Alabama Legislators Consider Gambling Regulation

Alabama House Speaker Nathaniel Ledbetter (l.) said he’ll propose legislation to regulate gambling prior to legalizing a state lottery, although a lottery could generate up to $300 million in annual tax revenue.

Alabama Legislators Consider Gambling Regulation

Alabama House Speaker Nathaniel Ledbetter and state Rep. Andy Whitt said in the 2024 session they’ll propose a measure establishing a gambling regulatory body to fight back against the rise of illegal gaming activities in the state.

According to Yogonet, Whitt said, “When a person can walk into a convenience store that is only a few blocks from our state’s Capitol and purchase a scratch-off ticket, then yeah, we have a big problem.” He said confusion among local law enforcement officers about what is or is not permitted makes it clear more regulation is needed.

Ledbetter noted 77 illegal operators in Jefferson County alone, and 14 bingo facilities have been shut down this year alone. He said in Walker County a gambling operation was closed following a drug overdose. However, the state lacks the resources required to address the problem, Ledbetter said. “We have to fix this. It’s no longer about gaming, but fixing the problem we got. We are losing the battle. We don’t have the manpower to shut down the illegal operations. They’ve been found in thrift shops, grocery store, fabric stores. It’s unbelievable,” he said, per Yogonet.

An advocate for a state lottery, Ledbetter noted Alabama is one of only five states without a lottery, which analysts said could generate $200 to $300 million in annual tax revenue. Allowing a lottery would require a constitutional amendment. Several supporters of a lottery also want to legalize casinos and sports wagering. However, Ledbetter said gambling regulation and enforcement must come before a vote on a lottery; the last time that happened was nearly 25 years ago.

Groups like the Alabama Citizens Action Program (ALCAP), representing more than 3,500 churches, argue illegal gambling is not extensive enough to justify creating a new regulatory body.

ALCAP President Greg Davis said, “Yes, illegal gambling does take place. But will legalizing some forms of gambling automatically stop all forms of illegal gambling? Of course not. Gambling operators who are currently breaking the law, and those who allow it to happen, will likely continue to do so.”