HB588 Alabama 2025 Session

Summary

Primary Sponsor

Kelvin LawrenceRepresentative

Democrat

Session

2025 Regular Session

Title

Taxation; historical horse racing computerized machines; state and local privilege tax levied on pari-mutuel wagering on historical horse racing machines; local taxes repealed

Summary

HB588 would tax historical horse racing machines with a new 4% state tax and 8% local tax on net gambling revenues, replacing existing pari-mutuel taxes and applying to four Alabama facilities starting October 1, 2025.

What This Bill Does

The bill replaces the current state horse wagering tax with a uniform 4% state privilege tax and adds an 8% local privilege tax on the net gambling revenues from historical horse racing. The taxes are in lieu of any other state or local taxes, fees, or commissions for this activity, with the state tax collected by the Department of Revenue and the local tax collected by local racing commissions and distributed under local law. It establishes local governance for historical horse racing at the four pari-mutuel facilities and defines key terms to support the new tax structure. The changes take effect October 1, 2025, while keeping existing tax rules for live greyhound/thoroughbred racing and simulcast unchanged and not expanding gaming beyond current permits as of that date.

Who It Affects

• Historical horse racing licensees (the four pari-mutuel facilities) would owe 4% of net gambling revenues to the state and 8% to local authorities, replacing prior taxes on these activities.
• State and local government entities (Department of Revenue and local racing commissions) would be responsible for collecting the new taxes and distributing funds according to local laws.

Key Provisions

• Establishes a state privilege tax of 4% and a local privilege tax of 8% on net gambling revenues from pari-mutuel wagering on historical horse racing computerized machines at the four facilities; taxes are collected by the Department of Revenue (state) and by local racing commissions (local).
• Taxes are in lieu of any other state or local taxes, fees, or commissions related to historical horse racing pari-mutuel wagering; repeals several existing taxes related to pari-mutuel wagering at other locales.
• Defines key terms (Historical Horse Racing Computerized Machines, Net Gambling Revenues, Pari-Mutuel, Pari-Mutuel Pool) and sets governing authority and collection procedures at the four facilities.
• Repeals specified existing tax sections (11-65-29, 11-65-30, 11-65-35, 45-32-150.13, 45-44-150.12, 45-49-151.14) related to pari-mutuel wagering.
• Effective date: October 1, 2025.

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

Subjects

Gaming