Online Gambling in Alabama

On November 21, 1901, Alabama ratified a new state constitution. It went into effect on November 28 and remains in effect until this day. The 1901 constitution is the 6th in Alabama’s history — and by far the largest (44x the size of the US Constitution).

Most of Alabama’s gambling statutes came about through the 1901 Constitution. Only a few changes have occurred since.

The people of Alabama voted down a proposed state lottery in October 1999. With 96% of the votes reported, 54% voted against the lottery and 46% voted in favor. Gov. Donald Siegelman (D) vowed that the lottery would generate $150 million a year for college scholarships, a prekindergarten program, and computers in school.

After the defeat, Alabama lawmakers did not propose a state lottery for more than a decade.

The Alabama Senate approved a statewide lottery referendum by a 21-12 margin. Two Alabama senators were not present for the vote. Later in 2016, the Alabama House of Representatives failed to pass the bill, so the lottery initiative died in the Alabama House.

The Alabama Senate debated whether to vote on a 2021 lottery bill. After the debate, Alabama Sen. Jim McClendon (R-Springville), the bill’s sponsor, decided to postpone the vote. Sen. McClendon said the vote was “cutting it too close” and he wanted to postpone until a time that he knew the bill would pass.

Alabama residents engage “in gambling if he stakes or risks something of value on the outcome of a contest of chance or a future contingent event not under his control or influence.”

That’s a broad definition of gambling. Essentially, if it’s a game of chance, you can’t bet on it. Alabama doesn’t define a game of skill as something that has elements of chance, so poker, daily fantasy sports, and other skill-based gaming types are still considered illegal gambling.

Alabama defines “the crime of simple gambling” as someone who “knowingly advances or profits from unlawful gambling activity as a player.”

Simple gambling is defined as a Class C misdemeanor. Also, if people support a gambling operation in any ways, they are treated like organizers. This suggests that players at a land-based poker game might be charged with a misdemeanor. If you serve drinks at such a game, you might be charged.

Definition of Nonprofit Organizations: “A bona fide religious, education, civic, senior citizens’, fraternal, or veterans’ organization which operates without profit to its members” can be accredited as a nonprofit charitable organization.

Furthermore, the organization must have “been in existence continuously as such an organization for a period of three years or (be) exempt from taxation by virtue of having been classified as a tax-exempt nonprofit organization by the Internal Revenue Service.”

Alabama allows nonprofit organizations to host charitable gambling, but has a specific definition of “nonprofit” that the organization must fulfill. If the IRS views an Alabama charitable organization as a tax-exempt nonprofit organization for 3 years, then it can host charitable gambling in Alabama. Volunteer fire departments and rescue squads qualify.

Like Greene County, Macon County organizations receive special dispensation to host bingo games. The law states:

“The operation of bingo games for prizes or money by nonprofit organizations for charitable, educational, or other lawful purposes shall be legal in Macon County. The sheriff shall promulgate rules and regulations for the licensing and operation of bingo games within the county.”

Amendment 744 goes on to say that the sheriff is in charge of compliance, while a person must be 19 or older to gamble on bingo. Like the Greene County amendment, an organization must have been in existence for three years before it can receive a license.