(1) For a first offense, a fine of not less than two
hundred dollars ($200) nor more than one thousand dollars
($1000).
(2) For a subsequent offense, a fine of not less than
five hundred dollars ($500) nor more than two thousand dollars
($2,000). In addition, the corporation may suspend, revoke, or
take other disciplinary action against the lottery retailer
license of the lottery retailer.
(c)(1) Except as provided in subdivision (2), a person
who violates this section is guilty of a Class A misdemeanor.
(2) On a second or subsequent violation of this section,
a person is guilty of a Class C felony.
§41-30-22. Sale to minors prohibited.
(a) A lottery retailer or agent, associate, employee, or
representative of a lottery retailer may not sell a lottery
ticket to any individual unless the individual submits any one
of the following forms of identification to establish that the
individual is 18 years of age or older:
(1) A valid and current Alabama driver license containing
a photograph of the individual presenting the driver license.
(2) A valid and current driver license of another state
containing a photograph of the individual presenting the driver
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containing a photograph of the individual presenting the driver
license.
(3) A valid and current nondriver identification card
issued by the State of Alabama containing a photograph of the
individual presenting the identification card.
(4) A valid and current passport or visa issued by the
federal government or another country or nation which contains a
permanently attached photograph of the individual presenting the
passport or visa.
(5) A valid and current military or federal
identification card issued by the federal government containing
a photograph of the individual presenting the identification
card.
(6) A valid and current tribal identification card issued
by a federally recognized Indian tribe containing a photograph
of the individual presenting the identification card.
(b)(1) Each form of identification listed in subsection
(a) must on its face establish the age of the individual as 18
years of age or older and there must be no reason to doubt the
authenticity or correctness of the identification.
(2) No form of identification shall be accepted as proof
of age if it is expired, defaced, mutilated, or altered. If the
form of identification used is a duplicate, the presenting
individual shall submit additional identification which contains
the name, date of birth, and photograph of the individual.
(3) An educational institution identification card,
check-cashing identification card, or employee identification
card shall not be considered as lawful identification for the
purposes of this section.
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purposes of this section.
(c) The corporation shall assess a fine against any
lottery retailer who sells a lottery ticket to an individual
under 18 years of age in violation of this section, as follows:
(1) For a first offense, a fine of not less than two
hundred dollars ($200) nor more than one thousand dollars
($1000).
(2) For a subsequent offense, a fine of not less than
five hundred dollars ($500) nor more than two thousand dollars
($2,000). In addition, the corporation may suspend, revoke, or
take other disciplinary action against the lottery retailer
license of the lottery retailer.
(d)(1) Except as provided in subdivision (2), a person
who violates this section is guilty of a Class A misdemeanor.
(2) On a second or subsequent violation of this section,
a person is guilty of a Class A misdemeanor and shall serve a
minimum of 48 hours in the county jail.
§41-30-23. Underage purchase of lottery ticket; penalty.
(a) It is unlawful for any individual under 18 years of
age to purchase a lottery ticket.
(b) An individual who violates this section shall be
guilty of a violation and fined not more than one hundred
dollars ($100) and shall be subject to the citation and arrest
procedures of Section 11-45-9.1.
§41-30-24. Counterfeit lottery tickets prohibited.
(a) It shall be unlawful for any person, with intent to
defraud, to falsely make, alter, forge, utter, pass, or
counterfeit a lottery ticket.
(b) A violation of this section is a Class C felony.
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(b) A violation of this section is a Class C felony.
§41-30-25. Theft of lottery prize by deception or fraud.
(a) It shall be unlawful for any person to influence or
attempt to influence the winning of a lottery prize through the
use of coercion, fraud, or deception or by tampering with
lottery equipment or materials.
(b) A violation of this section is a Class B felony.
§41-30-26. Prohibited actions for current and former
board members and officers of the corporation.
(a) A current or former board member or officer of the
corporation, or a corporation or other entity owned in whole or
in part by a former board member or officer of the corporation,
may not solicit, accept employment, or enter into a contract for
compensation of any kind with a vendor of the corporation during
the member's service with the corporation or within one year
after termination of service with the corporation.
