Betting in Alabama

Alabama is in a tiny club with Alaska, Hawaii, Nevada, and Utah as one of only five states with no state lottery at all. Residents can’t legally buy lottery tickets in-state, so many drive across the border to Georgia, Tennessee, Florida, or Mississippi to play Powerball and Mega Millions instead - taking their money (and potential tax revenue) with them.

The state’s moral hard line on gambling comes with a very real financial leak at its borders.

When Governor Kay Ivey’s gambling study group looked at a full legalization package (lottery, casinos, and sports betting), the estimate was up to $800 million per year in new state revenue. A later legislative proposal suggested between $598 million and $928 million annually from a lottery, limited casinos, and sports betting. Sports betting on its own was a small slice of that pie, but still meaningful.

In other words: while neighboring states cash in, Alabama is intentionally saying “no” to hundreds of millions per year - even as many residents turn to alternative betting options or cross state lines to gamble anyway.

Prediction markets are quietly becoming the most interesting legal alternative for Alabama bettors. Platforms like Kalshi let users trade on real-world outcomes - from elections and inflation rates to entertainment and sports - all within a federally regulated system.

Because these markets are overseen by the Commodity Futures Trading Commission (CFTC) rather than state gambling boards, they’re fully accessible to Alabama residents.

Their appeal lies in simplicity: instead of betting lines, you’re speculating on whether an event will happen - yes or no. That straightforward structure, paired with transparent regulation, has made prediction markets one of the fastest-growing ways for Alabamians to legally engage in real-money wagering.

Sweepstakes sportsbooks and casinos fill the gap left by Alabama’s ban on real-money gambling. Sites like Rebet, Stake.us, and Legendz operate under U.S. sweepstakes law, letting players use virtual currencies such as Gold Coins for fun - while Sweeps Coins can be redeemed for real cash prizes.

These platforms mimic the experience of traditional sportsbooks and casinos, offering slots, blackjack, and all sorts of sports picks - just without crossing state gambling lines. It’s a fully legal system backed by sweepstakes regulations that keep gameplay safe, transparent, and accessible across the state.

The Alabama Attorney General’s Office determined that contests based on individual athlete performance predictions against the house were too similar too prop betting, and therefore not allowed in Alabama.

However, they made the ruling to allow 'Combo Picks', where users select pairs of athletes and pick higher or lower on each pair’s combined stats total.

Most operators in the state offer this mode as peer-to-peer as well, to stay clear from any similarities with sportsbooks. Pick 'Em in Alabama has a legal age of 19.