HB161 Alabama 2021 Session

Summary

Primary Sponsor

John W. Rogers

Democrat

Session

Regular Session 2021

Title

Sports wagering, Alabama Sports Wagering Commission, created, commission to issue licenses, authorize sports wagering agreements with other governments, Sec. 13A-12-31 am'd.

Summary

HB161 would legalize and regulate sports wagering in Alabama by creating a state commission, licensing providers, and directing tax revenue to a scholarship fund.

What This Bill Does

HB161 would legalize wagering on professional, collegiate, and other sports events and create the Alabama Sports Wagering Commission to regulate and license these activities. The bill creates four license types: operator, supplier, management services provider, and occupational license, with rules, fees, and background checks for each. It imposes a 10 percent tax on adjusted gross sports wagering receipts and establishes the Alabama Sports Wagering Fund to cover state administration and public college scholarships. It also sets age and location rules, requires betting limits and internal controls, allows wagering agreements with other governments, and establishes penalties and enforcement mechanisms including civil and criminal penalties and property forfeiture.

Who It Affects

• Residents of Alabama who choose to bet on sports would be allowed to wager at licensed facilities or approved mobile platforms, subject to age 21+ and posted betting limits.
• Licensed gaming facilities and related businesses including operators, suppliers, management services providers, and employees with occupational licenses would need to obtain licenses, pay fees, undergo background checks, follow rules, and maintain records.

Key Provisions

• Creates the Alabama Sports Wagering Commission with seven members appointed by state leaders and diverse; regulates and enforces sports wagering laws and rules.
• Authorizes four license types: operator, supplier, management services provider, and occupational license; establishes licensure processes, fees, and renewals.
• Imposes a 10% tax on adjusted gross sports wagering receipts and deposits the revenue into the Sports Wagering Fund, with funds used for administration and scholarships.
• Establishes the Alabama Sports Wagering Fund to finance commission operations and provide scholarships for Alabama public higher education institutions.
• Requires wagering to be limited by age (21+) and betting limits; mandates internal controls and posting of rules and disclosures for patrons.
• Allows sports wagering agreements with other governments, including terms on revenue sharing, regulation, and licensing of participants in signatory jurisdictions.
• Imposes civil penalties up to 50,000 per violation and creates criminal penalties for unauthorized wagering and related offenses; includes property forfeiture provisions.
• Requires background checks, fingerprints, and ongoing inspections; authorizes audits and monitoring; grants exclusive law enforcement jurisdiction at licensed facilities to the state agency.
• Provides exemptions from Alabama criminal gambling statutes for wagering on professional, collegiate, and amateur sports events; includes local funds expenditure considerations under Amendment 621.
• Effective date three months after passage; includes provisions for local and cross-jurisdictional considerations as part of the act.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Gambling