Alabama Sports Betting Hopes Dashed For Now By State Senate

Momentum for a legal sports betting platform in Alabama had been heating up, leading some to believe that the Yellowhammer State may soon get access to our best sports betting sites. That was before the Alabama Senate Tourism Committee this week dashed the hopes of proponents of such a platform — for now.

In February, two legal sports betting Bills were introduced and passed by the state's House of Representatives. Alabama's Economic Development Committee also viewed the comprehensive sports wagering bills favorably.

HB 152 and HB 151 aimed to prepare for a constitutional amendment in which voters would be asked to weigh in on the possibility of a comprehensive gambling industry, including a legal sports wagering platform for their state, on the Nov. 5 election ballot. 

Even Republican Governor Kay Ivey mentioned the idea of voters having their voices heard on the possibility of sports betting in his recent State of the State address.

“This year, when Alabamians make their way to the ballot box, I hope they will be voting on another issue: Gaming,” Ivey said. “I believe the current proposal being contemplated by the Legislature is good for Alabama, and I will be carefully watching it move through the process. It will crack down on illegal gambling, and it will responsibly regulate limited forms of legal gaming, including a statewide lottery. Thank you to Speaker Ledbetter and his leadership team for their hard work on this. Now is the time for Alabama voters to have another say on this issue.”

What the Bills entailed

The Alabama House of Representatives presented and passed what was a comprehensive gambling Bill in the House. It would have given regulatory duties to a newly formed Alabama Gaming Commission and paved the way for retail and online sports betting in the state. A new state lottery, in-person casino-style games, raffles, and paper bingo would also be included in the Bills. 

Up to 10 casinos would be created if, and only if, voters in the state approved the necessary constitutional amendment. 

Between $635 million and $913 million in revenue was projected to come from an Alabama legal gambling scene, with sports betting making up a reasonable portion.

But...

The Alabama Senate Tourism Committee had its say this week after the Bills made their way over from the House. The Committee essentially moved forward with the Bills while omitting the sports betting sections from the legislative proposals.

The number of brick-and-mortar casinos and online sports betting skins has also reduced. Under the amended Bills, up to three tribal casinos, a new state lottery, parimutuel wagering, and horse and dog racing would be permitted.

The Tourism Committee cited the necessity of a Bill that could pass both the Senate and House as the reason for the severely pared-down legislation. Legislators in the state need three-fifths support for a constitutional amendment. There was uncertainty that the plan, including sports betting, would have gotten the necessary support.

“The reason for it, frankly, is we do not have the votes to get those incorporated here. So, what we have is a reduced package from what we received from the House to accommodate and to match what we can vote to get through,” Sen. Greg Albritton, one of the authors of the amended Bills said.

What's next?

The amended Bills will now head to the Senate floor for approval. If approved, the amended sports-betting-less Bills will be sent back to the House. It is unclear how legislators who had previously voted "Yes" on a comprehensive plan by a 70-32 vote and 67-31 vote, respectively, will receive the new Bill minus the desired sports betting element.

So, it looks like Alabama sports betting is back to square 1 or square 1.5. The lack of consensus among the House and Senate threatens to upend the possibility of a sweeping legal gambling platform in the state this year or next.

A constitutional amendment can only be voted on every two years in the state during an election cycle. If no question is posed to voters on the 2024 ballot, 2026 and beyond could represent Alabama's next chance to join the U.S. legal sports betting family.