Alabama To Try Again To Legalize Casinos, Lottery, Sports Betting

In the latest attempt to crack open one of the most restrictive gambling states in the country, Alabama state Sen. Merika Coleman filed a bill this week that would let voters decide whether the state should legalize a lottery, casino gaming, and sports betting.

Senate Bill 257, introduced Tuesday, proposes a constitutional amendment to repeal Alabama’s ban on lotteries and authorize the legislature to establish a state lottery, allow in-person casino games at licensed locations, and permit sports wagering both in person and online. It would also create a regulatory commission and let the governor negotiate a gaming compact with the Poarch Band of Creek Indians.

Coleman, a Democrat serving her first Senate term after 20 years in the House, is pitching this as a simple yes-or-no question for voters, rather than another negotiation among lawmakers.

“This is about letting the very smart and intelligent people of Alabama say yes or no, we want this in our state,” Coleman said on Alabama Public Television’s Capitol Journal, as reported by Alabama Daily News.

Her basic argument: Stop haggling over details and let voters approve the concept first. If they say yes, the legislature can hammer out regulations later.

Same story, different year

Alabama has tried this before. The state constitution bans lotteries and most gambling and changing it requires a three-fifths legislative majority before anything reaches the ballot.

In 2024, a package legalizing lottery, electronic gaming at seven locations, sports wagering, and a Poarch Creek compact passed the House, then died one vote short in the Senate. Fights over revenue allocation and what types of gambling to include helped sink it. 

Coleman’s pitch centers on money — specifically, the money Alabama doesn’t have and the money leaving the state every day.

“We have some major deficits, and it’s going to be worse next year,” Coleman told Capitol Journal, according to CBS 42. “So we need to be proactive as a legislature and come up with revenue that is not a tax on the people of Alabama.”

Alabama is one of just five states without a lottery. Residents drive to neighboring states to gamble and Coleman wants that revenue to stay home.

“People in our state are already doing this,” she said. “And the revenue it generates for Medicaid and public education is money we need here in Alabama.”

What’s in the bill

SB 257 keeps things broad. In addition to authorizing a state lottery, in-person casino-style games at licensed establishments, and sports betting both in person and online, it allows the legislature to approve additional forms of gaming with a three-fifths vote of both chambers.

The bill creates a commission to regulate and license gaming operations, along with a law-enforcement arm to crack down on illegal gambling. It also blocks any future local constitutional amendments on gaming, while preserving existing local bingo rules.

On the tribal front, it authorizes compact negotiations with the Poarch Band of Creek Indians for Class III gaming and sports wagering on tribal lands.

The session runs through March 27. For now, SB 257 sits in the Senate Tourism Committee.