This bill proposes the implementation of a local privilege tax in Mobile County, specifically targeting the net gambling revenue generated from pari-mutuel wagering on historical horse racing activities. The tax is set at eight percent and will be collected by the Mobile County Racing Commission from historical horse racing licensees. The definition of "net gambling revenue" is clarified to include the total amount received from such wagering, while excluding free bets, promotional credits, and certain taxes and voided wagers. Additionally, the bill stipulates that this new tax will supersede any existing local taxes or fees related to historical horse racing, including those outlined in Section 45-49-151.14 of the Code of Alabama 1975.

Furthermore, the bill ensures that the current tax structure for live greyhound racing and simulcast racing remains unchanged and clarifies that it does not authorize any new forms of gambling beyond what is already permitted by law. The act is set to take effect on October 1, 2026. Notably, the bill includes the deletion of any conflicting local taxes and emphasizes the exclusivity of the newly established privilege tax.