Alabama has long maintained strict limits on gambling, even as neighbouring states adopted lotteries, casinos, and sports betting. Senate Bill 257 (SB257) proposes a constitutional change by repealing and replacing Section 65 of the 2022 Alabama Constitution, which has restricted most forms of gambling. If passed, it would allow a state lottery, casino gaming, and sports wagering both in person and online. The bill comes at a time when Alabama has seen revenue leave the state as residents gamble elsewhere, representing a step towards addressing an issue that has persisted for decades.
Key provisions of SB257
SB257 would remove Section 65 of the Alabama Constitution, which has traditionally prohibited most types of gambling, and replace it with a framework that would give the legislature the authority to regulate gaming through general law. The bill also authorises the creation of a state-run lottery, with future legislation determining how the revenue would be allocated to public services such as education or infrastructure.
SB257 would legalise casino gaming but restrict it to in-person venues, excluding online casino gambling. Sports betting, however, would be permitted both online and in person, reflecting current betting practices and allowing for broader access.
Creation of statewide gaming body
SB257 calls for the creation of a statewide gaming commission under the executive branch, with the legislature defining its composition, authority, and duties through general legislation. The commission would include a law enforcement division tasked with overseeing gaming operations and addressing illegal gambling across Alabama.
SB257 would prevent future constitutional amendments on gambling that apply only to specific local areas, ensuring that changes cover the entire state. However, existing local bingo amendments would remain in place and not be repealed, preserving current arrangements.
Expanded tribal gaming
SB257 allows the governor to negotiate a new gaming compact with the Poarch Band of Creek Indians, who currently operate under a Class II licence limited to bingo-style games. The bill would enable a shift to Class III gaming, including casino games and sports betting on tribal lands. Any agreement would require approval from the US Secretary of the Interior, and both the state and the tribe would need to accept federal jurisdiction for related legal matters.
SB257 would still need to pass a statewide referendum before it could become law, even if lawmakers approved it. A simple majority vote would determine whether Alabama permits more gambling or retains its current restrictions.
Past failures and political resistance
Political disputes, public scepticism, and constitutional obstacles have prevented Alabama from legalising gambling on multiple occasions. Legislators attempted to address lotteries, casinos, and sports betting in 2024, but their efforts were unsuccessful. After these repeated setbacks, 2025 saw little progress, and SB257 now marks a renewed attempt to address the issue more comprehensively.
What happens next
SB257 must pass both chambers of the Alabama Legislature before it can go to voters, with lawmakers also needing to agree on how gambling revenue would be allocated, a point that has caused disagreements in the past. If approved, the amendment would appear on a future ballot, where voters would decide on authorising a state lottery, casino gaming, sports wagering, a statewide regulatory commission, limits on local amendments, and tribal gaming agreements.
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