Does Alabama have a lottery? Not currently – Alabama is one of just six states that does not have a state lottery. The others are Alaska, Hawaii, Mississippi, Nevada, and Utah. These states are also not part of multi-state games like Powerball and Mega Millions.
Can you buy lottery tickets in Alabama?
If you live in Alabama, you can’t buy lottery tickets, like Powerball or Mega Millions, within the state or online, according to the Multi-State Lottery Association, the group that manages the Powerball drawing.
However, Alabama residents do often travel across the border to buy lottery tickets in neighboring states, and lottery retailers near the border in Georgia, Florida, and Tennessee do a brisk business, especially when a big jackpot creates extra excitement.
If an Alabama resident won the lottery on a ticket bought in another state, they would be able to claim their prize, but they would still have to declare their winnings as income. A big prize would put the winner in Alabama’s top six percent tax bracket. The winner would not pay state tax in the state where they bought the ticket.
Many argue that the money currently spent on lottery tickets in other states should be spent in Alabama instead, with revenue from a lottery going towards education, roads, and other good causes within the state.
Alabama resident Thomas Hawkins gets his Powerball tickets over the border in Florida, but wants Alabama to legalize multi-state lotteries too. “I think it would help, especially with the General Fund,” he said.
So, could Alabama be the next state to get its own lottery?
Lottery bill passes Alabama Senate
The absence of a state lottery has not been for lack of trying on the part of some state lawmakers. In almost every session of the Alabama legislature, a lottery bill is introduced but subsequently fails.
Gambling is outlawed in the state’s 1901 constitution, and the state has a history of religious opposition to gaming. However, that hasn’t stopped all forms of betting in the state entirely.
As of May 2019, a bill to legalize a paper-based lottery is currently making its way through Alabama’s legislature.
On April 25, the bill passed the Alabama Senate in a very tight result with no votes to spare. The bill needed 21 votes to pass, and that’s exactly what it got, passing 21-12. 21 was the minimum number of votes required for the bill to pass because the legislation is a proposed constitutional amendment and therefore it needs three-fifths of the 35 senators to vote in favor.
The bill’s sponsor, Rebublican state senator Greg Albritton, said he was вЂњpleased, a little surprised, and grateful itвЂ™s over.вЂќ He said he had not been expecting the bill to pass, based on head-counts before the vote. вЂњI came in fully anticipating this to be a very, very, close vote,вЂќ he admitted.
The bill is now on its way to the Alabama House, where it will also be subject to the same three-fifths majority requirement. If the House passes it, the bill will be put to Alabama voters in a statewide vote on March 3, 2020. Alabamians would have to give the constitutional change the green light before a lottery could be introduced.
What’s in the lottery bill
The bill would enable a paper lottery, which means it would allow multi-state or intrastate games, like Powerball and Mega Millions, played with paper tickets and instant tickets.
вЂњItвЂ™s a simple lottery,вЂќ Albritton said. вЂњIt gives people the right to vote as to whether to have a lottery or not. Straight paper lottery. ThatвЂ™s it.вЂќ
It would not allow any type of video lottery terminals, mobile- or internet-based video games, casino-style games, or slot machines.
The bill does not change the status of any type of gaming that is currently legal. An amendment was added that protected the bingo games played in some counties where pari-mutuel betting is already legal by excluding them from the definition of a video lottery terminal.
Bill sparks intense debate
Debate in the Senate before the vote was heated. Supporters of a paper lottery say it is “clean” and “simple” and so has the best chance of passing.
However, critics argued that electronic machine gaming, which is especially popular with younger people, should be included, or the legislature would simply have to revisit the issue in the future.
Democrat Bobby Singleton, the Senate Minority Leader, voted against the bill, saying the lottery should be defined more broadly to raise more revenue and provide flexibility to incorporate changes in technology.
вЂњI want us to be able to make sure that we do everything that we need to do so that we wonвЂ™t have to come back in another constitutional amendment trying to amend it two years down the line,” he said. “I think we need to really think this through, do a complete lottery that will grow and allow us to be able to get the maximum amount of dollars that we possibly can for the state.вЂќ
The bill also barely squeaked through its previous test, where it was approved by the Senate Tourism Committee on April 23 by a 6-5 vote.
The Tourism Committee did not consider a separate lottery proposal by Republican Sen. Jim McClendon that would have allowed video lottery terminals in some counties. Republican Sen. Del Marsh said he thought Albritton’s bill, of which he is the co-sponsor, had a better chance of being passed because it is simpler.
вЂњWhat IвЂ™m trying to do is give a vehicle that has a chance of getting to the people for a vote,вЂќ Marsh explained. вЂњBecause I do believe the majority of people in Alabama want to vote on a lottery bill.вЂќ
Still other lawmakers objected to a lottery in principle, in line with Alabama’s history of religious opposition to gambling.
