Senate leadership confirmed that there is no chance of Alabama sports betting becoming legal this year. Sen. Greg Albritton had proposed a new bill and outlined tax spending, but it was deemed “too little, too late”.
Senate President Pro Tempore Garland Gudger said, “With 12 meeting days remaining in the session, both budgets still awaiting approval, and other important bills and measures demanding focus and attention, the comprehensive gaming bill released today is simply too little, too late, and has too few votes to pass.”
Revenue projections for Alabama gambling
Albritton had proposed a 24% tax rate on gambling revenue and the setting up of an Alabama Gaming Commission to oversee regulated betting. Studies estimate this could bring in approximately $745 million a year.
Determining how the windfall will be spent appears to be one of the main sticking points to moving forward. Previous plans to dedicate money to healthcare spending had been cut recently. Albritton had instead promised $150 million would go towards new roads, but that was not enough to secure enough yes votes.
Demand for legal sports betting
Alabama residents appear keen for access to online sports betting. Over 2 million attempt to access illegal sports betting sites were blocked last year.
Alabama also consistently ranks second nationally in Google searches for online sports betting. Many bettors turn to VPN friendly sites to get their gambling fix.
During March Madness, 190,000 geolocation checks originated in Alabama with 42% of those to online sportsbooks in neighboring Tennessee.
As Alabama continues to resist cashing in on sports betting, Tennessee has seen its popularity rise since legalization in 2020. Bettors wagered over $3.5 billion last year and the state collected $83 million in tax revenue, a 22% increase from 2023.
Any future for Alabama sports betting
There are proponents in the House as well as the Senate. House bill HB490 was introduced by Rep. Jeremy Gray last week. This bill proposes creating the Alabama Sports Wagering Control Act. The bill advocates a lighter tax rate of 10%, which may halt progress given the 24% proposed by Albritton failed to secure votes.
As well as legalizing online sports betting, HB490 propose to “regulate name, image, and likeness compensation paid to student-athletes”. The taxes gained from sports wagering would go towards “programs to protect and support high school student-athletes and coaches.”
If the Senate could not garner votes by promosing new roads or investment in healthcare then it seems unlikely HB490 will make much progress. It appears Alabamans will have to continue finding alternative means if they wish to bet.
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