Alabama Sports Betting Hopes Dashed For Now By State Senate

The push for a legal sports betting platform in Alabama was gaining momentum, raising expectations that the state might soon have access to top sports betting sites. However, those hopes were dashed this week by the Alabama Senate Tourism Committee, putting the platform’s future in doubt.

The state’s House of Representatives introduced and passed two legal sports betting Bills in February. The comprehensive sports wagering bills were also favorably viewed by Alabama’s Economic Development Committee.

HB 152 and HB 151 were introduced to lay the groundwork for a constitutional amendment that would allow voters to decide on the implementation of a comprehensive gambling industry, including a legal sports betting platform, on the Nov. 5 election ballot.

In her recent State of the State address, Governor Kay Ivey, a Republican, brought up the idea of allowing voters to weigh in on the potential legalization of sports betting.

Ivey expressed her hope that when Alabamians head to the polls this year, they will also have the opportunity to vote on the issue of gaming. She believes that the current proposal being considered by the Legislature is beneficial for the state, as it will address illegal gambling and regulate limited forms of legal gaming, such as a statewide lottery. Ivey commended Speaker Ledbetter and his team for their efforts on this issue and urged Alabama voters to voice their opinions on the matter.

What the Bills entailed

The Alabama House of Representatives introduced and approved a comprehensive gambling bill that would establish an Alabama Gaming Commission to oversee both retail and online sports betting in the state. The bill also included provisions for a new state lottery, in-person casino games, raffles, and paper bingo.

Only with voter approval of the necessary constitutional amendment would up to 10 casinos be allowed to be created in the state.

The Alabama legal gambling industry was projected to generate between $635 million and $913 million in revenue, with a significant portion coming from sports betting.

But…

The Alabama Senate Tourism Committee gave their input this week on the Bills that were passed by the House. The Committee decided to advance the Bills but removed the sections related to sports betting from the legislative proposals.

The quantity of physical casinos and online sports betting options has also decreased. The revised Bills would allow for up to three tribal casinos, a fresh state lottery, parimutuel wagering, as well as horse and dog racing.

The Tourism Committee explained that the legislation had to be significantly reduced in order to have a chance of passing both the Senate and House. In the state, a constitutional amendment requires three-fifths support from legislators. There were doubts about whether the original plan, which included sports betting, would have received enough support.

Senator Greg Albritton, one of the authors of the amended Bills, explained that the reduced package was necessary because they did not have enough votes to incorporate everything from the original House version. They had to make adjustments in order to pass the legislation.

What’s next?

The revised Bills will proceed to the Senate floor for consideration. If they are approved, the Bills without sports betting will be returned to the House. It is uncertain how lawmakers who previously supported a comprehensive plan by wide margins will react to the new version that excludes the sports betting component.

It appears that Alabama sports betting is at a standstill, with the House and Senate unable to reach a consensus on the issue. This lack of agreement could derail the prospects of a comprehensive legal gambling system being implemented in the state in the near future.

The state can only vote on a constitutional amendment every two years during an election cycle. If there is no referendum on the 2026 ballot, Alabama may have to wait until 2026 or later to potentially legalize sports betting.