Gambling Laws in Alabama

Alabama is one of the strictest states in the US when it comes to gambling. It is also one of the few states that don't have a lottery, with most types of online and offline gambling deemed illegal.

Which Gambling Activities Are Legal in Alabama?

Gambling is generally illegal in Alabama, with very few exceptions.

The Legal Code of Alabama Title 13A-12-21 classes gambling as someone staking or risking 'something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome'.

However, there are continued efforts to form a so-called Alabama Education Lottery and Gaming Commission. This would be as part of a bill that would legalise all types of casino gambling and sports betting within the state.

Slots and Other Casino Games

Some very restricted forms of casino gambling have been permitted since 1988 and these are carried out within 3 tribal casinos. Each of these is operated by the Poarch Band of Creek Indians: Hotel Wetumpka, Hotel Atmore Wind Creek Casino and Hotel Montgomery.

The Poarch Creek tribal region is considered sovereign and has its own laws and law enforcement agents. Therefore the casinos on these lands are the only venues permitted to offer casino gambling in the state.

Currently, there isn't an online casino regulatory system or body in Alabama, making online casino gambling illegal. This applies to all online casino slots, RNG tables and live casino games.

Those contravening the law face misdemeanour charges of up to 3 months in prison or a maximum fine of $500. However, there isn't a record of those playing at out-of-state US online casinos or foreign sites being prosecuted for doing so.

Poker Tables

No distinction is made in Alabama between playing poker for money or for fun. Whilst the state laws don't apply to skill-based games, poker is classed as a game of chance. This means that no gambling venues in the state can offer the game in any form.

In the absence of online gambling regulations, online poker gambling is also considered illegal. Players potentially face prosecution for visiting foreign poker sites, though no such charges have been made to date.

Bingo Games

Bingo gambling was introduced to the state of Alabama in 1980. The activity comes in 2 main forms: electronic and traditional bingo. At one point, many locations throughout the state offered electronic bingo games. After several years of contention, these machines were finally banned from all venues except the tribal casinos in 2022.

Traditional bingo gambling is still alive and well in the state though, with 18 out of the 67 counties offering the activity.

Online bingo gambling is illegal in Alabama due to the lack of a regulatory framework. Even existing land-based bingo hall operators cannot offer their games online.

Alabama State Lottery Gambling

Surprisingly, Alabama is one of only a small handful of US states without a lottery, despite consistent yearly efforts to introduce one. Lottery gambling in all forms is currently illegal in Alabama. Those wishing to play online lottery games for real money can access illegal out-of-state online lottery sites at their own risk.

Are Social and Crypto Casinos Permitted?

The state of Alabama defines gambling as risking something of value on the outcome of games of chance or future events. Under this definition, social casinos and sweepstakes would be classed as gambling - even if you are playing with 'coins' instead of real money. However these casinos aren't specifically mentioned in Alabama's gambling laws.

Cryptocurrencies are classed as items of monetary value in Alabama, so gambling with these is a big no-no in the state. The legal tribal venues don't yet accept BTC or any other virtual coins either.

Can You Place Sports Bets Legally in Alabama?

Sports betting has been legal in Alabama since 1973, but only on parimutuel horse and greyhound racing. There are several race tracks across the state, but none of them offer live races onsite. Instead, these venues offer simulcast betting, which is betting on races broadcast from outside the state. 

There are no sportsbooks or betting shops in Alabama as the activity is illegal, despite continuing efforts to change this.

Online sports betting is equally restricted, with residents only permitted to bet on horse racing online. Fantasy sports betting sites such as DraftKings and FanDuel offered their unique markets in Alabama on the assumption that the activity was skill-based, but the sites were ordered to close in 2016. However, in 2019, fantasy sports betting was finally legalised, meaning that these sites were allowed to return.

What's the Legal Gambling Age in Alabama?

You must be at least 18 to take part in parimutuel betting and at least 21 to play games at a land-based casino due to the laws on alcohol being served on the premises.

How Are Gambling Profits Taxed in Alabama?

The current regulation requires all players to pay between 2% and 5% on gambling winnings, depending on their overall income. This is in addition to federal taxes on gambling winnings of 24%.

Alabama Gambling Law History

Alabama's state constitution deemed gambling illegal in 1901. It wasn't until the early 1970s that some limited forms were permitted, namely, parimutuel betting on greyhounds and horse racing. In 1980 bingo halls and events for charitable purposes were legalised, with Jefferson County being the first county to host such a venue. Birmingham Race Course was then approved and opened in 1984.

In 1988 the Indian Gaming Regulatory Act made it legal for tribal lands to host casinos, with Alabama's Poarch Creek tribe hosting three. In 2004 the Alabama Supreme Court ruled that since electronic bingo is a game of chance, it's deemed illegal in the state.

Victoryland Casino in Shorte Macon County closed in 2010 and then reopened in late 2012. It closed again in 2013 following disputes over the legality of casino gambling in the state, led by Governor Bob Riley.

Key Facts

• Casino gambling is illegal in Alabama, except at the 3 Poarch Creek tribe casinos.

• Online casino gambling is illegal, with no online gambling regulatory framework currently active in the state.

• Both online and offline poker is illegal in Alabama.

• Bingo machines are legal, but only in the 3 Poarch Creek tribe casinos. While bingo halls are legal and remain active in 18 of the state's counties.

• Online bingo gambling is illegal in Alabama.

• Both offline and online lottery gambling is illegal.

• Sports betting is illegal in Alabama except for parimutuel greyhound and horse racing betting (no live races at any race tracks, only simulcasts).

• Fantasy sports betting is legal in Alabama.