Alabama Pegged As A State Likely To Legalize Betting In 2027

We’re in the dog days of summer, when little is going on in the world of politics. Well, besides a slew of candidates angling for midterm elections, that is.

But it’s a rather dead period for state law changes. That won’t start happening until 2027, when a new legislature kicks off.

Still, now is a great time to forecast what could change. That’s exactly what Sports Betting Alliance (SBA) Chairman Jeremy Kudon is up to. He’s naming several states that could legalize betting in 2027, and Alabama is one of ’em.

SBA is a lobbying group that tries to advocate for legal sports betting. They are funded by all the top sports betting apps — like BetMGM, DraftKings, and FanDuel — so they carry a lot of weight (and have insider info on a lot of things). That’s why Kudon’s latest statements are noteworthy. Keep reading, and we’ll tell you what he’s predicting come next year.

Why SBA Thinks Alabama Is Finally In Play

“I think you’re going to see a big play next year for sports betting (in Alabama) and maybe the lottery for the first time,” Kudon said.

Those are the exact words out of his mouth on a recent webinar titled, ‘The State of Play: Lessons learned from 2026 U.S. legislative sessions. Notice it’s a one-two punch — Alabama sports betting and even a state lottery. And we do NOT think it’s just wishful thinking on behalf of Kudon either.

Let’s not forget how dangerously close Alabama came to legalizing betting just two years ago. A massive bill covering sports betting, casinos, and a lottery passed the House before getting chopped up in the Senate, and eventually dying by a single vote.

One vote! So this isn’t like Utah suddenly waking up and deciding it loves gambling. There are already plenty of Alabama lawmakers willing to vote yes, and it’s been a topic of conversation year in, year out. So SBA seemingly believes there are enough marginal votes to finally sway things in favor of legalization.

The lottery tidbit is intriguing. Alabama is one of only a handful of states (Alaska, Hawaii, Nevada, and Utah) without one, which means any gambling push could once again be packaged as something much bigger than just sports betting. That makes negotiations a tad more complicated, sure, but it also gives lawmakers more reasons to come to the table.

Prediction Markets Could Change The Political Convo

So where are the extra votes going to be from and why? It’s obvious, isn’t it? The rise of prediction markets is putting pressure on non-legal states like Alabama.

Prediction markets have given Alabama residents a way to wager money on sports despite the local laws. On Kalshi and Polymarket, Alabama users can find “sports contracts” on Rolling Tide football or any other sport, just like they would on a traditional betting app. And the exploding volume coming out of these prediction markets says that’s happening en masse.

“It definitely raises the argument that this is happening right now,” iDEA Growth’s State Advocacy Director John Pappas said on the webinar. “We already knew it was happening with the illegal market, but with all the advertising and popularity of these products, it’s much more in the face of lawmakers now.”

Think about how much easier that makes the sales pitch to legalize inside the state. A few years ago, legalization supporters had to convince politicians and constituents to introduce mobile sports betting into Alabama. Now? They can point to it already happening under the state’s nose, with no tax kickback, too.

That doesn’t guarantee anything in 2027. But prediction markets have certainly handed legalization advocates one heck of a talking point they didn’t have during previous attempts.

Alabama Isn’t The Only State Likely To Legalize

Kudon doesn’t think Alabama will be the only domino to fall in 2027 either. He believes “three or four states” could legalize sports betting in the not-too-distant future, with Nebraska looking like the most likely candidate.

Technically, Nebraska already has in-person sports betting, but online wagers remain illegal. DraftKings and FanDuel have each poured roughly $3.5 million into a 2026 ballot initiative that would change that, and organizers reportedly collected more than 201,000 signatures to confirm the November vote.

“I feel confident with the polling, and I think it all will come down to whether there’s opposition,” Kudon said on the call.

Then there’s Georgia, another longtime holdout that made some real progress this year. A sports betting proposal reached the House floor for the first time before ultimately stalling out. Kudon called that “huge progress” and said prediction markets were part of the discussion there too. Alabama neighbors Georgia so there can be some confluence there, as well.

“I’m very hopeful that we maybe get a couple wins before the end of the year,” Kudon said. “But I think the most important thing is to be focused on 2027.”

Besides a few states that’ll likely never legalize (we’re looking at you, Utah), it seems there’s some real momentum countrywide for the legal industry. You have to think that’s largely due to the explosive rise of protection markets over the past two years, no?