
As December 2024 concludes, Alabama remains one of the few states holding firm against the wave of sports betting and gambling legalization sweeping the country. While neighboring states benefit from substantial revenue and public interest, Alabama continues to grapple with legislative and enforcement challenges that keep its gambling framework among the nation’s most restrictive.
Earlier this year, Alabama’s House of Representatives passed House Bill 151, a broad measure aimed at introducing sports betting, casino gambling, and a state lottery via a constitutional amendment. Despite initial momentum, the proposal stalled in the Senate. The Tourism Committee significantly diluted the bill, leaving only a lottery component that ultimately failed to gain enough support. This marked yet another missed opportunity for the state to modernize its gambling policies.
Alabama’s Limited Gambling Landscape
Currently, Alabama permits only a narrow range of gambling options. Tribal casinos offer electronic bingo, and licensed pari-mutuel tracks host historical horse racing games. Absent are traditional table games, sportsbooks, and even a state lottery. This stands in stark contrast to neighboring states like Tennessee, which boasts thriving online sports betting, and Mississippi, where in-person wagering flourishes.
While these states continue to generate substantial revenue and cater to public demand, Alabama remains stuck on the sidelines. Its refusal to embrace legal gambling leaves it isolated in a region rapidly embracing change.
Despite the legal void, Alabama residents are actively seeking ways to participate in sports betting. GeoComply data from the 2024 NCAA basketball tournament highlights this demand, showing nearly 190,000 geolocation checks from Alabama as residents attempted to access legal betting platforms in neighboring states, with 42% targeting Tennessee sportsbooks.
Moreover, over two million attempts to connect with illegal online sportsbooks were blocked during the same period. These figures underscore the persistent enforcement challenges and the significant potential for legal wagering to meet this untapped demand. Notably, Alabama consistently ranks second nationwide in Google searches for illegal sports betting, further illustrating the public’s interest in gambling.
In an effort to address the state’s ongoing struggles with illegal gambling, Rep. Matthew Hammett (R-Dozier) has pre-filed a bill for the 2025 legislative session. The proposal aims to increase penalties for operators of illegal gambling businesses, escalating the offense from a misdemeanor to a felony.
Currently, illegal gambling carries a Class A misdemeanor penalty, with fines up to $6,000 and a maximum jail term of one year. Hammett’s legislation seeks to reclassify these offenses as Class C felonies, punishable by up to 10 years in prison and fines of up to $15,000. Repeat offenders could face Class B felony charges, with penalties reaching 20 years in prison and fines as high as $30,000.
Hammett emphasized that the bill does not target legally operating entities, such as pari-mutuel tracks. Instead, it seeks to shut down illegal operations, which have persisted despite existing laws.
Addressing Repeat Offenders
Covington County District Attorney Walt Merrell has collaborated with Hammett on the bill. He points out that the current legal framework lacks the necessary deterrents to prevent repeat offenses. Merrell has encountered multiple cases where illegal gambling businesses reopen shortly after being shut down.
The challenge often lies in prosecuting those directly responsible. “We don’t want to prosecute a store clerk who’s making $10 an hour when the real culprit is the business owner,” Merrell said. Under current laws, enforcement efforts often fail to hold accountable the individuals profiting most from illegal gambling.
Broader Reforms Remain Contentious
While Hammett’s bill focuses on cracking down on illegal gambling, other lawmakers advocate for broader reforms. Rep. Sam Jones (D-Mobile) has championed comprehensive legislation to regulate both legal and illegal gambling statewide. His proposal, which narrowly failed during the last legislative session, would establish a regulatory authority to oversee gambling operations.
Jones argues that piecemeal legislation often leads to lengthy court challenges, delaying meaningful reform. He notes growing consensus among lawmakers that Alabama must address its gambling issues comprehensively.
As 2025 approaches, the debate over gambling in Alabama continues. With public demand evident and legislative efforts gaining momentum, the state faces a critical crossroads in determining its gambling future.
Source:
''Alabama resists sports betting as neighboring states cash in on revenue'', alreporter.com, December 26, 2024.