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) have had a tumultuous journey in Alabama. Initially, in 2016, the state’s Attorney General, Luther Strange, declared DFS illegal, forcing major operators like FanDuel and DraftKings to cease operations. However, in early June 2019, Alabama legalized DFS after the state legislature passed a bill in mid-May, which was signed by Governor Kay Ivey. This legislation marked a significant shift, allowing residents to participate in DFS legally.
The new law includes a unique aspect where players must be at least 19 years old, and college sports are not off-limits. This means residents can build rosters around local college teams like the Crimson Tide football team. The legislation also introduced a tax amendment, increasing the tax on revenue for operators from 8% to 10.5%, expected to generate approximately $4 million annually for the state.
Operators with over $10 million in nationwide revenue must pay an annual fee of $85,000, while smaller outlets pay a minimal fee of $1,000. Major operators like FanDuel and DraftKings are expected to re-enter the Alabama market enthusiastically. This legalization aligns Alabama with other states that have embraced DFS, contributing to the growth of daily fantasy sports in America.
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
Legal sports betting in Alabama faces numerous challenges. Despite multiple efforts, sports betting remains illegal in the state. In 2024, State Senator Greg Albritton and Governor Kay Ivey proposed legislation to legalize online sports betting, but lawmakers removed it from the bills, focusing only on the state lottery. Both bills, HB 151 and HB 152, failed to pass.
Opposition to sports betting in Alabama comes from various groups. Religious conservatives and those concerned about problem gambling have been vocal opponents. Additionally, there are concerns about the potential for increased gambling addiction, especially with online sports betting. Dr. Lia Nower from Rutgers University highlights that online sports wagering can lead to higher rates of problem gambling.
Economic arguments also play a role in the debate. Supporters argue that Alabama is missing out on significant tax revenue that neighboring states like Mississippi and Louisiana are already benefiting from. However, the state remains cautious, and the future of legal sports betting in Alabama remains uncertain.
Off-Track Betting and Its Regulation
Off-track betting, another component of Alabama’s gambling scene, allows residents to wager on horse and greyhound races from venues outside the racetracks. This form of betting is regulated to ensure fairness and to prevent illegal activities associated with gambling.
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.