Alabama lawmakers exploring proposal to regulate gambling in 2024 legislative session

Alabama House lawmakers are gearing up to revisit the idea of legalized gambling during the 2024 legislative session. Led by Republican Nathaniel Ledbetter, the House Speaker, and Representative Andy Whitt, the push explores developing strategies to establish a regulatory body aimed at combating the rise of illegal gaming activities in the state.

The discussion on regulating gaming in Alabama is not new. For over two decades, lawmakers have been trying to find a solution to this delicate matter. The current approach, unlike previous years, focuses less on legalizing gaming and more on controlling and regulating existing illegal activities.

Ledbetter and Whitt argue that creating a gaming commission is crucial to solving the problem and reducing illegal gambling. The idea is to regulate the sector, which already exists, only illicitly. "We have to fix this," stated Ledbetter following a speech before the Mobile Chamber on Thursday. "It’s no longer about gaming, but fixing the problem we got."

Nathaniel Ledbetter

However, this strategy faces opposition from anti-gambling groups like the Alabama Citizens Action Program (ALCAP), which represents over 3,500 churches and argues that the problem of illegal gambling is not extensive enough to justify the creation of a new regulatory body. They see the proposal as a "smokescreen" for the legalization of gambling.

“Yes, illegal gambling does take place,” Greg Davis, president of ALCAP, told AL.com. “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."

For his part, Whitt highlighted the seriousness of the illegal gambling problem in Alabama, noting that the state is rife with various forms of illicit gaming, including scratch-off games and slot machines. Confusion even among local law enforcement officers about what is permitted reinforces the need for clear regulation, the representative says.

“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,” Whitt said.

The problem of illegal gambling in Jefferson County is more extensive than imagined, according to statements from Nathaniel Ledbetter. As per the Alabama House Speaker, 77 illegal operators have been identified, with 14 bingo facilities being shut down this year alone. A concerning case occurred in Walker County, where a gambling den was closed following a drug overdose.

Ledbetter expressed frustration with the state's inability to contain these operations due to a lack of resources. “We are losing the battle,” he said. “We don’t have the manpower to shut down the illegal operations. They’ve been found in thrift shops, (grocery stores), fabric stores. It’s unbelievable.”

Meanwhile, a parallel issue arises with the proposal to legalize lottery in Alabama. Ledbetter and other advocates argue that legalization would allow the state to capitalize on financial resources currently lost, as many residents travel to neighboring states to buy lottery tickets.

Alabama, one of only five U.S. states without a lottery, could generate between 200 and 300 million dollars annually with the implementation of a state lottery, according to estimates. However, legalization is a complex topic that requires an amendment to the State Constitution and has been wrapped up in the debate over a comprehensive approach toward allowing gambling, including casinos and sports wagering.

Ledbetter emphasized the need to first address the enforcement of gambling before moving to a vote on the lottery. He proposed the creation of a gaming commission to regularize and oversee all gambling-related operations in the state. The last vote on the lottery in the state took place nearly 25 years ago.