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With the 2026 legislative session nearing its midpoint, the debate over gambling policy is resurfacing in Alabama. Two House Democrats are driving efforts to launch a state lottery and expand gambling.
At a Feb. 11 press conference in the Alabama State House, Reps. Phillip Ensler and Kelvin Lawrence, both Montgomery Democrats, presented two separate proposals. The first seeks voter approval for a statewide lottery; the second aims to expand and regulate pari-mutuel wagering in a select number of counties. Rep. Neil Rafferty appeared alongside them in support.
Their message was clear: Alabamians are already gambling, but they are doing it elsewhere. Rather than sending those dollars across state lines, the lawmakers argued, state officials should work to keep that revenue at home.
The ‘Clean Lottery Act’ explained
Ensler stated he is pushing what he calls the “Clean Lottery Act”, a constitutional amendment to establish an Alabama lottery. While he did not provide full details during the event—and the bill had not been formally filed by the time the press conference concluded—Ensler previewed his intended use for the proceeds.
He said the plan would support public education, increase funding for rural health care, and allow for rebate checks to be sent to Alabama residents.
“For too long, Alabama has lagged behind other states” in finding stable revenue, Ensler said, noting that residents frequently buy lottery tickets in surrounding states. He argued his approach would help Alabama “recoup” money currently being lost to neighbors.
Ensler, who is also running for lieutenant governor, framed the lottery as a tool for creating a steadier revenue stream for the state’s General Fund.
Expanding pari-mutuel betting in Alabama
While the lottery proposal remains pending, Lawrence has already filed House Bill 262. The legislation would allow six counties to offer pari-mutuel betting and legalize computerized systems for historical horse racing at authorized venues.
Pari-mutuel wagering is a pooled betting system where winners are paid out from the total pool after deductions, rather than via fixed odds. HB 262 maintains a focus on a limited network of locations:
- Existing Sites: Jefferson, Greene, Macon, and Mobile counties.
- Proposed Additions: Houston County (via a Class C bingo permit) and Lowndes County (where a bingo hall closed in 2023).
Lawrence said the goal is regulation and taxation. “This bill will ensure that these sites are regulated and appropriately taxed,” he said. The bill synopsis proposes a 4% state privilege tax on net revenues from historical racing.
The constitutional roadblock
Under the state constitution, gambling and lotteries are prohibited, leaving Alabama as the only state east of the Mississippi River without a lottery. Currently, legal gambling is largely limited to facilities operated by the Poarch Band of Creek Indians, which manages casinos in Montgomery, Atmore, and Wetumpka through federal trust agreements.
The last statewide vote on a lottery occurred in 1899, when it was rejected by voters. Since then, legislative efforts have repeatedly stalled due to disagreements over regulation and revenue distribution. A major gambling package in 2024 collapsed after House and Senate leaders clashed over how to allocate the proceeds.
Will leadership fold on gambling?
Ensler and Lawrence are introducing these measures as the session reaches the point where bills without strong leadership backing often fade. Ensler acknowledged he has received no indication that leadership in either chamber is more open to the issue this year than in the past.
However, the two Democrats are betting that public interest and the pressure of out-of-state spending can overcome the internal disputes that have halted prior efforts. Whether that bet pays off will depend on whether legislative leaders decide the issue is worth another floor debate before the session adjourns.
