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
Alabama faces significant legal sports betting challenges that keep it among the most restrictive states in the country. Despite growing public demand and the national trend toward legalization, Alabama lawmakers have not been able to pass comprehensive gambling reforms. In 2024, the House passed a bill to legalize sports betting, casinos, and a state lottery, but the Senate removed these provisions, leaving only a lottery proposal that failed to gain enough support. As a result, sports betting remains illegal in all forms, and even a state lottery does not exist. Neighboring states like Tennessee and Mississippi have legalized sports betting, attracting Alabama residents and causing the state to lose out on potential tax revenue. Enforcement is difficult, with data showing hundreds of thousands of attempts by Alabamians to access legal sportsbooks in other states and millions of blocked attempts to use illegal online platforms. The main obstacles are moral concerns among lawmakers and fears about gambling addiction, even though regulation could provide financial benefits and consumer protections. For now, Alabama remains isolated as advocates prepare for future legislative efforts.
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 are legal and regulated in Alabama thanks to a law passed in 2019. Before this, the Alabama Attorney General declared daily fantasy sports illegal in 2016, causing major operators to leave the state. The 2019 law, known as the Fantasy Contests Act, allowed operators to return by requiring them to register with the state, follow consumer protection rules, and pay a 10.5% tax on revenue. All fantasy sports sites must register with the Office of the Attorney General and use strong integrity and safety protocols. Players must be at least 19 years old and physically present in Alabama to join contests. Popular platforms like Underdog Fantasy and Sleeper now operate legally, offering a wide range of sports and unique contest formats. Pick’em contests are also allowed, but operators must follow specific rules set by the Attorney General. Daily fantasy sports provide a skill-based, fast-paced alternative to traditional sports betting, which remains illegal in Alabama. Players should always use responsible gaming tools and consult tax professionals about winnings. The legal landscape can change, so it is important to check for updates before playing.
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 legal sports betting challenges that keep it among the most restrictive states in the country. Despite growing public demand and the national trend toward legalization, Alabama lawmakers have not been able to pass comprehensive gambling reforms. In 2024, the House passed a bill to legalize sports betting, casinos, and a state lottery, but the Senate removed these provisions, leaving only a lottery proposal that failed to gain enough support. As a result, sports betting remains illegal in all forms, and even a state lottery does not exist. Neighboring states like Tennessee and Mississippi have legalized sports betting, attracting Alabama residents and causing the state to lose out on potential tax revenue. Enforcement is difficult, with data showing hundreds of thousands of attempts by Alabamians to access legal sportsbooks in other states and millions of blocked attempts to use illegal online platforms. The main obstacles are moral concerns among lawmakers and fears about gambling addiction, even though regulation could provide financial benefits and consumer protections. For now, Alabama remains isolated as advocates prepare for future legislative efforts.
Off-Track Betting and Its Regulation
Off-track betting in Alabama gives horse racing fans several ways to enjoy wagering, even though the state no longer hosts live horse races. While live horse racing ended in the early 1990s due to low attendance and financial losses, residents can still bet on races held elsewhere through a network of off-track betting (OTB) facilities and online racebooks. The four main OTB locations in Alabama are Birmingham Race Course, Mobile Greyhound Park, VictoryLand, and Greene County Entertainment Center. These venues, originally built for greyhound or horse racing, now focus on simulcast wagering, allowing fans to watch and bet on races from across the country. Each OTB facility provides a unique experience for visitors. For example, Birmingham Race Course offers simulcast wagering daily from morning until late at night, and features amenities like a driving range and food service. Mobile Greyhound Park and VictoryLand also provide daily simulcast betting, with additional entertainment options such as poker rooms and casino gaming. Greene County Entertainment Center operates as a 24/7 casino and offers simulcast races from over 40 tracks, making it a popular spot for both horse and dog racing fans. In addition to physical locations, Alabama residents can legally place bets through major online racebooks. These platforms, such as TwinSpires and Bovada, are licensed in other states and accept Alabama customers. Online betting is not directly regulated by Alabama, but it is permitted under federal law, specifically the Interstate Horseracing Act of 1978. This means that while there is no state-level oversight, bettors can still access secure and reputable sites for wagering on major events like the Kentucky Derby or the Breeders’ Cup. The minimum legal age for betting on horses in Alabama varies by county, typically set at either 18 or 19 years old. Some counties also allow historical horse racing machines, but these are only legal where local commissions have approved pari-mutuel wagering. Lawmakers have considered bills to create a statewide racing commission and expand legal gambling, but as of now, no such body exists. Despite the absence of live racing, Alabama’s OTB system ensures that fans can still enjoy the excitement of horse racing. With both in-person simulcast options and a variety of online platforms, residents have access to a wide range of betting opportunities and can follow races from around the world. This combination of physical and digital access keeps the tradition of horse race betting alive in Alabama, even without local tracks.
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.