Alabama Losing Millions to Mississippi's Gambling Boom

Lawmakers hesitant to expand legal gambling despite growing illegal activity and lost tax revenue

Jan. 29, 2026 at 7:23am

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Alabama is missing out on hundreds of millions in tax revenue as residents flock to Mississippi's casinos, while the state struggles to regulate its own growing illegal gambling market. Despite bipartisan support for gambling expansion in recent years, Alabama lawmakers have been reluctant to act, leaving the state's gaming industry in a legal gray area.

Why it matters

Alabama's failure to legalize and properly regulate gambling has allowed an uncontrolled black market to flourish, depriving the state of much-needed tax revenue and enabling criminal activity. Meanwhile, Mississippi is capitalizing on Alabama's inaction, attracting tourists and generating tax dollars to fund important state projects.

The details

Alabama is home to several Native American casinos, historical horse racing facilities, and a thriving illegal gambling market, including unlicensed slot machines and electronic bingo parlors across the state. However, the state collects no taxes on the revenue generated by the Native American casinos, and struggles to crack down on the widespread illegal gambling operations. In contrast, Mississippi's regulated casino industry generated over $1.5 billion in revenue in 2025, much of it from Alabama residents crossing the border to gamble.

  • In 2023, Alabamians gambled more than $2 billion on illegal sports betting.
  • In 2024, Alabamians attempted to access Tennessee online sportsbooks nearly 200,000 times during the NCAA basketball tournament.
  • Last year, it was estimated that nearly $500 million was gambled by Alabamians on the Super Bowl.

The players

Nathaniel Ledbetter

Speaker of the Alabama House of Representatives, who has declined to advance gambling legislation after a previous bill was upended in the Senate.

Garlan Gudger

President Pro Tempore of the Alabama Senate, who has expressed uncertainty about the votes to pass gambling legislation this year.

Poarch Band of Creek Indians

A Native American tribe that operates three successful casinos in Alabama, but pays no state taxes on their gaming revenue due to federal law.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

Alabama's failure to legalize and properly regulate gambling has allowed an uncontrolled black market to flourish, depriving the state of much-needed tax revenue and enabling criminal activity. Meanwhile, neighboring Mississippi is capitalizing on Alabama's inaction, attracting tourists and generating tax dollars to fund important state projects.