HB490 Summary

• Establishes the Alabama Gaming Commission to license and regulate sports wagering activities, with 9-member board appointed by state officials and initial appointments required by January 1, 2026.

• Authorizes online and in-person sports wagering licenses with a 10 percent tax on net gaming revenues quarterly, distributed to State General Fund (40%), Education Trust Fund (40%), and NIL Trust Fund (20%).

• Creates the NIL Oversight Committee to regulate name, image, and likeness compensation for high school and college student-athletes, requiring disclosure of NIL contracts and mandatory financial literacy training.

• Requires 50 percent of student-athlete NIL compensation to be held in trust accounts accessible only upon high school graduation and enrollment in higher education or reaching age 21, with restrictions preventing compensation tied to school attendance.

• Provides state income tax exemption for eligible student-athlete NIL compensation from tax years 2025-2027 if registered with the committee and complying with state rules, with exemption terminating upon completion of NCAA eligibility or professional draft declaration.