Alabama Moves Forward with Gambling Bills, Excluding Sports Betting

Alabama lawmakers have made strides in the realm of gambling legislation with the passage of HB151 and HB152. Originally, HB151 intended to legalize both retail and online sports betting alongside a state lottery and casinos in certain regions with bingo-style games. However, the amended version of HB151, which excludes sports betting, managed to secure enough votes for advancement, alongside the passage of HB152.

The revised bills maintain the inclusion of a state lottery and propose the formation of a gaming commission to oversee gambling activities. Moreover, they empower the governor to negotiate a compact with the Poarch Band of Creek Indians (PBCI) to regulate gaming on tribal lands, where the PBCI currently operates three casinos.

The legislation now heads to the House of Representatives. If approved, a public vote scheduled for September 2024 will determine the final fate of the legalization efforts. However, if the House doesn’t fully endorse the amendments, the bills will undergo further negotiation in a conference committee.

The bills permit pari-mutuel wagering at four racetracks and an additional site in Greene County. Furthermore, two existing bingo halls would be authorized to offer pari-mutuel wagering. Additionally, the PBCI would be allowed to conduct casino-style games, sports betting, and bingo on tribal lands.

While expectations initially estimated a potential revenue of $1.2 billion from expanded gambling, the removal of casino provisions means the state could miss out on approximately $315 million to $492.2 million in net gaming revenue. Despite the exclusion of sports betting, the legalization of the lottery is anticipated to generate between $305.6 million and $379.4 million annually in net revenue.