New Sports Betting Bill Makes Headway in Alabama

New Sports Betting Bill Makes Headway in Alabama

The state of Alabama could get yet another go at sports betting with Rep. John Rogers’ House Bill 336, pending before the House Committee on Economic Development and Tourism.

Alabama’s issues with gambling

Alabama is one of the most conservative states in the US in terms of gambling. The state only has one tribal operated casino and has historically remained averse to any efforts towards gambling expansion. It has also been extremely critical of starting a state lottery because of which its experience in handling gambling-related businesses is very limited.

New Sports Betting Bill Makes Headway in Alabama

However, a new bill from Rep. John Rogers could change that story. It could make sports betting legal in both retail setups and online, finally opening the state up to the industry. The bill will allow bettors to visit approved physical/retail locations to place bets or choose mobile betting options as long as they are within the state’s borders.

If the bill passes the legislature, the state would offer four licenses to casino operators. It would also create a new entity- the Alabama Sports Wagering Commission, which will provide licensing to the new operators. It will also provide supplier licenses to businesses that supply equipment or services to a sports betting operation. There will be a management license to provide management services to betting operations and an occupational license that allows sports wagering on racetracks and gaming facilities within designated zones.

What will the state charge?

Operators seeking a license will have to make a $100,000 upfront payment for a five-year license, post which they will have to apply for a renewal. Suppler licenses will come at an upfront cost of $1,000 but will have to be renewed every year. Occupational licenses will cost only $100 upfront with yearly renewals. However, management licenses will cost $1,000. They will be renewed every year. The tax payments will be 10% of the adjusted gross wagering. All the proceeds will be deposited in a newly created account like Alabama Sports Wagering Fund.

The state will allow sports betting by all individuals located within the state borders who are at least 21 years of age. Betting will be allowed for professional sporting events as well as college teams. The Sports Wagering Commission will have the authority to approve games like motor racing etc. on which operators can allow legal betting services.

The bill is yet to move through the House, the Senate, and the Governor’s office to be turned into a law.

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