(b) The name of any individual who is a board member or
an officer or employee of the corporation shall not appear upon
any lottery ticket, lottery game, lottery form, or paper used in
playing any lottery game.
(c) A board member or an officer or employee of the
corporation who violates this section shall be removed from
office or dismissed from employment.
(d) The prohibitions of subsection (a) and subsection (c)
do not apply to ex officio members of the board.
(e) The State Ethics Commission shall administer and
enforce this section. The procedures and penalties provided for
in Chapter 25 of Title 36 shall apply to the administration and
enforcement of this section.
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enforcement of this section.
§41-30-27. Skimming of lottery proceeds.
(a) An individual may not knowingly exclude, or take any
action in an attempt to exclude, anything or its value from the
deposit, counting, collection, or computation of gross revenues
or net proceeds from lottery activities. A person who violates
this section commits the crime of skimming of lottery proceeds.
(b) An individual who commits the crime of skimming of
lottery proceeds shall be punished as follows:
(1) If the offense involves less than one thousand
dollars ($1,000), the individual is guilty of a Class C felony.
(2) If the offense involves one thousand dollars ($1,000)
or more but less than ten thousand dollars ($10,000), the
individual shall be guilty of a Class B felony. The individual
shall serve a minimum period of incarceration of not less than
three years without benefit of probation, parole, or suspension
of sentence.
(3) If the offense involves ten thousand dollars
($10,000) or more, the individual shall be guilty of a Class B
felony and shall serve a period of incarceration of not less 10
years nor more than 25 years without benefit of probation,
parole, or suspension of sentence.
§41-30-28. Compliance with federal laws.
The State of Alabama, in accordance with 15 U.S.C. §
1172, hereby declares that any and all lottery equipment, and
the materials, paraphernalia, and supplies thereof, may be
transported in interstate commerce into or out of the state
without violating that section, or any other applicable federal
law, if the equipment, materials, paraphernalia, and supplies
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law, if the equipment, materials, paraphernalia, and supplies
are used in accordance with this chapter.
§41-30-29. Lottery tickets.
(a) The board may adopt rules to provide for the form of
lottery tickets sold pursuant to this chapter.
(b) Lottery tickets, including instant tickets, shall be
printed onto paper, plastic, or other tangible material;
provided, the form of any multi-jurisdiction lottery ticket
shall be subject to any requirement to participate in any
multi-jurisdiction draw-based lottery.
§41-30-30. Financial integrity of lottery.
(a) To ensure the financial integrity of the lottery, the
corporation through its board shall do all of the following:
(1) Compile and submit quarterly and annual reports and
financial statements.
(2) Contract with an independent auditor who is a
certified public accountant or firm to conduct an annual
financial audit of the books and records of the corporation. The
cost of this annual financial audit shall be an operating
expense of the corporation. The independent auditor shall have
no financial interest in any vendor with whom the corporation is
under contract.
(b) A contract for an independent auditor under this
section shall be reviewed by and subject to the approval of the
Examiner of Public Accounts to ensure that the independent
auditor is qualified to perform the audit.
(c) The audit shall be completed by January 1 of each
year.
(d) A contract for audit services may not exceed a period
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(d) A contract for audit services may not exceed a period
of five years and the same firm may not receive two consecutive
audit contracts.
§41-30-31. Distribution of lottery funds.
On an annual basis, the Legislature shall appropriate the
proceeds in the Alabama Lottery Trust Fund by and through an
independent supplemental appropriation bill for only one or more
of the following purposes:
(1) For the establishment and support of problem gambling
and gambling addiction treatment centers and programs.
(2) For the establishment and provision of a last-dollar
postsecondary scholarship program for in-state, public two-year
community and technical colleges and in-state public four-year
institutions of higher education.
(3) For cost-of-living raises and other benefits for
state education employees and bonuses or other benefits to
retirees of the Teachers' Retirement System.
(4) For the award of grants for the operation,
maintenance, and improvement of existing health care facilities,
with an emphasis on preventing the closure of hospitals in rural
areas of the state.
