Senator Merika Coleman recently introduced Senate Bill 257 (SB 257), a proposal that would significantly expand legalized gambling across Alabama. If approved, the bill would allow for the establishment of a state lottery, commercial casinos, and sports betting, subject to approval by voters through a statewide referendum. This move comes at a time when Alabama faces a growing budget shortfall, with lawmakers seeking new sources of revenue to support essential public services. The bill also seeks to amend the Alabama Constitution, which currently restricts most forms of gambling, to create a more inclusive and regulated gaming market.

Alabama remains one of the most restrictive states when it comes to gambling, with neighboring states already offering casinos and sports betting. SB 257 represents the latest attempt by state lawmakers to bring Alabama in line with other states in the region. Supporters argue that this expansion could help Alabama capture revenue currently being spent in nearby states and generate much-needed tax dollars.

Key Provisions of SB 257

SB 257 (pdf) focuses on creating a legal framework that would allow for a state-operated lottery, commercial casino gaming, and retail and mobile sports betting. Under the bill, lawmakers would have the authority to authorize various gaming activities once the amendment is passed, though the specifics, such as tax rates, licensing requirements, and revenue splits, would be determined through future legislation.

A significant part of the proposal is the creation of a state gaming commission, which would oversee the regulation of all approved gaming activities in the state. The commission would also have the authority to enforce laws related to gambling and work to eliminate illegal gambling operations that have long thrived in the state’s unregulated gray market.

As reported by AL.com, the bill also proposes allowing the governor to negotiate a gaming compact with the Poarch Band of Creek Indians, which would permit Class III casino-style gaming and sports betting on tribal lands. This provision is an effort to secure the approval of local tribal groups while expanding the range of legal gambling in Alabama.

A notable aspect of SB 257 is its provision to block future local constitutional amendments related to gambling. The bill aims to prevent counties or regions from creating their own gambling rules, which has been a source of confusion and enforcement challenges in Alabama. This move is designed to create a more consistent and regulated gambling environment, with a uniform set of rules applying across the entire state.

Historically, Alabama has dealt with a patchwork system of gambling regulations, where local governments were allowed to introduce their own gambling laws. This has created enforcement issues and led to legal gray areas, particularly with illegal gambling operations. By eliminating local-only amendments, SB 257 seeks to streamline the regulatory process and provide clearer guidelines for all gaming activities within the state.

Gambling Expansion Faces Opposition and Challenges

Alabama’s efforts to expand gambling have faced significant opposition in the past. In 2024, a bill that would have legalized a state lottery, commercial casinos, and sports betting narrowly failed in the state Senate. The debate over gambling expansion has sparked strong debates between lawmakers and opposition groups, particularly those concerned about the social impact of gambling. Opponents argue that gambling can lead to addiction, negatively affect families, and contribute to social problems.

Despite this, there has been significant support from many lawmakers, including Governor Kay Ivey, for the expansion of gambling as a potential solution to the state’s financial challenges. The ongoing discussions around SB 257 show that while Alabama has remained resistant to large-scale gambling operations, there is growing momentum for change.

If the bill passes through the Legislature, it would be put to a vote by the public in a statewide referendum. Voters will ultimately decide whether they want to approve the expansion of gambling, marking a critical moment for the future of the state’s gambling landscape.

Proponents of gambling legalization argue that it will help Alabama capture revenue that is currently being spent in neighboring states, creating jobs and generating new tax revenues. Legalized gambling could also replace illegal gambling operations, providing a more regulated and secure environment for consumers.