Alabama Approves Lottery Proposal, Excludes Sports Wagering

The Alabama legislative body approved a lottery proposal, but not a sports wagering proposal.

A joint committee in Alabama submitted a revised gambling proposal to the House on Tuesday (April 30) night, which the House approved. The proposal will advance to the Senate, and if passed by the Senate, voters will have the opportunity to decide whether the state should establish a lottery and electronic gaming.

The Alabama legislature passed a lottery proposal, electronic gaming, excluding gambling.
Sports wagering is not included in the proposal. The House passed the constitutional amendment HB 151 by a vote of 72-29, and the framework proposal HB 152 by a vote of 70-29.

The lottery is anticipated to begin operations sometime in 2026.

Alabama is one of five states in the United States that does not have a lottery. State voters rejected a proposition to add a lottery in 1999. Three of Alabama’s four neighboring states offer some form of legal sports wagering. Only Georgia does not have legal gambling. Tennessee and Florida offer statewide mobile sports wagering.

Mississippi offers on-site gambling. A proposal to expand Mississippi sports wagering to statewide mobile betting was rejected by a joint committee on Monday (April 29).

The Alabama legislature passed a lottery proposal, simplifying the proposal’s content.
Representative Chris Blackshear stated the committee brought “the best proposal we could find to let the people vote.”

The suggestion to broaden gambling, first presented in February, was considerably reduced at the gathering.

The legislation sought to permit the state government to provide its own lottery and join multi-state lotteries. In theory, if voters endorsed it, they would be able to purchase Powerball or Mega Millions tickets.

Blackshear stated the legislation would set a special election on August 20th to approve the lottery. The legislation would allow for physical lottery tickets, digital gambling games at seven locations, paper bingo, and conventional raffles. The lottery would be supervised by the Alabama Education Lottery, with earnings going to various educational programs. Income from slot machines and other forms of gambling would go to the general fund.

Digital gambling games would be permitted at designated racetracks in Greene, Jefferson, Macon, and Mobile counties, and at bingo halls in Greene, Houston, and Lowndes counties. The legislation mandates the governor to negotiate with the Poarch Band of Creek Indians concerning trust lands and three classes of gambling. The tribe already operates three Class II retail casinos on tribal lands.

Legislators discussed the legislation for over an hour, with most members supporting and commending the conference committee. Another key theme was that having a state lottery would keep Alabama’s money within the state. Some lawmakers pointed out that residents drive to Florida or Tennessee to buy lottery tickets.

The legislation is anticipated to be transmitted to the Senate from the House, likely towards the end of this week. The Alabama legislative body is scheduled to conclude its session on May 14th.

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