(5) For the award of tax credits to eligible residents of
the state as determined by the Legislature.
Section 2. Sections 13A-12-20, 13A-12-21, 13A-12-22,
13A-12-23, 13A-12-24, 13A-12-25, 13A-12-26, 13A-12-27,
13A-12-28, and 13A-12-30, Code of Alabama 1975, are amended to
read as follows:
"§13A-12-20
The following definitions apply to this article:
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The following definitions apply to this article:
(1) ADVANCE GAMBLING ACTIVITY. A person "advances gambling
activity" if he engages in c Conduct that materially aids any
form of gambling activity . Conduct of this nature includes ,
including, but is not limited to , conduct any of the following:
a. Conduct directed toward the creation or establishment
of the particular game, contest, scheme, device , or activity
involved ,.
b. Conduct directed toward the acquisition or maintenance
of premises, paraphernalia, equipment , or apparatus therefor ,.
c. Conduct directed toward the solicitation or inducement
of persons to participate therein ,.
d. Conduct directed toward the actual conduct of the
playing phases thereof ,.
e. Conduct directed toward the arrangement of any of its
financial or recording phases or toward any other phase of its
operation. A person advances gambling activity if, having
f. Any situation where a person has substantial
proprietary control or other authoritative control over premises
being used with his or her knowledge for purposes of gambling
activity, he and the person permits that activity to occur or
continue or makes no effort to prevent its occurrence or
continuation.
(2) BOOKMAKING. Advancing gambling activity by
unlawfully Unlawfully accepting bets from members of the public
as a business, rather than in a casual or personal fashion, upon
the outcome of future contingent events.
(3) COIN-OPERATED AMUSEMENT MACHINE. Every game or device
(i) whose operation requires the payment of or insertion of a
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(i) whose operation requires the payment of or insertion of a
coin, bill, other money, token, ticket, or similar object; (ii)
is designed and manufactured for bona fide amusement purposes;
(iii) by application of some skill, entitles the player to
replay the game or device at no additional cost if a single play
can reach no more than 25 free replays or can be discharged of
accumulated free replay, or rewards the player exclusively with
merchandise limited to noncash merchandise, prizes, toys, gift
certificates, or novelties, each of which has a wholesale value
of not more than 10 dollars ($10); and (iv) can be legally
shipped interstate according to federal law.
a. The term includes, but is not limited to, the
following: Pinball machines, console machines, video games,
crane machines, claw machines, pusher machines, bowling
machines, novelty arcade games, foosball or table soccer
machines, miniature racetrack or football machines, target or
shooting gallery machines, basketball machines, shuffleboard
games, kiddie ride games, skeeball machines, air hockey
machines, roll down machines, coin-operated pool table or
coin-operated billiard table, and every machine of any kind or
character used by the public to provide music whose operation
requires the payment of or the insertion of a coin, bill, other
money, token, ticket, or similar object, including jukeboxes or
other similar types of music machines.
b. The term does not include slot machines, video poker
games, electronic bingo, or any other machine that is not
legally permitted to be operated in the state.
(4) ELECTRONIC GAME OF CHANCE. Any game of chance,
including, but not limited to, pachinko, video lottery
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including, but not limited to, pachinko, video lottery
terminals, video poker machines, and electronic bingo machines.
The term does not include a coin-operated amusement machine.
(3) CONTEST OF CHANCE. Any contest, game, gaming scheme or
gaming device in which the outcome depends in a material degree
upon an element of chance, notwithstanding that skill of the
contestants may also be a factor therein.
(4)(5) GAMBLING ACTIVITY . A person engages in gambling if
he stakes or risks something Staking or risking a thing of value
upon the outcome of a contest game of chance or a future
contingent event not under his or her control or influence, upon
an agreement or understanding that he or she or someone else
will receive something a thing of value in the event of a
certain outcome. Gambling The term does not include bona any of
the following:
a. Bona fide business transactions valid under the law of
contracts, including , but not limited to , contracts for the
purchase or sale at a future date of securities or commodities ,
and agreements .
b. Agreements to compensate for loss caused by the
happening of chance, including , but not limited to , contracts of
indemnity or guaranty and life, health , or accident insurance.
c. Traditional raffles used with paper tickets or
traditional paper bingo when conducted for bona fide fundraising
purposes in a noncommercial manner.
