Alabama House approves bill authorizing sports betting, lottery, casinos

A gambling plan to authorize lottery, sports betting, and multiple casinos across Alabama cleared a major hurdle Thursday when the state House of Representatives approved a proposed constitutional amendment and a companion bill.

The House approved the amendment by a vote of 70-32. The proposal needed at least 63 votes (three-fifths of the House) to be passed. The plan also requires approval by voters to authorize the expansion of legal gambling. The legislation now moves to the Senate.

The proposal reached the full house vote after the Alabama House Economic Development and Tourism Committee greenlighted the two-bill package on Wednesday. 

If this year’s plan clears the Legislature, it will go before Alabama voters as a proposed constitutional amendment in the November general election, which will be the first public vote on gambling since a proposed lottery was rejected in 1999.

In Alabama, gambling legislation for the past 25 years has been stalled owing to a combination of opposition to legalized gambling and a turf war over who could get casino licenses. Lottery proposals since 1999 have become politically intertwined with the issue of whether to allow casinos.

The effort is led by Rep. Andy Whitt, R-Harvest, who chairs the House Committee on Economic Development and Tourism. Whitt’s committee largely approved the proposed bill on Wednesday with just one “no” vote, paving way for the full House vote.

In pushing the bill forward, Whitt and Rep. Chris Blackshear, R-Phenix City, have emphasized the importance of cracking down on existing illegal gambling in Alabama and the need to give people the right to vote on the bill. 

News agency AP cited Blackshear, who this week said: “In my opinion, this is the best piece of legislation put forward in a very long time to give the people the right to vote on if this is something they want in Alabama.”

Previous efforts have emphasized how the lottery would generate new money for education and revenues that could be generated through gaming. The bill also includes a fiscal note that details expected costs and revenues. WHNT retrieved the note, which shows estimated dollars that could be generated by gambling in Alabama:

A one-time $5 million fee, per license for seven casino licenses; Gaming revenue is estimated to be between $315 million to $492 million annually. In a lottery, where proceeds would be used for game operations and education, the estimated revenues are between  $305 million to $379 million per year. Sports betting revenue is estimated between $15 million and $41 million annually.

Proposal would authorize up to 10 casino sites in Alabama

The sweeping proposal would authorize up to 10 casino sites (including the three tribal sites operated by the Poarch Band of Creek Indians) with table games and slot machines, a state lottery, and would allow sports betting at in-person locations and through online platforms. 

The proposal includes a 7 percent payment of lottery sales to retailers, and 10 percent of sports betting revenue earmarked for the Alabama Sheriff’s offices. It would also bar members of a proposed Gaming Commission from having any ownership stake in a casino.

The legislation says the casino licenses will be put out for bid and includes a list of points that the commission can consider, including the applicant’s existing investment. Six of those casinos would be designated for these locations: Birmingham, Mobile County, Macon County, Greene County, Lowndes County, and Houston County. The seventh casino would be contingent on the state agreeing to a compact with the Poarch Band of Creek Indians.

Casinos would need the approval of the local government where they would be located, either a resolution passed by a city council or county commission, or approval by voters in a referendum, reports AL.com.

Gov. Kay Ivey, who supported the legislation, called the passage of the bills an important step. Lawmakers backing the plan said it would replace a patchwork of Alabama laws with a uniform regulatory framework.