Alabama's State Senator Merika Coleman has launched an attempt at regulating various gambling industries in what is currently considered one of the most conservative states on gambling in the US. However, online casinos remain out of the question.
The new Bill, Senate Bill 257 would create a new state gambling regulator and would require Governor Kay Ivey to negotiate a gaming compact with the State's Tribes.
If successful, voters would be given the final say on the introduction of a state lottery, land-based casinos, as well as retail and mobile sports betting.
The most recent attempt at regulatory expansion came in 2024, when a similar bill lost out by a single vote.
Senate Bill 257 proposals
Along with Alaska, Hawaii, Nevada and Utah, Alabama is one of only a few states without its own potentially money-spinning lottery.
Lottery
Players spend approximately $100bn on lotteries in the US, with around $30bn of the money being paid to local schools and other statewide funds. Alabama voters opted against a state lottery in 1999, the last time such a referendum was held.
Land-based casinos
The Bill also seeks to regulate land-based casinos. There are three venues currently classed as Class II Tribal casinos, all that are allowed under the current compact, which means they can only operate unbanked games like bingo and keno.
Under the proposals, not only would commercial casinos be allowed, but the Governor would negotiate a new compact with the state's only recognized Tribe, the Poarch Band of Creek Indians.
Governor Ivey has previously stated: "Voters have to approve to expand gambling before we can do a compact."
Sportsbooks and online betting
The Bill does not make any provisions for online casinos, but it would potentially allow online and retail sports betting.
Introducing a gaming commission
SB 257 also avoids setting any tax rates, license fees, or other license caps. Instead, these details would be set in future legislation, fronted by a newly formed state gaming commission.
The commission would enjoy full regulatory oversight of the industry and a law enforcement division would be established to help police the burgeoning gray gambling market in the state.
Past efforts
Alabama has struggled with the question of gambling expansion in the past. In 2024, the House and Senate disagreed on the scope of changes.
The House wanted to introduce lottery and Tribal Class III gaming, as well as commercial casinos and sports betting.
While the Senate agreed with the lottery and Tribal casinos, it wanted to prohibit casino table games and put forward historical horse racing instead of sports betting.
With SB 257, lawmakers have changed their approach somewhat and, rather than arguing over which forms of gambling should be regulated, they want to establish a regulatory framework.
Alabama currently has some of the most conservative gambling laws in the country, but it has been more than 25 years since voters were asked for their opinion. If SB 257 goes ahead, that could change, with voters pressed to decide.
