Alabama ranks as one of the most restricted states regarding gambling. The Cotton State lacks commercial casinos, racinos, iGaming, sports wagering, and a state-operated lottery. New laws would enforce stricter penalties for individuals who fail to comply with the stringent gambling regulations. 

State Representative Matthew Hammett (R-Covington) presented House Bill 41 last week. The law aims to enhance punishments linked to different gambling-related offenses. 

The proposal would clarify that electronic bingo games, skill games, historical horse racing (HHR) machines, and video lottery terminals are prohibited by the Alabama Code. 

Consequences for an individual intentionally gaining from unlawful gambling would be elevated from a Class A misdemeanor to a Class C felony, which is punishable by one to ten years imprisonment and a maximum fine of $15,000. The existing penalty framework for misdemeanors penalizes individuals convicted of gambling offenses with a maximum of one year in prison and a $6,000 fine. 

Under Hammett’s legislation, individuals convicted of repeated gambling offenses would incur Class B felony penalties, which could result in imprisonment from two to 20 years and a potential fine of up to $30,000 or twice the monetary profits gained from their unlawful gambling activities. 

Gambling Referendum Missed by a Narrow Margin 

Earlier this year, Alabama legislators narrowly voted against a proposal that would have let voters choose whether to lift the state’s ban on commercial gambling. 

In early May, a unique conference committee advised the Alabama Legislature to propose to voters the approval of three tribal casinos featuring slot machines and table games, along with seven racinos that would permit only slot machines.
 The committee also suggested that a state-operated lottery be established. 

For Alabamans to express their opinion, the gaming referendum bill required a three-fifths majority backing in both legislative chambers. The House of Delegates reached the required threshold, but the initiative missed by one vote in the Senate.

"Whatever side you were on with the gambling bills last session, whether you were yes or no, everybody agreed there’s a problem in this state with illegal gambling,” Hammett told AL.com.

State Sen. Greg Albritton (R-Atmore) was noted for the failure, as he was one of the 15 "no" votes in the Senate. Albritton, a longstanding advocate for legalizing casinos, stated that he opposed the referendum since it did not permit the Poach Band of Creek Indians to explore a commercial casino project on non-sovereign land. The federally acknowledged tribe operates a Class II tribal casino in Atmore, Albritton’s. 

Hammett was one of the “no” votes against the gaming referendum in the House. 

Prosecutors Seek Stricter Punishments 

Hammett developed HB 41 at the urging of Covington County District Attorney Walt Merrell, who asserts that the existing penalty framework in the state does little to deter illegal gambling. Merrell stated that the penalties for misdemeanors are only slightly more than a “slap on the wrist” and fail to deter individuals thinking about participating in illegal gambling. 

In recent years, Casino.org has documented many instances of law enforcement conducting raids on illegal gambling activities. 

Earlier this month, Alabama Attorney General Steve Marshall reported that illegal electronic bingo machines, which were subject to a temporary restraining order while law enforcement tried to secure a seizure warrant, disappeared from a Selma business. Marshall's office reported that authorities subsequently discovered the illegal gaming machines in Lipscomb, situated over 80 miles to the north. 

The state later accused several individuals of felony burglary offenses. The proprietors of the Selma operation faced only misdemeanor charges, as permitted by state law.