The legalization and taxation of gambling has long been a perennial issue in Alabama, and in recent years, sports gambling specifically has emerged within that conversation.
As betting on sports becomes a mammoth industry legal in 38 states, Alabama is not among them, nor is it capitalizing on the tax revenue generated from its activity within the state.
A new report from Gambling Insider cited the Alabama Policy Institute’s 2023 estimate that legalization could generate between $200 million to $300 million annually for the state.
As hot of a public policy debate that legal gambling has been over the years in the Yellowhammer State, a new kind of online platform is capitalizing on the market.
Last month, sports betting giant FanDuel launched “FanDuel Predicts” in Alabama along with four other states — Alaska, North Dakota, South Carolina and South Dakota.
The platform offers “event contracts” that allow users to buy or sell a Yes/No position on outcomes tied to financial indicators, economics and commodities — and in a limited set of states, including Alabama, it also offers sports-related contracts that function similarly to sports betting.
Sports contracts are currently available only in certain states, which include large non-legal markets like California, Texas and Georgia — along with Alabama and others.
FanDuel Predicts and platforms like it operate under the Commodity Futures Trading Commission.
WAFF 48 News interviewed Alabama House Minority Leader Anthony Daniels on the topic.
He said that since the issue hasn’t been addressed legislatively, the platform will continue operating in Alabama — and the state will not seize any of the economic activity it generates.
“There’s never been closed because we’ve never addressed it legislatively to stop it from happening. It’s just that by adding sports to it, it creates another loophole,” Daniels (D-Huntsville) said. “It’s already happening. People in Alabama are already doing it in other places.”
“The states are not receiving any benefit. The federal government is, but the states are not,” he added.
Michael Brauner is a Senior Sports Analyst and Contributing Writer for Yellowhammer News. You can follow him on Twitter @MBraunerWNSP and hear him every weekday morning from 6 to 9 a.m. on “The Opening Kickoff” on WNSP-FM 105.5, available free online.