(5)(6) GAMBLING DEVICE. Any device, machine,
paraphernalia , or equipment that is normally used or usable in
the playing phases of any gambling activity, whether that
activity consists of gambling between persons or gambling by a
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activity consists of gambling between persons or gambling by a
person involving the playing of a machine. However, The term
does not include lottery tickets, traditional paper raffle
tickets, traditional paper bingo, or coin-operated amusement
machines policy slips and other items used in the playing phases
of lottery and policy schemes are not gambling devices within
this definition .
(7) GAME OF CHANCE. Any contest, game, gambling scheme, or
gambling device in which the outcome depends in a material
degree upon an element of chance, notwithstanding that skill of
the contestants may also be a factor.
(8) INSTANT WIN TICKET. A lottery game in which a player
scratches or otherwise removes anything overlaying words or
symbols to determine whether the player has won, as indicated by
the symbols and words that are displayed.
(6)(9) LOTTERY or POLICY LOTTERY GAME . A game of chance
that generally involves the selling of numbered or other
identifiable lottery tickets or instant win tickets and the
drawing or revealing of winning numbers at random for the award
of a prize. An unlawful gambling scheme in which:
a. The players pay or agree to pay something of value for
chances, represented and differentiated by numbers or by
combinations of numbers or by some other medium, one or more of
which chances are to be designated by the winning ones; and
b. The winning chances are to be determined by a drawing
or by some other fortuitous method; and
c. The holders of the winning chances are to receive
something of value.
(10) LOTTERY TICKET. Any tangible evidence of proof of
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(10) LOTTERY TICKET. Any tangible evidence of proof of
participation in, or a right, privilege, or possibility of
becoming a winner in, a lottery game.
(11) OPERATOR. Any person in control of, or having
responsibility for, the daily operation of a business
establishment or other premises. The term does not include a
store clerk or other employee of the establishment who is under
the control or supervision of another person.
(12) OWNER. Any of the following:
a. Any person who owns a business establishment or other
premises.
b. Any mortgagor, lessor, or other person with the right
to possession of a business establishment or other premises.
c. Any person whose name appears on a lease, alcohol
retail license, or other legal document associated with a
business establishment or other premises.
(7)(13) PARI-MUTUEL, MUTUEL , or THE NUMBERS GAME. A form
of lottery or other gambling activity in which the winning
chances or plays are not determined upon the basis of a drawing
or other act on the part of persons conducting or connected with
the scheme, but are determined upon the basis of the outcome of
a future contingent event or events otherwise unrelated to the
particular scheme.
(8)(14) PLAYER. A person who engages in any form of
gambling activity solely as a contestant or bettor, without
receiving or becoming entitled to receive any profit therefrom
other than personal gambling winnings, and without otherwise
rendering any material assistance to the establishment, conduct ,
or operation of the particular gambling activity.
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or operation of the particular gambling activity.
(9)(15) PROFIT FROM GAMBLING ACTIVITY. A person "profits
from gambling activity" if he accepts or receives Accepting or
receiving money or other property pursuant to an agreement or
understanding with any person whereby he shares or is to share
in the proceeds of gambling activity.
(10)(16) SLOT MACHINE. A gambling device that, as a result
of the insertion of a coin or other object, operates, either
completely automatically or with the aid of some physical act by
the player, in such a manner that, depending upon elements of
chance, it may eject something of value. A device so constructed
or readily adaptable or convertible to such use is no less a
slot machine because it is not in working order or because some
mechanical act of manipulation or repair is required to
accomplish its adaptation, conversion , or workability. Nor is it
any less a slot machine because apart from its use or
adaptability as such it may also sell or deliver something of
value on a basis other than chance.
