Written by: Rhianna Padman | 
Fact-checked by: James Whitelock Updated September 5, 2024 | 
24 min read
In recent years, Alabama has witnessed significant shifts in its stance towards gambling, encompassing a variety of forms such as tribal casinos, daily fantasy sports, historical horse racing, greyhound racing, and off-track betting. This article delves into the current landscape of gambling in Alabama, highlighting the changes, economic impacts, and the ongoing debates surrounding this complex issue.
Introduction to Alabama’s Gambling Legislation
Gambling in Alabama has been a contentious issue, with numerous legislative attempts to either introduce or expand gambling options within the state. Historically, Alabama’s constitution banned most forms of gambling; however, local amendments have allowed certain types of betting, such as electronic bingo in specific counties.
Tribal Casinos and Their Economic Impact
One of the pivotal aspects of gambling in Alabama involves the tribal casinos operated by the Poarch Band of Creek Indians. These facilities, which currently offer electronic bingo, represent a significant portion of the gambling landscape. The tribe has been a key player in negotiations concerning the expansion of gambling, which could potentially include more traditional casino games like slots and table games.
Expansion of Gambling Options
Recent legislative efforts have aimed to broaden the scope of legal gambling in Alabama. These include proposals for a state lottery, sports betting, and the licensing of additional casinos. The introduction of House Bills HB 151 and HB 152 marked a historic move towards establishing a regulated gambling framework in the state.
Daily Fantasy Sports and Sports Betting
Daily fantasy sports (DFS) in Alabama have a unique history marked by legal changes and regulatory developments. Initially, DFS was banned in 2016 after Attorney General Luther Strange deemed it illegal gambling. However, in 2019, new legislation legalized and regulated DFS, allowing companies like FanDuel and DraftKings to operate. This law, known as the Fantasy Contests Act, requires operators to register with the Office of the Attorney General and adhere to consumer protection regulations. Operators must also pay a 10.5% tax on in-state revenue. Players must be at least 19 years old to participate and are responsible for paying state and federal taxes on their winnings. The law also introduced changes to pick ’em contests, requiring adjustments to eliminate projections on individual athletes’ stats. Despite these regulations, the Attorney General’s website does not list registered DFS sites, so users must choose where to play carefully. The legalization of DFS in Alabama reflects a broader trend of states reevaluating the classification of fantasy sports, balancing between skill and chance.
Historical Horse Racing and Greyhound Racing
Historical horse racing, which allows bets on replays of past races, and greyhound racing have also been part of Alabama’s gambling offerings. The state has several racetracks that facilitate these forms of betting, contributing to the local economy and providing entertainment options for residents.
While greyhound racing is legal in Alabama, the last live race was held in March 2020. Simulcast betting on greyhound races is legal in the state. West Virginia is the only state that hosts live greyhound racing.
Challenges and Controversies
Alabama faces significant challenges in legalizing sports betting, primarily due to strong opposition from religious conservatives and concerns about gambling addiction. Despite the popularity of events like March Madness, sports betting remains illegal in the state. Efforts to legalize it have been met with resistance, as seen in the failure of House Bill 151, which aimed to modernize the gambling framework. The bill was gutted in the Senate, leaving only a lottery provision intact. Advocates argue that Alabama is missing out on potential tax revenue, especially as neighboring states like Tennessee and Mississippi benefit from legalized wagering. However, concerns about the mental health impacts of gambling and the targeting of minors by online betting companies persist. As legislative efforts continue, sports enthusiasts hope for progress, but current restrictions force them to seek alternatives outside state lines. The debate over sports betting in Alabama highlights the tension between economic opportunities and moral considerations, making it a complex issue for lawmakers to navigate.
Off-Track Betting and Its Regulation
Alabama offers a unique landscape for horse racing enthusiasts, primarily through off-track betting (OTB) options. Despite the state’s rich history in horse breeding, there is no live horse racing currently available. Instead, fans can engage in simulcast racing, which allows them to watch and wager on races from various locations. This setup is facilitated by several greyhound racing sites within the state, providing a convenient alternative for those interested in horse racing. Simulcast wagering is available at four main locations in Alabama. These include the Birmingham Greyhound Racing, Mobile Greyhound Park, Victoryland Greyhound Park in Shorter, and Greenetrack in Eutaw. Each of these venues offers a mix of live greyhound racing and simulcast horse racing, ensuring that fans have access to a wide range of betting opportunities. For instance, Birmingham Greyhound Racing provides simulcast wagering for thoroughbreds and harness racing from over two dozen North American tracks. Online racebooks have become a popular choice for Alabama residents, offering the flexibility to place bets anytime and from anywhere. These platforms often provide bonuses and promotions, such as weekly or daily cash back, enhancing the betting experience. Bovada’s racebook is one such example, offering unique opportunities for future bets on major global races like the Epsom Derby and the US Triple Crown races. While Alabama lacks live horse racing, the state has considered legislation to establish a statewide horse racing commission. This would formally authorize advance deposit wagering and expand other legal gambling options. Despite the absence of live races, Alabama’s approach to horse racing betting aligns with states like Mississippi, where simulcast betting is prevalent. This setup allows residents to engage with horse racing without attending live events, providing a viable alternative for enthusiasts.
Conclusion: The Future of Gambling in Alabama
As Alabama continues to navigate the complexities of legalized gambling, it faces both opportunities and challenges. The potential economic benefits, including job creation and increased tax revenue, must be weighed against the social risks and regulatory hurdles. The outcome of ongoing legislative efforts will significantly shape the future of gambling in Alabama, influencing not only the economic landscape but also the social fabric of the state.
In summary, the evolution of legalized gambling in Alabama is a dynamic and multifaceted issue, reflecting broader trends in societal attitudes towards gambling and economic development. As the state moves forward, it will be crucial to balance economic benefits with social responsibilities to ensure a sustainable and equitable gambling industry.