SB18 Alabama 2026 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Session

2026 Regular Session

Title

Taxation; state privilege tax on revenues of pari-mutuel wagering activities, levied

Summary

SB18 would impose a new 4% state privilege tax on the net gambling revenue from historical horse racing pari-mutuel wagering, replacing existing taxes on that activity.

What This Bill Does

The bill creates a new section (40-26A-2.1) to levy a four percent tax on the net gambling revenue of licensees handling historical horse racing pari-mutuel wagering. Net gambling revenue is defined as the total money or value received from wagering, minus free bets, free plays, and promotional credits, and after subtracting federal excise taxes, voided wagers, and the total money paid as prizes or winnings. The Department of Revenue would collect this tax, and it would be exclusive of and supersede any other state taxes currently imposed on historical racing pari-mutuel activities. The bill does not change the tax structure for live greyhound and thoroughbred racing or simulcast racing, and it does not authorize more gambling than what is permitted by law as of January 1, 2026. The act becomes effective on the first day of the second month after passage and governor’s approval (or other means by law).

Who It Affects

• Licensees/operators engaged in historical horse racing pari-mutuel wagering who would owe 4% of their net gambling revenue to the state.
• Alabama's Department of Revenue and state government, which would administer and collect the new tax and ensure it supersedes existing taxes on historical racing activities.

Key Provisions

• Creates a new state privilege tax of four percent on the net gambling revenues from historical horse racing pari-mutuel wagering, payable by licensees conducting such wagering.
• Defines net gambling revenue as total money or value received from wagering on historical racing, excluding free bets, free plays, and promotional credits, after subtracting federal excise taxes, voided wagers, and the amount paid out as prizes or winnings.
• The tax is exclusive of and supersedes existing state taxes on historical racing pari-mutuel activities, including the current Section 40-26A-2 privilege tax.
• Does not change the existing tax structure for live greyhound/thoroughbred racing or simulcast racing.
• Effective date: the first day of the second month after passage and governor’s approval (or otherwise becoming law).
• Nothing in the section authorizes more gambling than what is permitted by law on January 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Gaming