State-Level Gambling Legality in Alabama

Alabama maintains one of the strictest legal environments for gambling in the United States. Most traditional forms of gambling, including commercial casinos, online casinos, sports betting, poker, daily fantasy sports, and a state lottery, are prohibited by law. The only exceptions are tribal bingo-style casinos operated by the Poarch Band of Creek Indians and charitable gaming (such as bingo and raffles), which are permitted in certain counties under local ordinances.
Because the state does not have a commercial gambling industry, there is no dedicated state regulatory agency. Oversight of tribal operations falls under the federal Indian Gaming Regulatory Act (IGRA), while charitable games are locally monitored at the county level. Over the years, Alabama lawmakers have introduced bills to establish a lottery, expand tribal gaming compacts, or legalize sports betting, but none have successfully passed. As a result, Alabama remains one of the least gambling-friendly states in the country.
Gambling laws in Alabama are primarily based on the state constitution and longstanding prohibitions against games of chance. Without significant legislative change, the current framework offers very limited opportunities for legal gambling.
Gambling Taxes in Alabama
Since Alabama does not regulate or license commercial gambling, there is no structured tax system for casinos, online platforms, or sports betting. The only tax revenues connected to gambling come from tribal gaming compacts and charitable activities, which contribute limited funds at the local and federal level.
That said, residents are still required to report gambling winnings as part of their federal income taxes under IRS rules. Alabama does not provide additional state-level frameworks or dedicated tax rates because gambling activity is so restricted.