Alabama Drops Sports Betting & Casinos But Allows Lottery In Revised Bill

The Alabama Senate committee has approved a revised version of gambling legislation that includes the authorization of a state lottery while excluding provisions for sports betting and full-scale casino games. This decision marks a significant departure from the previous proposal put forth by the Alabama House, which sought to introduce sports betting and up to seven new casinos in addition to a lottery.

The newly approved version of the gambling legislation introduces several changes from the House-approved bill. One notable change is the adjustment of the date for voting on the constitutional amendment required to implement the proposed gambling measures. Instead of the previously planned November general election, the vote will now take place in a special election on September 10. This modification reflects the Senate’s effort to secure enough votes for the legislation’s passage.

Under the revised legislation, a gaming commission with an enforcement division will be established to oversee and regulate gambling activities in the state of Alabama. The primary objective of this commission is to consolidate and streamline the regulation and taxation of gambling, which is presently governed by a patchwork of local constitutional amendments. By centralizing the authority and control over gambling operations, the state aims to ensure fair and responsible practices.

The proposed legislation also includes provisions to repeal existing local constitutional amendments related to gambling and prevent the introduction of future amendments. Instead, gambling activities would be limited to specific locations, such as racetracks in Greene, Jefferson, Macon, and Mobile Counties, as well as existing bingo halls in Houston County and the town of White Hall in Lowndes County. These establishments would offer pari-mutuel betting on horse and dog racing through simulcasts, as well as betting on historical racing machines.

Another significant aspect of the gambling legislation is its potential impact on tribal lands. The proposed plan authorizes the governor to enter into negotiations with the Poarch Band of Creek Indians, a Native American tribe in Alabama. If a compact is reached, the tribe would be permitted to offer full-scale casino games at its casinos located in Atmore, Wetumpka, and Montgomery, which currently operate electronic bingo. This provision opens up possibilities for economic growth and collaboration between the state and tribal communities.

One of the key considerations in the gambling legislation is the allocation of revenue generated from gambling activities. According to the proposed plan, proceeds from the state lottery and other forms of gambling would be directed to the state General Fund until March 30, 2029. After this date, the revenue would be divided equally among the education budget, the General Fund, and investments in roads and bridges. This revenue distribution aims to support vital sectors of the state’s economy and ensure long-term benefits for Alabama residents.

Sports betting, which was initially included in the House-approved bill, has been removed from the revised legislation. This decision was primarily driven by concerns surrounding the potential negative impact of sports betting on young individuals. Lawmakers were particularly apprehensive about the potential for increased underage gambling. By excluding sports betting from the proposed plan, the Senate aims to prioritize the well-being and protection of Alabama’s youth.

Following the approval of the revised gambling legislation by the Senate Tourism Committee, the bill will proceed to the Senate for further consideration. To pass, the constitutional amendment included in the legislation will require a three-fifths vote in favour from the Senate, which amounts to 21 out of the 35 senators. Should the Senate approve the legislation, it will need to return to the House for approval due to the changes made by the Senate. If both chambers agree, the legislation will proceed for finalization through a conference committee that will seek to reconcile any discrepancies between the two versions.