In February, Alabama lawmakers made significant strides in reshaping the state’s gambling landscape with the passage of bills HB151 and HB152.
Originally, HB151 aimed to introduce a comprehensive gambling overhaul, including legalizing retail and online sports betting, establishing a state lottery, and authorizing casinos in select areas already hosting bingo-type games.
Its counterpart, HB152, was designed to set up a state lottery and gaming commission to oversee gambling activities within Alabama.
However, HB151 encountered obstacles in the Senate, leading to the exclusion of sports betting and casino provisions from the bill.
Despite these modifications, HB151 successfully passed with a 22 to 11 vote, just achieving the minimum 21 votes needed to progress.
HB152 also received approval, maintaining the proposed state lottery in both bills.
These legislative pieces propose the establishment of a lottery and grant the governor the authority to negotiate gaming regulations with the Poarch Band of Creek Indians (PBCI), who operate Alabama’s three casinos.
Senator Greg Albritton emphasized the importance of these changes, suggesting they would allow Alabama to gain “control” over its gambling sector.
The next step for the legislation is consideration by the House of Representatives. If it passes, Alabama voters will have the opportunity to ratify the gambling legislation in a September 2024 referendum.
Should the House reject any amendments, the bills will be subject to a conference committee to reconcile differences.
The bills advocate for the legalization of pari-mutuel wagering, with proposed taxation rates ranging from 24% to 32%, at four racetracks across the state and an additional location in Greene County.
Two bingo halls could also offer pari-mutuel wagering under this legislation.
The PBCI would be allowed to host casino-style games, sports wagering, and bingo on their lands.
Financial forecasts suggest the lottery could generate between $305.6 million and $379.4 million annually.
However, the exclusion of casino gambling could result in a loss of $315 million to $492.2 million in net gaming revenue (NGR), with sports betting’s omission potentially missing out on an additional $15 million to $41.5 million in NGR.
Representative Chris Blackshear had earlier projected that expanded gambling could contribute up to $1.2 billion to the state’s finances, with $300 million potentially stemming from a compact with the PBCI.