(11)(17) SOMETHING THING OF VALUE. Any of the following:
(i) money or property ,;(ii) any token, object , or article
exchangeable for money or property ; or (iii) any form of credit
or promise directly or indirectly contemplating transfer of
money or property or of any interest therein , or involving
extension of a service entertainment or a privilege of playing
at a game or scheme without charge . The term does not include a
de minimis benefit when considering its value and the frequency
with which it is provided.
(12)(18) UNLAWFUL. Not specifically authorized by law."
"§13A-12-21
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"§13A-12-21
(a) A person commits the crime of simple unlawful gambling
if he the person knowingly advances participates in or profits
from unlawful gambling activity as a player.
(b) It is a defense to a prosecution under this section
that a person charged with being a player the defendant was
engaged in a social game in a private place. The burden of
injecting the issue is on the defendant, but this does not shift
the burden of proof.
(c)(1) Simple gambling is a Class C Class A misdemeanor.
(2) Simple gambling is a Class D felony if the person has
a prior conviction under this article. "
"§13A-12-22
(a) A person commits the crime of promoting gambling
activity if he the person knowingly advances or profits from
unlawful gambling activity otherwise than as a player.
(b)(1) Promoting gambling is a Class A misdemeanor Class C
felony .
(2) Promoting gambling is a Class B felony if the person
has a prior conviction under this article. "
"§13A-12-23
(a) A person commits the crime of conspiracy to promote
unlawful gambling activity if he the person conspires to advance
or profit from gambling activity otherwise than as a player.
(b) "Conspire" means to engage in activity constituting a
criminal conspiracy as defined in Section 13A-4-3.
(c)(1) Conspiracy to promote unlawful gambling activity
is a Class A misdemeanor Class C felony .
(2) Conspiracy to promote unlawful gambling activities is
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(2) Conspiracy to promote unlawful gambling activities is
a Class B felony if the person has a prior conviction under this
article. "
"§13A-12-24
(a) A person commits the crime of possession of gambling
records in the first degree if , with knowledge of the contents
thereof, he the person possesses any writing, paper, instrument ,
or article of a kind commonly used in the operation or promotion
of any of the following :
(1) Of a kind commonly used in the operation or promotion
of a A bookmaking scheme or enterprise , and constituting,
reflecting , or representing more than five 10 bets, or more than
$500.00 one thousand dollars ($1,000) ; or.
(2) Of a kind commonly used in the operation, promotion or
playing of a An unlawful lottery or mutuel scheme or enterprise ,
and constituting, reflecting , or representing more than five 10
plays or chances therein.
(3) An unlawful electronic game of chance.
(b)(1) Possession of gambling records in the first degree
is a Class A misdemeanor Class C felony .
(2) Possession of gambling records in the first degree is
a Class B felony if the person has a prior conviction under this
article. "
"§13A-12-25
(a) A person commits the crime of possession of gambling
records in the second degree if , with knowledge of the contents
thereof, he the person possesses any writing, paper, instrument ,
or article of a kind commonly used in the operation or promotion
of either of the following :
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of either of the following :
(1) Of a kind commonly and peculiarly used in the
operation or promotion of a A bookmaking scheme or enterprise ;
or.
(2) Of a kind commonly and peculiarly used in the
operation, promotion or playing of a A lottery or mutuel scheme
or enterprise.
(b)(1) Possession of gambling records in the second
degree is a Class A misdemeanor.
(2) Possession of gambling records in the second degree
is a Class C felony if the person has a prior conviction under
this article. "
"§13A-12-26
A person does not commit the crime of possession of
gambling records in either degree pursuant to Section 13A-12-24
or Section 13A-12-25 if the writing, paper, instrument , or
article possessed by the defendant is neither used nor intended
to be used in the operation or promotion of a bookmaking scheme
or enterprise, or in the operation, promotion , or playing of a
lottery or mutuel scheme or enterprise. The burden of injecting
the issue is on the defendant, but this does not shift the
burden of proof."
"§13A-12-27
(a) A person commits the crime of possession of a gambling
device if , with knowledge of the character thereof , he or she
the person manufactures, sells, transports, places , or
possesses, or conducts or negotiates any transaction affecting
or designed to affect ownership, custody , or use of either of
the following :
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the following :
(1) A slot machine, unless exempted pursuant to subsection
(c); or.
