Alabama Could Be on the Verge of Passing Sports Betting Legislation

The notion that the Alabama state legislature has been considering retail/online sports betting and casino gambling legislation is not a surprise. The speed at which said legislation could be passed is quite a surprise.

Representatives Andy Whitt and Chris Blackshear are co-sponsors of HB 151 and HB 152, bills that set the guidelines for retail and online sports betting as well as casino gambling in Alabama. Both men are serving on the House's House Economic Development and Tourism Committee with Whitt acting as the committee's chair. In a committee meeting held on February 14, 2024, both bills were discussed and passed by a majority voice vote.

Both bills will now proceed to the House where a full vote is expected to be held very soon. While there is plenty of opposition to these bills, the presumption is they will clear the House with only minor amendments. Assuming that happens in the next week or so, the bill would move to the Senate for discussion and a possible vote. It's not clear which direction the Senate might be leaning in regards to comprehensive retail sports and online gambling legislation.

On a side note, the legislation's key opposition comes from the Poarch Band of Creek Indians (PCI). The Tribe is known to have a major vested interest in the future of Alabama's retail casino community. Understandably, they would oppose any legislation that would adversely affect the Tribe's revenue stream at risk.

What's in HB 151 and HB 152?

HB 151 seeks to amend the state of Alabama's Constitution to allow for casino-style games, sports wagering, and a state-education lottery. HB 152 serves to provide the proper implementation language. If both bills pass the House and Senate, voters will get to vote on the bills during the November 2024 election cycle.

Here are some of the key guidelines on these bills combined:

• The Alabama Gaming Commission and Alabama Lottery Corp would be established as regulatory bodies
  
• Seperate licenses would be required for retail and mobile sports betting operators
  
• The sports betting tax rate on gross revenue would be pegged at 17%
  
• Sports betting license fees and number of licenses would be determined by the Alabama Gaming Commission
  
• Offer licensing for up to ten (10) new retail casinos to be developed
  
• Retail casino licenses would be valid for 15 years
  
• The casino gaming tax rate would be pegged at 24% of gross revenue
  
• The Governor would be designated to negotiate a new gaming compact with the PCI
  

How This Would Affect Alabama's Finances

It is no secret that most states were willing to pass sports betting legislation as a means of raising tax revenue to go into their respective coffers. It's no different in Alabama.

According to the Alabama Legislative Services Agency, the aforementioned gambling expansion bills would ultimately lead to tax revenue between $935 million and $1.21 billion.

Will the bills get voter approval? It's noteworthy that voters did reject a lottery gaming expansion bill in 1999. However, time has likely changed the minds of conservative voters.