Alabama Sports Wagering Bill Filed: What You Need to Know About House Bill 490

Alabama is on the brink of a significant shift in its gaming landscape. Five state representatives have introduced House Bill 490 in a bid to authorize and regulate sports wagering activities throughout the state. This move signals a substantial advancement in Alabama’s approach to gaming.

Key Highlights of House Bill 490

This legislative measure, known as the Alabama Sports Wagering Control Act, sets out a comprehensive framework designed to control and oversee various aspects of sports betting:

• Establishment of the Alabama Gaming Commission: This body will oversee and regulate sports wagering activities within the state.
• Licensing and Regulation: Licenses would be issued for both online and in-person wagering activities.
• Taxation: A 10% tax will be imposed on the net sports wagering revenue of licensees.
• Revenue Distribution: Funds collected, including fines and fees, will be divided as follows:
  • 40% to the state general fund
  • 40% to the Education Trust Fund
  • 20% to the NIL Trust Fund
• NIL Oversight Committee: This committee will regulate name, image, and likeness (NIL) compensation for high school student-athletes.
• NIL Compensation: High school student-athletes will be eligible to receive NIL compensation under specific conditions. This compensation will be exempt from state income tax.

Permitted and Prohibited Betting Activities

Under HB 490, a wide range of sports wagering activities are authorized, such as:

• Single-game bets
• Teaser bets
• Parlays
• Over-under
• Moneyline
• Pools
• Exchange wagering
• In-game and in-play bets
• Proposition and straight bets

However, wagers on fantasy sports are excluded, and betting on K-12 schools or other amateur youth sports events is strictly prohibited. Participants must be 21 years of age or older to engage in sports wagering.

Legislative Journey and Support

The introduction of HB 490 marks the beginning of its legislative journey, spearheaded by five prominent state representatives:

• Rep. Jeremy Gray, D-Opelika
• Rep. Ontario Tillman, D-Bessemer
• Rep. Prince Chestnut, D-Selma
• Rep. Chris England, D-Tuscaloosa
• Rep. Travis Hendrix, D-Fairfield

While the House has demonstrated readiness to advance gaming legislation, the Alabama Senate remains pivotal. Senator Greg Albritton, R-Atmore, is keen on gauging enough support to push through a comprehensive bill, potentially requiring a constitutional amendment that demands at least 21 votes in the Senate.

The Road Ahead: Challenges and Considerations

Historically, the path to a comprehensive gaming package in Alabama has been fraught with challenges. The 2024 legislative session concluded without passing a package that included a lottery, sports betting, and casinos. Yet, the revenue projections were noteworthy, estimating annual gains between $935.6 million and $1.214 billion.

Speaker of the House Nathaniel Ledbetter, R-Rainsville, has stressed the importance of cooperation with the Senate in framing a robust proposal, envisioning a plan that aligns with the House’s previous 2024 propositions.

A potential factor shaping the debate around gaming legislation is the inclusion of a gaming compact with the Poarch Band of Creek Indians (PCI), ensuring that indigenous sovereignty and state interests align.

Shaping the Future of Gaming in Alabama

Despite setbacks in the past, Senate Minority Leader Bobby Singleton, D-Greensboro, remains optimistic about the future. Proposals for 2025 not only encompass sports betting but also entertain the ideas of implementing a lottery and Class II or Class III gaming systems.

Expectations are high as Alabama charts this new course amid ongoing discussions and growing support. As the state continues to explore the potential impact of such legislation, residents and stakeholders eagerly await further developments. The path to legalized sports wagering could mark a significant economic and cultural shift for the state, setting a benchmark for others in the region to follow.

Stay tuned for more updates as Alabama embarks on this pivotal journey in redefining its gaming industry.

Source: https://abc3340.com/news/local/sports-wagering-bill-filed-in-house-as-senator-counts-support-for-potential-gaming-package-alabama-legislature-montgomery-alabama-house-of-representatives-alabama-senate