Report Illegal Gambling In Alabama

 

Daily fantasy sports is coming back to Alabama.

“In Alabama, sports gambling is already against the law, and the court ruling does not alter that fact.” That ban also remains in effect at the few places in the state where other types of gambling are permitted, such as Atmore’s Wind Creek Casino, owned by the Poarch Band of Creek Indians. In an Associated Press report, Gov. Bob Riley praised the court’s ruling. “These so-called sweepstakes machines are nothing more than dressed-up slot machines. It is time we rid Alabama of these illegal gambling operations, and I’m very pleased the Supreme Court agrees,” Riley said.

More than three years after DFS was declared to be illegal gambling by the state’s attorney general, companies like DraftKings and FanDuel are getting ready to re-enter the market.

Alabama and daily fantasy

Gov. Kay Ivey signed the bill into law, as first reported by Bloomberg Tax. That came after the legislature passed the bill in May. Bills had failed to reach the finish line in each of the past three years.

  1. Illegal, untaxed gambling is thought to be widespread, and the state’s three tribal casinos, limited as they are in what they can offer, attract patrons from all over Alabama.
  2. The Governor's Task Force on Illegal Gambling The Task Force was established by executive order on December 30, 2008. Its mission is to promote and support 'uniform statewide enforcement of Alabama’s anti-gambling laws and to carry out the Alabama Constitution’s strong public policy against lottery schemes and illegal gambling.'

But this year was different, as bills passed both chambers by overwhelming margins.

DFS operators stopped taking customers in the state in 2016 after the attorney general opinion, and have not returned since.

Neither DraftKings nor FanDuel could offer a timeline for a return to Alabama other their intent to do so. FantasyDraft also indicated it would return to Alabama when able.

Illegal

A FanDuel spokesperson offered this statement, however:

We are excited to bring FanDuel Daily Fantasy Sports to the great people of Alabama. We would like to thank Rep. Kyle South, who fought tirelessly to bring fantasy sports back to Alabama. We also are grateful for the support from Speaker McCutcheon, Sen. Del Marsh, and Sen. Tom Whatley. We are working hard to bring our fantasy sports products to Alabama residents and we will have more details very soon.

Casinos

More states with DFS

It’s the second state that has recently reversed course on fantasy sports. Last month, Iowa enacted a sports betting billthat also legalized DFS. All daily fantasy sports companies have stayed out of Iowa because of how existing laws were written, not because of any action taken against DFS.

Once both those states go live — along with most of Louisiana — the number of states that do not have DFS will be reduced to just six:

  • Arizona
  • Hawaii
  • Idaho
  • Montana
  • Nevada
  • Washington

Interestingly, both DraftKings and FanDuel have both added sports gambling to their portfolio of offerings in the past year.

Several states still have negative opinions regarding paid-entry fantasy sports — including Texas, Illinois and Florida — with no new DFS law to make them entirely moot. DraftKings, FanDuel and most other operators still serve all three states.

The Alabama Supreme Court seemed to slam the door shut today on casinos’ hopes of getting their “electronic bingo” machines ruled legal through civil lawsuits brought by friendly district attorneys.

In Etowah Baptist Association v. Entrekin, a unanimous Supreme Court reaffirmed that courts are for settling disputes between two opposing parties, not for giving advisory opinions in cases where local law enforcement officials and gambling interests appear to be on the same page or, at least, do not argue opposing legal positions.

The Supreme Court threw out the trial judge’s order authorizing electronic “bingo” in Etowah County, explaining that the lower court had no jurisdiction to issue a declaratory judgment because the sheriff who requested it never actually opposed the prospective casino operators named as defendants in the lawsuit.

Quoting from a prior case, Justice Tom Parker wrote for the Court, “We are convinced that this lawsuit is a sham, contrived to secure an advisory opinion … and that it presented no justiciable controversy between the parties.”

The ruling is bad news for VictoryLand owner Milton McGregor, who was counting on his local district attorney to file a declaratory judgment action to help the casino get a favorable ruling on the legality of the casino’s “bingo” machines.

Illegal

Attorney General Troy King is on record as supporting the Macon County District Attorney’s approach. But ironically, the Supreme Court quoted from King’s own filings in the Etowah case:

Report Illegal Gambling In Alabama State

We agree with the attorney general “that there was no justiciable controversy in the circuit court. ‘The action must be adversary in character, that is, there must be a controversy between the plaintiff and a defendant, subject to the court’s jurisdiction, having an interest in opposing his claim. Unless the parties have such conflicting interests, the case is likely to be characterized as one for an advisory opinion, … and hence not justiciable.'”