Alabama Lawmakers Delay Sports Betting Conference Committee

Alabama Crimson Tide player Mark Sears (1) passes out as Auburn Tigers take on Alabama Crimson Tide at Neville Arena in Auburn, Ala., on Saturday, Feb. 11, 2023. Alabama Crimson Tide defeated Auburn Tigers 77-69.An Alabama conference committee to negotiate a gaming package has been delayedOne Senator believes a compromise is closeThe conferees will determine the fate of Alabama sports betting, casino, and lottery

An Alabama conference committee scheduled for today has been delayed, but state lawmakers may be nearing a compromise on a proposed gambling package.

The conference committee has yet to be rescheduled, but according to the Alabama Reflector a compromise between the House and Senate may be close after several informal meetings earlier this week.

The House approved two expansive gaming bills in February that called for the legalization of up to seven casinos, in-person and online sports betting, and a state lottery to support Alabama education. A Senate committee, however, stripped sports betting language out of the bills leaving only the approval of three tribal casinos, a state lottery, and parimutuel wagering on horse and dog races at seven state tracks.

Several Productive Meetings

It was reported that the conferees had several unofficial meetings earlier this week to discuss the proposed gaming package.

The House is being represented by Rep. Chris Blackshear (R-80); Rep. Sam Jones (D-99); and Rep. Andy Whitt (R-16). The Senate is represented by Sen. Greg Albritton (R-22); Sen. Garlan Gudger (R-4); and Senate Minority Leader Bobby Singleton (D-24).

According to the Alabama Reflector, Blackshear believes the two chambers are close to a compromise on gaming. No public meeting has yet to be scheduled after today’s was delayed.

“We will continue to have these discussions and hold a public meeting when both sides are comfortable doing so,” the Alabama Reflector reported Blackshear saying through a text.

The Alabama session will officially end on May 20, but lawmakers must pass a potential bill at least 10 days prior to the final day. This gives Alabama lawmakers until May 9 to pass a bill. The conference committee will have to find common ground and present the newly amended bill to both the House and Senate.

The bill would need three-fifths approval in both chambers to be approved. State voters would have the final say on the gaming package in the November general election.

Conference committees exist when either the Senate or House amends an approved bill and the originating body does not concur with its changes. The chambers can agree to a conference committee, where House and Senate representatives come together to potentially reconcile differences in the approved legislation.

Conference committee reports are then presented to both chambers and they must be voted on again.

Sports Betting Hopes High During Start of Session

The House approved expansive gaming legislation in February to legalize a state lottery, casinos, and sports betting. The House approved bills HB 151 and HB 152, which called for the legalization of up to seven casinos, in-person and online sports betting, and a state lottery to support Alabama education.

Despite the approval, a Senate committee quickly dashed hopes for sports betting in the state. The Senate Tourism Committee entirely stripped sports betting from the gaming packages just three weeks later, leaving only the approval of three tribal casinos, a state lottery, and parimutuel wagering on horse and dog races at seven state tracks.

The Alabama Senate approved the legislation by a 22-11 vote in March, but this month the House did not concur with the expansive amendments and requested a conference committee for the legislation.

Sports Betting Bill Details

Prior to the Senate stripping all sports betting language out of the legislation, the House-approved bills called for the establishment of an Alabama Gaming Commission to license and regulate the conduct of all sports wagering, charitable gaming activities, lotteries, and casino gaming activities in the state. The bills also created the Alabama Gaming Enforcement Division, which would have included the power to police all gaming activities in the state and “work to eradicate unlawful gaming and gaming-related activities.”

The bills taxed casinos at a rate of 24% of net gaming revenue and 95% of total gaming revenue was earmarked to the state’s Gaming Trust Fund every month. A percentage of the revenues would have been distributed among municipalities where the casinos are located.

Casino licenses would have been valid for a 15-year term. An extended initial license term could be granted by the gaming commission if the applicant proposes to make a minimum capital investment of $500 million at the proposed site. Casino license fees shall would not be less than $5 million.

Sports betting would be taxed at 17% of net gaming revenue, with 90% of the revenue allocated to the Gaming Trust Fund and 10% to be allocated among each county commission to be used “exclusively for law enforcement purposes of the respective sheriff’s department.”

A state education lottery would have also been created.