Reps. Chris Blackshear, R-Phenix City, and Andy Whitt, R-Madison, introduced two bills in the Alabama House of Representatives on Thursday that would authorize a state lottery, casinos, legal sports betting, and a new Alabama Gaming Commission.

One bill is a constitutional amendment that would require voter approval. The other bill, 144 pages, spells out some specifics on the lottery and how the commission would license and regulate the casinos.

When will voters get to decide?

Before it gets to the voters, the constitutional amendment requires approval by three-fifths of the members of the House and Senate. That’s 63 representatives in the 105-seat House and 21 out of 35 senators.

The question would then be on the ballot in the general election in November.

The three-fifths requirement is a high bar. No lottery bill has reached the voters since they rejected a plan in 1999.

Where would the casinos be?

The constitutional amendment allows up to seven new casinos, all licensed by the Alabama Gaming Commission. They would be in Macon County, Greene County, Mobile County, Birmingham, Houston County, and Lowndes County.

The seventh would be in northeast Alabama and would operated by the Poarch Band of Creek Indians. It would be contingent on the governor and the Poarch Band agreeing to a compact. The constitutional amendment says the governor “shall” negotiate with the tribe and “may” execute a compact.

The seventh casino would be in addition to the three casinos now operated by the Poach Band on tribal lands in Atmore, Wetumpka, and Montgomery. Those casinos currently offer only electronic bingo. The seventh casino would not be on tribal land.

What games could casinos offer?

All the traditional games, including blackjack, roulette, craps, poker, and others, as well as slot machines, video poker and others.

People would have to be 21 or older to play the games. No casino games would be available online.

What happens to bingo halls operating now in some counties?

The new statewide constitutional amendment would repeal 17 local constitutional amendments that allow bingo. It would prohibit future local gambling amendments. The bingo halls in the affected counties could continue to operate until Jan. 1, 2027, but would have to comply with certain requirements by the new Alabama Gaming Commission.

Where could people bet on sports?

The legislation would allow sports betting in person at the casinos, as well as online and through mobile apps. The commission could issue one license for a sports betting company for each casino. The bill does not specify how many online sports betting licenses the commission would issue, but says the number of licenses should foster a competitive environment.

What kind of bets could people make?

People could bet on sporting events that have not yet occurred or that are already underway, including the outcome of a game or the individual performance statistics of the athletes who are competing.

That includes, but is not limited to, single-game bets, teaser bets, parlays, over-under, and others.

Betting on K-12 athletic events and youth sports would be prohibited. The bill says sports betting would be limited to those age 21 and older using age-verification software.

Who would control the Alabama Gaming Commission?

There would be a nine-member commission to oversee the new agency, which would have its headquarters in Montgomery.

The governor would appoint four members, the speaker of the House and the president pro tem of the Senate would appoint two each, and the lieutenant governor would appoint one. One of the appointees by the speaker and by the pro tem would be recommended by the minority leader in each chamber.

Members could not be public officials or have a criminal record. They would have to be at least 30 years old. The appointing authorities would coordinate the membership to reflect the state’s diversity by race, gender, and location.

Members would be paid one-half of what legislators are paid. Alabama lawmakers will be paid about $59,000 this year, a salary based on the state’s median income.

How would enforcement of gambling laws change?

The Alabama Gaming Commission would have a Gaming Enforcement Division. The commission would adopt rules and regulations to license and govern casinos.

The Gaming Enforcement Division would be led by a Gaming Enforcement Officer with arrest powers. The division would hire staff, including investigators, auditors, forensic accountants, information technology experts, compliance officers, and administrative staff.

The Enforcement Division could impose reasonable civil penalties. It could conduct criminal investigations into unlicensed facilities and unlawful operations.

Who would own the casinos?

The law says the commission would adopt rules to conduct on open bidding process for the casino licenses.

Casinos would need approval by the county commission or the municipality where they will be located, either by a resolution or by voter approval in a referendum.

The commission would require license applicants to demonstrate the ability to make a capital investment of at least $35 million. That could include previous investment at an existing facility. Those awarded licenses would have to start construction or renovation of facilities within 12 months.

License fees would be determined partly based on the size of the establishment and other factors but would be at least $5 million and would be for a 15-year term.

The bill says the commission would have to approve any transfers of licenses or change in the principal owners or investors.

How would the lottery operate?

The bill would establish the Alabama Lottery Corporation, which would be led by a seven-member board. The seven members would be appointed by the governor and confirmed by the Senate. The commissioner of the Department of Revenue and the state treasurer would be ex-officio, non-voting members.

What kind of lottery games would be offered?

The board would determine the type of lottery games offered, sale price of tickets, number and amount of prizes, and the compensation to lottery retailers, as well as make decision on other policies affecting how the lottery operates.

The games could include multi-state lotteries and instant games.

Who could play the lottery?

A lottery retailer could be charged with a misdemeanor and fined for selling lottery tickets to people under age 18.

How will the lottery funds be used?

Money from the sale of lottery tickets will go into a fund to pay the lottery’s operating and expenses. The remainder will go to a Lottery for Education Fund.

The Legislature will appropriate money from the Lottery for Education Fund annually for education purposes, including, but not limited to:

• Scholarships for two-year or technical colleges.
• Local school systems for capital or other non-recurring expenditures, and for school security.
• Four year colleges for research.

How much revenue is the legislation expected to raise?

A total of $802 million to $1.011 billion. That includes:

• $298 million to $422 million from the casinos
• $10 million from sports betting
• $194 million from the lottery
• $300 million from a compact between the state and the Poarch Band of Creek Indians.

How would the casinos and sports betting be taxed?

Casinos would pay a tax rate of 24% on net revenues from casino games. Sports betting companies would pay a 17% tax on net revenues.

Where would the state revenue from casinos and sports betting go?

Revenues from the casinos would go to a reserve account for the state General Fund until that account reaches a balance of $300 million (it is currently at about $150 million).

Aside from that, most of the money from the casinos and from sports betting would go to a Gaming Trust Fund.

The Gaming Trust Fund would pay the operating expenses for the Alabama Gaming Commission. After that, revenues from the Gaming Trust Fund would go to non-recurring, non-education expenses determined by the Legislature in annual appropriations bills.

Those expenses could include, but would not be limited to:

• Mental health care and services for the developmentally disabled.
• Rural health care and health benefit plans for adults and parents whose incomes are low enough to qualify.
• Roads, bridges, and other infrastructure in counties and municipalities.
• Bonuses for state employees and retirees and education employees and retirees.
• The establishment of drug courts, veterans courts, and other court programs for deferred prosecution.

Gov. Kay Ivey said during her State of the State address Thursday night that she supports the legislation because she said it’s time that voters had a chance to settle the issue.

The Legislature returns Tuesday. House Speaker Pro Tem Chris Pringle, R-Mobile, said the House could consider the legislation as early as next Thursday.