Alabama Senator Introduces SB 257 to Put Lottery and Casinos Before Voters

Alabama could soon take its biggest step yet toward legalized gambling. Senator Merika Coleman has introduced Senate Bill 257, a constitutional amendment that would let voters decide whether to authorize a lottery, casinos, mobile sports betting, and a state-run gaming commission.

The proposal, filed February 3, is the latest in a series of gambling reform efforts that have struggled to gain traction in the state. But this time, the approach is notably streamlined: establish the legal authority through the constitution first, then hammer out the specifics later through follow-up legislation

At its core, SB 257 would repeal and replace Section 65 of the Alabama Constitution, the provision that currently prohibits most forms of gambling. If approved, it would:

• Authorize a statewide lottery
• Allow for commercial casinos and both online and in-person sports betting
• Direct the governor to negotiate a Class III tribal gaming compact with the Poarch Band of Creek Indians
• Establish a state gaming commission with regulatory and enforcement powers
• Ban future local-only constitutional amendments related to gambling

Unlike some earlier proposals, SB 257 intentionally avoids spelling out tax rates, revenue sharing, or even the number of casino licenses. Those operational details would be left to future legislation, once constitutional authority is secured.

One major emphasis of the bill is enforcement. Lawmakers have long expressed frustration over the state’s unregulated gambling scene, from machines in gas stations to offshore sites. The proposed gaming commission would include a dedicated enforcement division to address illegal operations head-on.

Like all constitutional amendments in Alabama, SB 257 would need to pass both legislative chambers with a three-fifths majority. If that happens, it would be placed on the ballot for a statewide referendum.

Voters would be asked whether to approve a lottery, casinos, sports betting, a state gaming regulator, and a ban on future local-only gambling carve-outs. A simple majority would be enough to ratify the amendment; something that hasn’t happened since 1999, when Alabama voters rejected a proposed lottery.

The streamlined nature of the bill reflects hard lessons from recent failures. In 2024, a more complex proposal passed the House but died in the Senate by just one vote after lawmakers disagreed over the scope of gambling. In 2025, the issue never even made it to the floor.

Alabama isn’t the only gambling holdout revisiting its laws. In 2026, Hawaii, one of just two states without any form of legal gambling (the other one is Utah), introduced SB 3303 to legalize mobile sports betting. The proposal would authorize digital wagering through licensed operators but prohibit physical sportsbooks or kiosks.

The move signals a broader shift among historically restrictive states toward narrowly defined, digitally-focused gambling legalization, and places Alabama’s latest effort in a wider national conversation.