Alabama SB 257 Would Let Voters Decide on Lottery, Casinos, and Online Sports Betting

Alabama State Sen. Merika Coleman-Evans has introduced SB 257, a constitutional amendment proposal that would put a state lottery, commercial casinos, and online sports betting directly before voters while creating a new statewide gaming regulator and opening the door to a tribal compact.

Although many lawmakers — along with Gov. Kay Ivey and House Speaker Nathaniel Ledbetter — have expressed support for expansion, Alabama remains one of the most restricted states for legalized gambling.

As gambling expansion requires amendments to the state Constitution, any proposal passed by the Legislature must be approved by voters. The last time that happened was in 1999, when voters rejected a lottery.

What SB 257 Would Authorize

SB 257 proposes repealing and replacing Section 65 of the Alabama Constitution, which currently restricts lotteries and most forms of gambling.

Key provisions include:

• State lottery authorization
• Commercial casinos
• Retail and mobile sports betting
• Authority for the Legislature to approve additional gaming activities with a three-fifths vote in each chamber
• The governor is to negotiate a gaming compact with the Poarch Band of Creek Indians for Class III gaming (casino-style gaming) and sports betting

Importantly, the bill does not set tax rates, license caps, revenue splits, or locations. Those details would be determined later through implementing legislation. Instead, SB 257 establishes the legal framework first, leaving operational details to future laws.

New State Gaming Commission and Enforcement Arm

The bill would also create a state gaming commission to oversee licensing, regulation, and compliance.

Lawmakers would later define its structure and powers, but the proposal mandates explicitly:

• Regulatory oversight of all authorized gaming
• A dedicated law enforcement division
• Enforcement authority aimed at eradicating illegal gambling operations

That enforcement focus reflects years of complaints from lawmakers that Alabama’s gray gambling market activity — including retail machines at locations like gas stations and offshore betting — has flourished without statewide regulation.

Freeze on Future Local Gaming Amendments

One notable structural change: SB 257 would block future piecemeal constitutional amendments tied to specific counties or regions.

Under the proposal, any future gaming amendment that applies to less than the entire state would be void. That provision is designed to prevent Alabama’s long-standing patchwork system of local exceptions, which has historically complicated enforcement and negotiations.

Existing bingo-related amendments would remain intact.

Ballot Question Process

If the Legislature passes SB 257, voters would see a statewide referendum asking whether to:

• Authorize lottery and gambling
• Create a state gaming commission
• Prohibit future local-only gaming amendments
• Allow a tribal compact

A simple majority vote would determine ratification.

Another Try After 2024 Efforts Die on the Finish Line

SB 257 marks the latest attempt to expand gambling in Alabama after lawmakers came closer than any point in decades to sending the issue to voters in 2024.

Then, a bill that would have legalized a state lottery, commercial slots, and tribal Class III casinos failed by one vote in the Senate. The House approved the measure. The final package was the result of a conference committee, formed after the House and Senate couldn’t agree on the scope of gambling expansion to present to voters.

The House version was a comprehensive proposal that would have legalized a lottery, commercial casinos, sports betting, tribal Class III casinos (including additional tribal casinos), and a regulatory body.

The Senate, however, rejected that and passed a measure that would’ve legalized a lottery, commercial slots (no table games), and tribal Class III gaming. Instead of sports betting, the Senate proposed historical horse racing machines and off-track betting.

In 2025, momentum stalled further. Another proposal was discussed but never formally advanced as leadership prioritized other legislative priorities, effectively shelving gambling for the year.

The result: two consecutive sessions with intense debate but no ballot question.

That history helps explain why SB 257 adopts a simpler strategy — establish constitutional authority first and let voters decide, rather than trying to finalize every regulatory detail inside the Legislature.

The Bigger Picture

Alabama remains one of the few U.S. states without a lottery or a broad commercial gaming market. Meanwhile, neighboring states have expanded into casinos and online sports betting.

Supporters argue that legalization would:

• Capture revenue currently flowing out of state
• Replace unregulated gambling with licensed operators
• Create jobs and generate tax dollars

Opponents have historically raised concerns about social costs, religious objections, and the scope of casino development.

If SB 257 advances, voters — not lawmakers — would finally decide whether Alabama joins the rest of the Southeast in expanding regulated gambling.