Alabama Legislators Prepare for Sweeping Gaming Reforms

In Alabama, the prospect of major changes to the state's gambling landscape is causing quite a stir. Lawmakers are set to come together to deliberate on a comprehensive gaming bill that aims to address the contentious issue of gambling regulations within the state.

Alabama's constitution currently prohibits gambling, but it contains 18 constitutional amendments that allow specific forms of gaming in certain regions. The legality of these provisions has been a point of contention among officials for some time. However, the proposed legislation could finally bring clarity to the situation and broaden the range of betting options available while also implementing enhanced customer protection standards.

Governor Kay Ivey's 2020 Study Group on Gambling Policy Report suggests that legalized gambling could generate substantial revenue, potentially reaching up to $710 million annually. The proposed bill envisions a breakdown of this revenue with a state lottery contributing $200-300 million, casino gaming adding $300-400 million, and sports betting contributing $10 million. Taxes and fees collected under this legislation would be directed towards the Education Budget and the General Fund Budget.

Local news outlet 1819 News has reported that the upcoming bill may aim to repeal all 18 constitutional amendments related to gambling. Furthermore, the legislation intends to take a tougher stance against illegal gaming, elevating it from a misdemeanor to a felony offense with substantial financial penalties. Repeat offenders would also face harsher penalties.

The bill proposes allowing Class III gaming in specific areas through a competitive bidding process, effectively replacing existing constitutional amendments. These areas would include federally recognized tribal lands operated by the Poarch Band of Creek Indians, Birmingham, Macon County, Greene County, Lowndes County, Houston County, Mobile County, and an undetermined county in Northeast Alabama.

Each Class III gaming operation licensed by the commission would have the opportunity to apply for a sports gaming license. The commission would also issue sports gaming licenses not tied to a Class III gaming establishment, with provisions for online sports betting. While other forms of online gaming would remain prohibited, this represents significant progress.

Officials emphasize that this legislation would not legalize gambling in Alabama without the input of state voters. Instead, it aims to reduce the number of gambling establishments by cracking down on illegal gaming. To become law, the bill would require a three-fifths majority in both legislative chambers and a successful referendum, likely occurring during the November general election.