(2) Any other gambling device, with the intention that it
be used in the advancement of to advance unlawful gambling
activity.
(b)(1) Possession of a gambling device is a Class A
misdemeanor Class C felony .
(2) Possession of a gambling device is a Class B felony if
the person has a prior conviction under this article.
(c) The crime of possession of a gambling device does not
apply to a slot machine manufactured before 1960, with the
intention that the slot machine be used only for the personal
and private use of the owner or for public display as a
historical artifact in a manner that the slot machine is not
accessible to the public."
"§13A-12-28
(a) Proof of possession of any gambling device , as defined
by subdivision (5) of Section 13A-12-20 or any gambling record
specified in Sections 13A-12-24 and 13A-12-25 is prima facie
evidence of possession thereof with knowledge of its character
or contents.
(b) In any prosecution under this article in which it is
necessary to prove the occurrence of a sporting event, either of
the following shall be admissible in evidence and shall
constitute prima facie proof of the occurrence of the event:
(1) a A published report of its occurrence in any daily
newspaper, magazine , or other periodically printed publication
of general circulation , or .
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of general circulation , or .
(2) evidence Evidence that a description of some aspect
of the event was written, printed , or otherwise noted at the
place in which a violation of this chapter is alleged to have
been committed , shall be admissible in evidence and shall
constitute prima facie proof of the occurrence of the event ."
"§13A-12-30
(a) Any gambling device or gambling record possessed or
used in violation of this article is shall be forfeited to the
state as illegal contraband , and shall by court order be
destroyed or otherwise disposed of as the court directs , without
the necessity of any secondary civil forfeiture action. On
conviction of the underlying violation of this article, the
defendant shall be required to pay all costs associated with the
seizure, storage, and disposition of the contraband .
(b) Any vehicle possessed or used in violation of this
article may be forfeited to the state and disposed of by court
order as authorized by law shall be subject to forfeiture
pursuant to the procedures set forth in Section 20-2-93 .
(c) Money used as bets or stakes in gambling activity in
violation of this article is forfeited to the state and by court
order shall be transmitted to the General Fund of the state
shall be subject to forfeiture pursuant to the procedures set
forth in Section 20-2-93 .
(d) All property that is seized and not required to be
destroyed may be sold. The proceeds from the sale shall be used
first for payment of all proper expenses of the proceedings for
forfeiture and sale, storage expenses, advertising costs, and
court costs. All remaining proceeds and any money forfeited
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court costs. All remaining proceeds and any money forfeited
shall be awarded and distributed by the court to the seizing
agencies or prosecuting authorities that participated in the
investigation, seizure, and litigation. "
Section 3. Section 13A-12-32 is added to Article 2 of
Chapter 12 of Title 13A, Code of Alabama 1975, to read as
follows:
§13A-12-32
The owner or operator of a business establishment or
other premises may be held criminally liable for a violation of
this division if a violation of this division occurs on the
premises of the business establishment or other premises of the
owner or operator thereof and either of the following apply:
(1) The owner or operator had actual knowledge of the
violation and allowed or consented to the violation.
(2) The owner or operator was deemed to have constructive
knowledge of the violation and failed to reasonably cause the
violation to cease within the amount of time provided by written
notice of the violation. The owner or operator of a business
establishment or other premises shall be deemed to have
constructive knowledge of a violation upon any law enforcement
agency or prosecutorial entity providing written notice of the
violation and a reasonable opportunity to cure the violation.
The notice may be provided in person or by certified mail.
Section 4. Division 3, comprised of Sections 13A-12-70
through 13A-12-76, of Article 2 of Chapter 12 of Title 13A, Code
of Alabama 1975, relating to the transportation of lottery
paraphernalia, is repealed.
Section 5. In the event the proposed constitutional
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Section 5. In the event the proposed constitutional
amendment in House Bill xxx of the 2026 Regular Session is not
ratified, this act shall be repealed.
Section 6. This act shall become effective upon
ratification of the amendment to the Constitution of Alabama of
2022, proposed in House Bill xxx of the 2026 Regular Session.
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