After hopes of early discussions, Alabama sports betting talk appears to be heating up midway through the legislative session.
On Tuesday, lawmakers introduced House Bill 490, which would create an Alabama Gaming Commission and establish a framework for electronic games of chance, AL sports betting, and a lottery. Alabama is one of five states without a lottery.
The house legislation comes as Sen. Greg Albritton has discussed dropping a proposal with local media. Albritton had not returned LSR requests for an interview as of Wednesday morning.
The legislative session in Alabama runs until May 15.
Alabama Sports Betting Details
The Alabama Gaming Commission would oversee the sports betting industry, including issuing licenses for sportsbooks.
HB 490 would create a 10% tax on sports betting revenue, which would then send 40% to the state general fund, 40% to an Education Trust Fund and 20% to the NIL Trust Fund. It would also establish an NIL Oversight Committee to oversee high school athlete compensation.
Five Democratic representatives are listed as sponsors of the legislation. That comes after House leadership said gambling legislation needs to come from the Senate, after the upper chamber rejected a House proposal last year.
Senate Poses An Uphill Battle
Last year, the House advanced a comprehensive package similar to legislation previously passed in the Senate. The Senate failed to pass that proposal.
Albritton, the lead sports betting proponent in the Senate, has been working to secure the 21 votes needed to pass the Senate. He told the Alabama Daily News last week that he might file it this week, even to stir up more conversations.
Next year is an election year in Alabama, which could be one of the issues, Albritton told the publication.
“That’s a problem, but it’s not going to get any easier next year,” he said.
But It Could Be Close
Albritton helped kill the issue last year, voting against the bill because it did not do enough for the Poarch Band of Creek Indians. His proposal this year includes a stipulation that the state needs to enter compact negotiations with the tribe.
Still, Albritton said the state needs to take control of the industry. He believes Alabama legislators are close to figuring out a path forward.
“Frankly, I think we’re closer than we want to admit,” he told the Alabama Daily News. “That’s part of the reason for the stalemate. We’re close, but it’s so much easier (for some) not to make a decision. … Why stick your head out of the trench if you don’t have to?”
But Maybe Not So Fast
Senate Majority Leader Steve Livingston, however, is not so sure, according to 1819 News.
Livingston reportedly told the Business Council of Alabama this week that the issue is “the 800-pound gorilla in the room.” He is not sure where the extra vote or two to pass it would come from.
“Just to recap where we were last year: We came down, we left the eighth floor with 21 votes out of our caucus meeting,” he told the council. “We came downstairs, we got on the floor, [and] we ended up with 20 votes on the [Senate] floor. Since then, Sen. Reed has resigned to become Secretary Reed. He was a ‘yes,’ so all of a sudden that’s 19 if you take everybody we had last year.
“I don’t know where we get the votes at. I certainly don’t want to go in with 21 again. I want to have an extra one in my pocket this year, so I’m not looking for two, I’m looking for three. Sen. Albritton has been working the votes. I just don’t know where it comes from, to be honest with you.”
Albritton’s Alabama Sports Betting Proposal
Albritton’s legislation would send the issue to voters in a September special election. Gov. Kay Ivey has said repeatedly she wants voters to have a say on the issue.
Along with potential PCI facilities, it would include a lottery and Class II electric gambling at six racetracks in the state.
It would also legalize sports betting. The state would tax gambling at a rate of 24% under his plan.
