FISCAL NOTE

Senate Bill 320 as introduced would implement the provisions of the constitutional amendment, proposed by Senate Bill 319 of the 2021 Regular Session, by establishing the powers and duties of the Alabama Lottery Commission, including the authority to adopt rules for lottery games including but not limited to state or multi-state lottery, instant tickets, Keno, iLottery or any other lottery offered in another state. This bill provides for the equal distribution of proceeds to the State General Fund and the Education Trust Fund from: (1) the Lottery Trust Fund; and (2) the state gross receipts on gaming revenues and video lottery terminal vendors. The amount of revenue expected to be generated from the operation of the lottery to the SGF and the ETF is an estimated $158 million each, per year. The amount of revenue expected to be generated to the State General Fund and the Education Trust Fund from gaming is as follows: (1) $75 million, per fund, annually from the levying of a 22% state gross receipts tax on gaming gross revenue; (2) $8.1 million, per fund, annually from the levying of an additional 1% state tax on the gaming gross revenues generated from video lottery terminals; and (3) $32.6 million, per fund, annually from the levying of a 4% state video lottery terminal vendor tax. This bill also provides for the distribution of proceeds from a 2% local gross receipts tax generated from gaming revenue. The receipts to the local governments are expected to increase by an estimated $32.6 million from the 2% local gross receipts tax on gaming gross revenue.

Additionally, this bill provides that up to $200,000, of unclaimed prize money will be directed annually to the Alabama Department of Public Health for the treatment of compulsive gaming disorder.

As substituted and reported by the Committee on Tourism removes all provisions authorizing gaming and taxation of gaming gross revenues, which included the distribution of proceeds to the State General Fund and the Education Trust Fund as follows: (1) $75 million, per fund, annually from the levying of the 22% state gross receipts tax on gaming gross revenue; (2) $8.1 million, per fund, annually from the additional 1% state tax on gaming gross revenues from video lottery terminals; (3) $32.6 million, per fund, annually from the levying of a 4% state video lottery terminal vendor tax; and (4) $32.6 million, per fund, annually from the 2% local gross receipts tax on gaming gross revenue.

Additionally, this bill provides that up to $200,000 of unclaimed prize money will be directed annually to the Alabama Department of Public Health for the treatment of compulsive gaming disorder.