Alabama

The Alabama Crimson Tide has been one of the best college football programs of the last decade, but unfortunately, in-state fans have been unable to bet on their team due to the state’s sports betting legislation.

If you want to bet in Alabama, you are limited to horse racing. For such a big sports state, this is quite unfortunate for residents of the “Heart of Dixie,” but not all hope should be lost. As sports betting grows in the U.S., it is more likely to eventually become legal. For the time being, AL residents do have the option to download and use Daily Fantasy Sports apps, so there is still a way they can use their fandom to make some money on the prominent DFS products.

Online sports betting in The Yellowhammer State

As time passes, more and more states are starting to join the rapidly growing list of states with legalized gambling. For quite some time, Alabama has been trying to join that list, but they’ve remained unsuccessful. In both 2021 and 2022, the state had gambling bills that gained momentum and made it to the AL Senate floor, but that was as far as they would go, with both failing to be passed.

Additionally, in 2022, Jefferson County, which is the largest city in Alabama, tried to legalize sports betting strictly in that county through HB 405, but that bill would not even reach the Senate floor. This is not something that is very common when it comes to passing gambling bills, so the want for sports betting is very clearly present in AL.

That doesn’t mean supporters of sports betting in the state are stopping, though, as according to the Alabama Political Reporter, the 2024 legislation session opened in March, and one of the topics discussed is gambling.

House Speaker Nathaniel Ledbetter has put together a gambling committee, and his committee created HB 151 and 152, which would legalize sports betting and the lottery. While both bills were approved by the state House of Representatives, the Senate removed all of the language regarding sports betting, so the bills are now solely about legalizing a state lottery and a few licensed slot parlors.

The state has a few tribal-based casinos, but they do not offer sports betting, nor do they have the option to partner with brand-name sportsbooks for the time being. With that, Daily Fantasy Sports and horse racing remain the only regulated “gambling” options in AL. Like many states without legalized gambling, there are a few illegal gambling operations that the aforementioned committee will also allegedly be addressing.

Sports betting & gambling legislation in AL

Alabama has three tribal casinos and does not have a lottery, but that could change soon, with the lottery being the sole purpose of HB 151 and HB 152, which still face some challenges in order to be passed. The state first tried to establish a lottery in 2021 with a bill that would have also turned the state's racetracks into casinos that offer sports betting, but like most bills, it failed to reach the House floor.

When SB 293 was introduced in 2022, the goal was to limit sports betting to retail casinos and mobile platforms that tie directly to those casinos. For the time being, it is unclear whether the next gambling-related bill will include these same stipulations, as the two current gambling bills had all literature about sports betting removed.

The fact that the state constitution directly prohibits gambling is another hurdle lawmakers have to jump through when creating these bills, which again adds to the complexity of the issue.

Most recent updates from the AL sports betting scene

• May 8, 2024: After falling in the Final Four round of the 2024 NCAA Tournament, the Alabama Crimson Tide men's basketball team currently has the 4th best odds to win the 2025 National Championship at (+1500).

• May 6, 2024: The Alabama Crimson Tide football team has concluded spring practice. They are currently (+124) to make the College Football Playoff and (+1300) to win the National Championship.

• May 1, 2024: HB 151 and HB 152 were passed by the House, but the Senate removed the legal sports betting section from both. This makes them both about legalizing the lottery and a few slot parlors. Both will be voted on in the near future.

• December 5, 2023: Dave Portnoy attracts media attention by wagering $1 million on the outcome of the College Football Playoffs, specifically the Alabama vs. Michigan game. He's supporting Michigan and placed the bet with FanDuel at odds of -118. If Michigan wins, he will win $847,457.63 in addition to his original stake.

• November 16, 2023: The Ohio Casino Control Commission has proposed a lifetime sports betting ban for Brad Bohannon and his associate Bert Neff Jr. The two have 30 days to challenge this punishment, or they will be added to the state's involuntary exclusion list.

• November 15, 2023: When Alabama state legislation begins in March, the topic of gambling will be discussed once again.

In-person gambling sites and locations

At this point, there are just three tribal casinos in the state of Alabama, and there isn’t a high likelihood that more would be introduced unless a legalized gambling bill is introduced. These casinos are owned and operated by the Creek Indians, and for the Governor to negotiate with the tribe about advancing these properties, he would need a gambling bill to pass.

Alabama also has four dog tracks scattered around the state. If a bill similar to the one being discussed in 2022 is passed, these facilities would likely offer full casino gaming as well.

Sports betting in neighboring states

Betting in states surrounding Alabama is, quite frankly, booming. Georgia, Florida, Mississippi, and Tennessee all have legal retail sports betting, and offer the ability to bet on horse racing and participate in Daily Fantasy Sports Games.

Tennessee also has legalized mobile sports betting, so with the surrounding states ramping up their efforts to give their residents the ability to wager legally while also turning a profit, the pressure is growing for Alabama to do the same and eliminate all illegal operations in the state.

What’s next for AL betting apps?

Heading into 2024, there was certainly a different feeling and optimism surrounding sports betting. Unfortunately, the state has continued to run into the same issues during this most recent legislative session. Both HB 151 and HB 152 were introduced during the session and the combination of them would create a constitutional amendment change and establish a gaming commission and both retail and mobile betting.

While these bills made it through the House, they are only continuing through with the Senate with sports betting and iGaming removed from the bills.

These bills being passed would still mean a lottery would be created, and gaming compacts could be renegotiated. However, it also means Alabama residents will have to wait until 2025 for sports betting to be discussed again.

Potential sports betting revenue impact on Alabama's economy

We have no revenue data for Alabama since gambling isn’t legalized. In 2020, Gov. Kay Ivey ran a study on gambling, and the results showed Alabama could potentially make $800 million a year through casinos, the lottery, and sports betting.

Compared to its surrounding states, Tennessee saw over $12 billion in handle and over $1.18 billion in revenue in November 2023 alone. In terms of their population, the closest comparable state with legalized gambling to Alabama is Louisiana. While Louisiana does not have numbers as strong as Tennesee, they still do well on a monthly basis, as they’ve made over $676 million in revenue and over $5 billion in handle since legalizing sports betting.

Alabama could have very different results from both of the states mentioned above, but with multiple sportsbook apps and casinos expected to be added to the state if they even legalize sports betting, the state should at least have comparable numbers to Louisiana over time.