The Senate vote was not strictly along party lines, with five Democrats and seven Republicans voting against the bill.
What would lottery money be used for?
Sen. Albritton’s bill estimates a paper lottery would raise $167 million a year after prizes and expenses are paid out. A 2015 Auburn University Montgomery study that was commissioned by the bill’s co-sponsor Sen. Marsh was more optimistic, projecting that a state lottery would raise $330 million a year.
After the costs of operating the lottery were covered, leftover proceeds would go to the Alabama Trust Fund to repay $184 million that it paid to the State General Fund to balance the state budget in 2013, 2014 and 2015.
After those funds are repaid, half the money would go to the General Fund, and the other half would initially go into a new reserve fund until it reaches the level of 10 percent of the General Fund budget. The monies would then stop being funelled into the reserve fund, and instead start to flow into the Alabama Trust Fund.
How best to spend the money from any Alabama lottery has been a long-standing subject of debate.
The state has entrenched budget problems, which led to the substantial transfer of money from the Alabama Trust Fund to the General Fund in the first place. Many argue that until these core issues of state finance are resolved, the lottery will simply be a Band-Aid that conceals the need for more fundamental changes in the way the state raises and spends money.
In a sign of the dire state of Alabama’s budget, Sen. McClendon, who also sponsored the last major bill to start a lottery in 2016, said, вЂњmy motivation is not to solve fiscal problems in Alabama. ThereвЂ™s not enough money in the universe.вЂќ
Critics also contend that the bill does not tackle the state’s patchwork quilt of existing gambling regulations, which should be reformed. The Poarch Band of Creek Indians are federally recognized and operate casinos in Atmore, Montgomery, and Wetumpka under federal law, which the state does not earn direct tax dollars from, while other forms of gaming, like pari-mutuel betting, are already legal.
If the state is going to allow gambling, critics say, it should be those types that are going to earn the most and keep money from being spent out-of-state. They point to the bill’s ban on mobile- and web-based games, which appeal to younger people, as evidence of its limited fundraising potential.
Another critique is that, unlike many states, the Alabama lottery bill does not specifically earmark money for initiatives that can bring about positive generational change. For example, in neighboring Georgia, money is put towards a college scholarship fund.
What’s next for a lottery in Alabama?
The Albritton bill has survived this far, but its success is by no means guaranteed. Legislation to authorize a lottery must confront a thorny group of constitutional, economic and political hurdles.
Even if the House approves the bill, there is doubt about which way Alabamians would vote. A lottery was previously put to a public vote in 1999, supported by the then-governor Don Siegelman, and voters rejected it by 54 percent to 46 percent.
Another divisive issue involves access to gaming machines. The Alabama Legislature seemed about to approve McClendon’s lottery bill in 2016, but just as now, the bill only approved a paper lottery. Ultimately, this led to its failure.
There is tension between two groups that run gaming facilities in the state. The Poarch Band run casinos in Atmore, Montgomery, and Wetumpka under federal law, while Alabama’s four dog tracks operate under state law.
Senate Democrats have generally been supportive of lotteries, but in 2016, they argued that a paper lottery would give the Poarch Band a monopoly on Virtual Lottery Terminals (VLTs), a gaming machine that the dog tracks would not have had access to under state law. The GreeneTrack dog track in Greene County is in Sen. Singleton’s district, and his concerns about the dog tracks being unable to obtain VLTs led to him voting against the bill.
Singleton was also concerned because federal law considers lotteries Class III gaming, a designation that includes slot machines and table games. Singleton said the Poarch Band would be able to install the machines. вЂњThe reality is a lottery is a Class III game,вЂќ he said. вЂњIf we allow Class III gaming they will go full casino, as opposed to bingo.вЂќ
Robert McGhee, director of government relations for the Poarch Band of Creek Indians, said that while he hadnвЂ™t looked at the current bill in detail, he believed it would give вЂњthe people of Alabama what they wantвЂќ – the chance to vote on a lottery. вЂњThe point is you still have to have a negotiated compact with the state,вЂќ he said. вЂњWe do not operate outside of a compact.вЂќ
Sen. AlbrittonвЂ™s district includes Atmore, where the Poarch Band operate the Wind Creek Casino. вЂњI speak to my constituents, the Poarch Band included, about this particular bill,вЂќ he said. вЂњI havenвЂ™t gotten a yes or a no.вЂќ
Governor Kay Ivey, for one, is choosing her words carefully. “I certainly support the people of Alabama having a chance to vote,” she said. “But there’s also a principle of public policy that says, never attach an uncertain source of funds to an essential need of the state.”News and information about a future Alabama Lottery, including answers to frequently asked questions such as whether AL residents can buy Powerball and Mega Millions tickets and whether you can win the lottery if you live in Alabama.
