The Alabama Legislature is currently reviewing a proposal aimed at introducing sports betting, a state lottery, and casinos.
State Representatives Chris Blackshear and Andy Whitt have put forward House Bill 152, legislation designed to regulate and tax sports gambling, establish an Alabama state lottery, and permit casino gaming at retail locations throughout the state.
The bill also proposes the establishment of the Alabama Gaming Commission to oversee sports and casino gaming, alongside the Alabama Lottery Corporation to manage the state lottery. A Gaming Enforcement Division responsible for overseeing gaming activities and combating illegal betting has also been proposed in the bill.
The legislation sets out a 24% tax on net revenues from casino gaming, with the majority of these funds directed to a gaming trust fund, and a portion allocated to both the General Fund Budget Reserve Fund and local gaming establishments.
The bill also details taxation for both retail and online sports betting in Alabama – at a rate of 17%, with the majority of these revenues supporting the gaming trust fund and a percentage distributed among Alabama’s county commissions for law enforcement purposes. Lottery proceeds are intended for the Lottery for Education Fund to enhance educational resources across the state.
Retail Casinos Proposed
House Bill 152 allows for a retail casino operated by the Poarch Band of Creek Indians and offers up to six other gaming licenses to establishments across selected counties. Prospective operators must be prepared to make a minimum investment of $35 million in their properties and pay a license fee of $5 million for a 15-year term, with options for renewal given substantial further investment.
This legislative effort follows Governor Kay Ivey’s expression of support for casino and lottery initiatives, highlighting a desire to let Alabama residents vote on these issues to address illegal gambling. The state reportedly hosts numerous unauthorized gaming operations.
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An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.