The much-anticipated legislative debate in Alabama appears to have been reignited following the submission of two competing proposals to legalize sports betting ahead of the impending congressional deadline.
Perhaps most notable was House Bill 490, filed by Rep. Jeremy Gray. This bill was referred to the House Committee on Economic Development and Tourism with the aim of creating an Alabama Gaming Commission, legalizing sports wagering, electronic games of chance, and implementing a new state lottery.
Alabama still remains one of just five US states without its own lottery. A key argument weaponized by proponents of broader gambling legislation is the state-level economic benefit that legalized wagering can bring. States such as New York generate substantial tax revenue from betting, and advocates strongly believe a robust legal system significantly reduces the likelihood of consumers opting for offshore bookmakers, which are not regulated by the state and as such, lack adequate consumer protection measures.
The bill intends to introduce a 10% tax on sports betting revenue. Of the tax generated, 40% would go to the General Fund, 40% to the Education Trust Fund, and the remaining 20% to a newly created NIL (Name, Image, Likeness) Trust Fund for high school athletes.
Despite the fact that five Democrats are backing HB 490, Alabama’s House leadership insists that gambling legislation must originate in the Senate – primarily because a similar House-led proposal was rejected by the upper chamber only last year.
This dynamic has embodied the state’s struggle to progress a sports betting agenda, creating an uneasy political tug-of-war as the legislative session races toward its May 15 deadline.
In the Senate itself, veteran Republican lawmaker Greg Albritton brought about a far broader proposal that inserted a constitutional amendment for a state lottery and bid to expand tribal gaming and sports betting. The senator also plans to tax gambling at 24%, which would include excise taxes on gaming machines and individual wagers.
Albritton’s bill would incorporate legislation authorizing electronic gambling at six locations and require a compact with the Poarch Band of Creek Indians for tribal casinos in an attempt to bring a unified gambling structure to the state.
In spite of the Republican’s proactive solutions, Albritton has admitted his bill still lacks the support needed to progress. “We’re closer than we want to admit,” Albritton told Alabama Daily News. “But it’s easier not to make a decision… why stick your head out of the trench if you don’t have to?”
Senate Majority Leader Steve Livingston was decidedly less optimistic, noting that the Senate lost a key vote after Sen. Reed’s resignation in November, which, in all likelihood, has reduced last year’s 20 votes to just 19.
Should Albritton’s proposal reach the 21-vote threshold needed before May 15, then the issue could reach the public referendum in a September 16 special election, something Gov. Kay Ivey fully supports. However, without the required votes in the Senate, it’s unlikely the bill will make the ballot until at least 2026.
Notwithstanding the public interest in passing a motion and the mounting pressure from industry lobbyists, with just 12 session days remaining and countless major budget issues still to be resolved, it would appear that Alabama lawmakers are going to give up the fight—for now.
