The Legal Landscape of Sports Betting in Alabama
As of early 2026, sports betting remains illegal in the state of Alabama. The state has some of the most restrictive gambling laws in the United States, and efforts to legalize sports wagering have consistently faced significant hurdles. While there have been legislative pushes to introduce sports betting, none have been successful to date. A recent bill in 2026, SB 257, aimed to put the question of legalizing a state lottery, casinos, and sports betting to the voters via a referendum. However, the bill has encountered strong opposition within the state Senate and is not expected to pass, mirroring the fate of similar legislative efforts in previous years.
A History of Alabama's Stance on Gambling
Alabama's resistance to gambling is deeply rooted in its history and culture. The state constitution prohibits most forms of gambling, and any expansion requires a constitutional amendment, which is a complex and challenging process. The primary legal forms of gambling in Alabama are pari-mutuel wagering on horse and greyhound racing at specific licensed tracks, and electronic bingo machines operated by the Poarch Band of Creek Indians on their tribal lands. These tribal casinos do not currently offer sports betting.
Available Sportsbooks in Alabama
Currently, there are no legal and licensed sportsbooks operating in the state of Alabama. This includes both online and retail sports betting. While some offshore and unregulated betting sites may be accessible to residents, these platforms operate without any consumer protections and are not recommended. Engaging with these sites can put your personal and financial information at risk.
Types of Bets Available
While you cannot legally place sports bets in Alabama, it is helpful to understand the types of wagers that are commonly available in states where sports betting is legal. When and if Alabama legalizes sports betting, you can expect to see the following options:
- Moneyline: A straightforward bet on which team will win a game.
- Point Spread: A bet on the margin of victory. The favored team must win by a certain number of points, while the underdog can win outright or lose by less than the spread.
- Totals (Over/Under): A bet on the total number of points scored in a game by both teams combined.
- Parlays: A single bet that combines multiple individual wagers. All legs of the parlay must win for the bet to be successful, but the potential payout is much higher.
- Teasers: A type of parlay where you can adjust the point spread or total in your favor in exchange for a lower payout.
- Futures: A long-term bet on an event that will happen in the future, such as which team will win the Super Bowl.
- Prop Bets: Bets on specific events within a game that do not necessarily affect the final outcome, such as which player will score the first touchdown.
Tax Implications for Winnings
Even though sports betting is not legal in Alabama, any gambling winnings are subject to federal and state income tax. If you travel to a state where sports betting is legal and win money, you are required to report those winnings on your tax returns. The IRS considers gambling winnings as income, and you may receive a Form W-2G if your winnings exceed a certain threshold. In Alabama, gambling winnings are taxed at the state's standard income tax rate.
Mobile vs. Retail Betting Options
In states with legal sports betting, there are typically two ways to place wagers: mobile and retail. Mobile betting allows you to place bets from anywhere within the state using a smartphone or computer. Retail betting requires you to visit a physical sportsbook location, such as a casino or racetrack, to place your bets in person. Should Alabama legalize sports betting, it is likely that both mobile and retail options would be considered to maximize accessibility and revenue for the state.
Tips for Bettors in Alabama
Since sports betting is not yet legal in Alabama, bettors in the state have limited options. However, there are still ways to engage with sports in a similar fashion:
- Daily Fantasy Sports (DFS): DFS sites like DraftKings and FanDuel operate in a legal gray area in Alabama and are a popular alternative to traditional sports betting. In DFS, you build a fantasy team of players and compete against other users for cash prizes.
- Neighboring States: Several of Alabama's neighboring states have legalized sports betting, including Tennessee, Mississippi, and Florida. Residents of Alabama can travel to these states to place legal sports wagers.
- Social and Free-to-Play Contests: Many sports media outlets and sportsbooks offer free-to-play contests where you can compete for prizes without risking any money.
Responsible Gaming Resources
Gambling addiction is a serious issue, and it is important to be aware of the risks. If you or someone you know has a gambling problem, there are resources available to help:
- National Council on Problem Gambling (NCPG): The NCPG operates a national helpline at 1-800-522-4700 and offers a wealth of information and resources on their website.
- Gamblers Anonymous: A fellowship of men and women who share their experience, strength, and hope with each other to solve their common problem and help others to recover from a gambling problem.
- Alabama Council on Compulsive Gambling: A state-specific resource that provides information and support for problem gamblers in Alabama.
While the future of sports betting in Alabama remains uncertain, it is clear that there is a growing conversation around the issue. As more states across the country embrace sports wagering, the pressure on Alabama to reconsider its stance is likely to increase. For now, residents will have to continue to wait and see if 2026 will finally be the year that sports betting comes to the Crimson Tide state.