The Alabama Senate has begun debate on gambling legislation that would create a state lottery and allow historical horse racing (HHR) machines at seven locations, including dog racetracks.
The bill also would also require the governor to negotiate a compact with the Poarch Band of Creek Indians, which could eventually allow the tribe to operate Class III casinos with table games at its casinos in Wetumpka, Montgomery and Atmore.
The bill is a scaled-down version of a proposal passed by the House that would have allowed sports betting and up to 10 casinos statewide. If the measure passes the Senate, it will return to the House due to the changes to pass the legislation, it will necessitate a return to the House to review the changes made by the Senate.
A conference committee may be convened if an agreement can’t be reached regarding the two versions. If the constitutional amendment is approved by a three-fifths majority in the Senate—21 out of 35 Senators—a voter referendum would be held on September 10. Voters rejected a lottery, proposed by then-Governor Don Siegelman, in 1999. Alabama remains one of the few states without a lottery. Analysts estimated a lottery could generate $350 million in annual revenue.
State Senator Greg Albritton, the bill’s sponsor in the Senate, said the legislation was changed from the House version to gain enough votes for passage.
According to Yellowhammer News, he said, “We have been working feverishly on trying to develop a consensus. We have gone through two or three different versions. We met today and had other gatherings, some that I will term adult in nature. We think we have a consensus.”
The proposed legislation also would establish the Alabama Gaming Commission (AGC), with an enforcement division, to streamline gambling regulation and taxation. It also would concentrate gambling activities in specific counties and locations and repeal local constitutional amendments. Gambling would be limited to the racetracks in Greene, Jefferson, Macon and Mobile counties, plus an additional location in Greene County and existing bingo halls in Houston County and Lowndes County.
In addition, the bill would allow parimutuel betting on simulcast races along with betting on HHR machines. Electronic bingo and traditional casino games would not be permitted. Parimutuel wagering would be taxed at a rate between 24 percent and 32 percent as determined by the AGC.
Per AL.com, Albritton said, “Those are the things that we’re trying to get started with and capturing that, controlling it, regulating it, getting the enforcement division set up and doing our job as a state to control this industry.” He stated revenue from the lottery and other gambling activities would go to the state General Fund until March 30, 2029. After that, revenue would be divided equally between the education budget, the General Fund and infrastructure projects.
In 2021 and 2022, the Alabama Senate passed a bill that included casinos and sports betting but was rejected by the House. Large turnover in the Senate last year led to the current reversed positions.