Lottery in Alabama? Will it finally happen? Here’s what you need to know
Could Alabama soon join Mississippi in having a statewide lottery? Dan Gleiter, PennLive, 2016 PENNLIVE.COM
The Alabama Senate passed the lottery bill by a vote of 21-12, yesterday, advancing the measure to the House. If approved there, it will go on the ballot for voters in the March 2020 presidential primary.
Alabama voters could soon have their say on a statewide lottery.
Here’s what you need to know about the latest chapter in the long – and complicated – history of efforts to bring a lottery to Alabama.
Sen. Greg Albritton, R-Atmore, has introduced a measure to establish a lottery in Alabama. The proposal cleared its first hurdle Tuesday, winning approval – albeit on a close 6-5 vote – from the Senate Tourism Committee. The measure now goes to the full Senate which could vote as soon as this week. If approved in the upper chamber, it moves to the House.
It takes approval by three-fifths of senators and representatives to put a proposed constitutional amendment on the ballot.
What would legislative approval mean?
Legislators would not be the final say on the lottery. The lottery would require a constitutional amendment and that would have to be approved by state voters.
What kind of lottery would Alabama have?
Albritton’s bill would limit the lottery to multi-state or intrastate games played with paper tickets and instant tickets, such as Lotto. It excludes any forms of electronic gaming, including video lottery terminals, internet-based video or casino-style games. The bill would not change the status of any of the current forms of legal gambling in the state.
How much money would the lottery generate?
Fiscal notes on the bill estimates it would bring in as much as $167 million a year, after payouts and expenses.
What would the money be used for?
Initially, revenue from the lottery would be used to repay the Alabama Trust Fund, which transferred $184 million to the General Fund to balance the state budgets in 2013, 2014 and 2015. After that, the proceeds would be split evenly between Alabama Trust Fund and the General Fund.
What does Gov. Kay Ivey think?
During her campaign, Ivey said “if people want to vote (on a lottery), that is fine.”
Critics aren’t convinced
The Alabama Policy Institute, a conservative think tank, has been vocal in opposition to the lottery.
“Lotteries are often marketed as merely a form of entertainment, one that can be converted into a public good by investing the proceeds into education or other government programs. While this view is appealing on the surface, it is more accurate to think of the lottery as a tax,” API said in a statement. “Lottery players lose an average of 47 cents on the dollar for each ticket, and with such low payouts, tickets act as an implicit tax of 38 percent. Thus, the revenue derived from a lottery can be thought of as an excise tax on playing the lottery, especially considering the extremely low odds of winning.
“Any source of revenue that preys on the poor and vulnerable to be successful is wrong. A lottery is more than just a personal vice that affects the individual who chooses to do it; it is an economic injustice that Alabamians of all political leanings should oppose,” the group added.
When was the last lottery vote?
Alabamians last voted on a statewide lottery in 1999, when they rejected Gov. Don Siegelman’s plan for an Education Lottery. The referendum failed in a 54-46 percent vote amid heavy pressure from religious groups.
Former Gov. Robert Bentley proposed a statewide lottery in 2016 in response to a state budget crisis. Bentley’s measure was approved by the Senate but didn’t clear the House.
States without a lottery
Alabama is one of six states that don’t have a lottery. Currently, Alabama, Alabama, Alaska, Hawaii, Mississippi, Nevada and Utah don’t participate in a lottery, though that’s scheduled to change later this year in Mississippi, which expects to begin gaming this year. Nevada, home to gambling hub Las Vegas, has resisted a lottery for fear it would cut into casino profits.
How other states use lottery money
According to the National Conference of State Legislatures, on average, about 1 percent of state revenue comes from lotteries, with proceeds most often going towards education. Sometimes the money goes into the general fund but it is typically pledged towards special projects, like schools or infrastructure.
At last count, there were 11 states in which lottery revenues exceeded revenues from corporate taxes.
How will Mississippi use its lottery money?
Mississippi’s lottery calls for the first $80 million in revenue to go towards road and bridge construction. Any revenue over $80 million will go to the Education Enhancement Fund to benefit education.
The Mississippi lottery is expected to raise $40 million the first year. After 10 years, that first $80 million goes to the state’s general fund.
Note to readers: if you purchase something through one of our affiliate links we may earn a commission.
© 2020 Advance Local Media LLC. All rights reserved (About Us).
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local.
Community Rules apply to all content you upload or otherwise submit to this site.Lottery in Alabama? Will it finally happen? Here’s what you need to know Could Alabama soon join Mississippi in having a statewide lottery? Dan Gleiter, PennLive, 2016 PENNLIVE.COM The Alabama ]]>