Bill > SB18

This bill establishes a new 4% state privilege tax specifically on revenues from historical horse racing pari-mutuel wagering activities. The tax will be collected by the Department of Revenue and applies to the "net gambling revenue" which is defined as the total money received from wagering, minus certain deductions like free bets, promotional credits, federal excise taxes, voided wagers, and prize payouts. The bill clarifies that this new tax is separate from and supersedes other existing state taxes on historical horse racing activities. Importantly, the bill emphasizes that it does not change the existing tax structure for live greyhound and thoroughbred racing, and it includes a provision stating that the bill does not authorize or expand any gambling activities beyond what is legally permitted as of January 1, 2026. The act will become effective on the first day of the second month following its passage and approval by the Governor. Pari-mutuel wagering is a betting system where all bets of a particular type are placed together in a pool, and payoff odds are calculated by sharing the pool among all winning bets.

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https://alison.legislature.state.al.us/bill-search