HB588 Summary

• Establishes a state privilege tax of 4% on net gambling revenues from pari-mutuel wagering on historical horse racing computerized machines, collected by the Department of Revenue.

• Establishes a local privilege tax of 8% on net gambling revenues from pari-mutuel wagering on historical horse racing, collected by local racing commissions and distributed per local law.

• Designates the state and local taxes as exclusive and in lieu of any other state or local taxes, fees, or commissions on historical horse racing pari-mutuel wagering activities.

• Repeals six existing sections of Alabama law that previously imposed pari-mutuel wagering taxes in Class 1 municipalities and Greene, Macon, and Mobile counties.

• Takes effect on October 1, 2025, with no expansion of gaming activities beyond what is permitted by law on that date.