Alabama Ready for Another Attempt at Gambling Legalization in 2027

2027 could finally be the year that Alabama considers expanding its extremely limited gambling industry.

The southern state is one of five that does not have a state lottery and one of 11 that has not legalized sports betting. Its casino industry is limited to Indian facilities at four locations, and its online casino market is nonexistent.

Despite the state’s commitment to not embracing gambling, state lawmakers are turning up the pressure ahead of the next official legislative session at the turn of the year.

Could Alabama legalize casinos and sports betting?

Alabama’s federally-approved casinos operate under the Indian Gaming Regulatory Act of 1988, which allowed recognized casinos to offer self-governed retail facilities.

Rep. Chris Blackshear (R-80) has consistently shown the most favor toward gambling acceptance. He also said last week that a serious conversation about the expansion of the industry was due to occur next year.

Blackshear isn’t the only one who expressed these sentiments in years past — but while routine attempts have been made to legalize new forms of gambling, legislation has not been signed into law. 

Aside from the Indian gaming locations, casinos and online casinos are not allowed. That means no live-dealer table games, no slot machines, and none of the billions in estimated annual revenue being produced by the state’s neighbors and offshore operators. 

Blackshear led a 2024 effort that resulted in the House passing a package that would’ve allowed Vegas-style casinos at 10 facilities. The legislation also would’ve approved sports betting and created a state lottery, fully embracing the modern era of gambling. 

The Senate, however, has strong relationships with federally-recognized tribes that naturally did not want to lose their sole authority over the state market. The package was directed to a conference committee, which could not form a bridge between the two sides.

Arguments for legalization

The divide between the House and the Senate is down to a simple difference of opinion, one that is influenced by the connections of each chamber. 

The Senate’s ties to the tribes make it unlikely to be agreeable to gambling expansion. The House, with the gambling-driven Blackshear, sees revenue opportunities for a state that is capable of generating far more tax proceeds than it currently is. 

House Speaker Nathaniel Ledbetter (R-24) may have the best chance of convincing the Senate to pivot from its firm stance. He argued that Alabama has seen an enormous increase in black market gambling in recent years as America has fallen under the sweeping wave of gambling prevalence. 

The Sports Betting Alliance previously estimated that a fully regulated online and retail sports betting market could generate $65-90 million in annual tax revenue. Lottery and casino facilities could generate an additional $398-423 million, according to the Public Affairs Research Council of Alabama.

Another possible argument not made by state officials is the rise of prediction markets. The federally-licensed platforms do not need state approval to engage with consumers, who win or lose money in outcomes such as sports depending on the accuracy of their predictions. State gaming officials across the nation have argued these products closely resemble sports betting, but since prediction operators are not state-licensed, Alabama cannot shut them down and also cannot claim their tax revenue.