Alabama Lottery
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About the Alabama Lottery
Alabama does not currently have a lottery. The state is one of only a few in the United States without lottery games.
Over the years, state legislators have proposed various bills to establish a lottery and expand gambling in Alabama. These proposals have typically included plans for a state lottery along with provisions for casinos, sports betting, and other forms of gaming. The proposed lottery systems have generally directed revenue toward education funding, including programs like scholarships and pre-kindergarten initiatives.
Despite multiple attempts, lottery legislation has not yet gained enough support to pass in the state legislature. The proposals have required constitutional amendments, which need approval from both lawmakers and voters through a statewide referendum. So far, none of these measures has completed that process.
The possibility of establishing an Alabama lottery remains a hot topic of discussion among state officials. For now, Alabama remains without a state lottery, and residents who wish to play lottery games must travel to neighboring states that offer them.
FAQs
Not currently. Alabama is one of just five states in the U.S. that doesn’t have a state lottery. The other lottery-less states are Alaska, Hawaii, Nevada, and Utah.
The Legislative Services Agency estimates the Education Trust Fund and the scholarship program would each receive about $118 million a year from the lottery.
Ticket sales would first cover the cost of prizes and lottery operating expenses. At least 0.5% of sales proceeds would go to programs to help compulsive gamblers. A portion of unclaimed prize money would go to a grant program for agriculture. Lottery funds would also be used to lower the state sales tax on groceries from 4% to 2%.
The remaining proceeds would go into an education fund benefitting K-12 schools as well as colleges, and a scholarship program for community college students. It would also include a loan forgiveness plan for students who work in high-demand fields.
The proposed bill includes Pick-3, Pick-4, Powerball, Mega Millions, and scratch-off games.
The legislation sets up a seven-member gaming commission. The members would be appointed by state leaders. The commission would issue licenses to operate casinos and would regulate the state lottery. Additionally, the commission would be required to file annual reports detailing gambling revenue.
The gambling package did not pass in the most recent legislative session, but it could potentially be revived and come to a vote in a special session or early next year. If it’s passed by the legislature, it will become a ballot measure for voters to consider in November 2022.
