Alabama legislature passes measures for casinos, lotteries, and sports betting

Alabama Gambling Legislation Stalls in Senate, Leaving Future Uncertain

Alabama's gambling legislation, as outlined in House Bills 151 (HB 151) and 152 (HB 152), has encountered a roadblock in the state Senate. As of mid-2025, significant components such as sports betting and iGaming have been removed from the bills [1].

Initially, both bills aimed to establish a gaming commission, introduce online sports betting, permit seven casinos, and establish a state lottery. However, following the Senate's amendments, the Alabama House rejected these changes and appointed a conference committee to resolve differences [1]. Unfortunately, the conference committee's proposal failed in the Senate by a single vote, indicating no current legislative agreement on the comprehensive gambling framework [1].

In its current form, HB 152 focuses on creating a state lottery, permitting tribal compact negotiations, and allowing pari-mutuel wagering [1]. The bills propose a tax rate of 24% for casino-style gaming [2], but specific details about tax rates and revenue projections for gambling have not been finalized or disclosed [1][4].

Despite the stalled bills, provisions for the establishment of regulatory bodies have not been completely abandoned. HB 152 originally included provisions to create a gaming commission to oversee gambling activities in Alabama. Although the comprehensive gambling bill failed, the Senate-passed version still calls for the creation of a lottery and allows for tribal gambling compacts and pari-mutuel wagering [1].

It is worth noting that the proposed Alabama Gaming Commission, as outlined in HB 152, would play a crucial role in overseeing wagering activities [3]. The commission would be responsible for combating illegal wagering, among other duties.

In terms of revenue distribution, a significant portion of the revenue from casino-style gaming, as per HB 152, will be directed towards a gaming trust fund, with 95% of the revenue allocated for it [2]. The state's gaming trust fund aims to allocate some funds for mental health care and support law enforcement [5]. Furthermore, the proposed legislation states that the gaming trust fund will also receive a portion of the sports betting revenue.

Despite the setbacks, the Alabama House has approved bills for lottery, casinos, and sports betting [5]. However, no new comprehensive gambling legislation has advanced in Alabama’s 2025 session [1][4][5]. The Senate's priorities have shifted to other policy areas, casting doubt on the near-term prospects of advancing gambling legalization or expanding casino gambling.

Lastly, House Bill 151 allows voters to decide on gambling matters in November [1]. The outcome of this vote could potentially reignite the discussion on comprehensive gambling legislation in Alabama.

References: [1] Alabama Political Reporter. (2025, May 10). Alabama gambling bills stall in the Senate. Retrieved from https://alreporter.com/2025/05/10/alabama-gambling-bills-stall-in-the-senate/ [2] AL.com. (2025, February 12). Alabama House approves bills for lottery, casinos, and sports betting. Retrieved from https://www.al.com/news/2025/02/alabama-house-approves-bills-for-lottery-casinos-and-sports-betting.html [3] WSFA 12 News. (2025, April 15). Alabama House passes lottery bill, sends it to Senate. Retrieved from https://www.wsfa.com/2025/04/15/alabama-house-passes-lottery-bill-sends-it-senate/ [4] Yellowhammer News. (2025, May 12). Alabama gambling bills stall in the Senate. Retrieved from https://www.yellowhammernews.com/alabama-gambling-bills-stall-in-the-senate/ [5] Montgomery Advertiser. (2025, May 11). Alabama gambling bills stall in the Senate. Retrieved from https://www.montgomeryadvertiser.com/story/news/2025/05/11/alabama-gambling-bills-stall-senate-sports-betting-igaming/7192716001/

The initial bills proposed in Alabama, HB 151 and HB 152, aimed to introduce sports betting, alongside other gambling trends such as casino-and-gambling, into the state's legislation.
Despite the current stalemate in the Senate, the Alabama House has approved measures for lottery, casinos, and sports betting, indicating a potential future for sports betting in Alabama.