In February, Alabama lawmakers advanced two gambling bills, HB151 and HB152. Originally, HB151 aimed to legalize both retail and online sports betting, along with establishing a state lottery and casinos in regions hosting bingo-style games. However, the bill encountered obstacles in the Senate, resulting in the removal of provisions for sports betting and casinos. The revised HB151 was passed by a vote of 22 to 11 on Thursday, surpassing the necessary 21 votes for progression. Simultaneously, HB152 was also approved.
The revised bills still encompass a state lottery and would empower the governor to negotiate a compact with the Poarch Band of Creek Indians (PBCI) to regulate gaming activities on tribal territories. The PBCI operates three casinos in Alabama.
Senator Greg Albritton has indicated that the modifications were essential for Alabama to establish control over its gambling sector. The bills will now be presented to the House of Representatives. If approved there, state voters will have the opportunity to approve the legislation in a referendum scheduled for September 2024. Conversely, if the House does not accept all amendments, the bills will progress to a conference committee for further negotiation.
The bills include provisions for legalizing pari-mutuel wagering, which would have a tax rate ranging from 24% to 32%. This form of wagering would be allowed at four racetracks in Alabama, as well as at an additional site in Greene County. Two existing bingo halls would also be allowed to offer pari-mutuel wagering.
Furthermore, the PBCI would be authorized to operate casino-style games, offer sports wagering, and maintain bingo activities on tribal lands.
Financial projections previously suggested that expanded gambling could yield approximately $1.2 billion for the state. According to fiscal notes from HB152, legalizing the lottery could generate between $305.6 million and $379.4 million annually in net revenue. However, the exclusion of casino provisions may result in an estimated loss of $315 million to $492.2 million in net gaming revenue for the PBCI. The initial plan for sports betting was projected to bring in between $15 million and $41.5 million in net gaming revenue. Representative Chris Blackshear had previously mentioned that expanded gambling could contribute as much as $1.2 billion to the state’s economy, with $300 million expected from a compact with the PBCI.
