The sports betting bill in Georgia has been submitted to the House.
The first hearing on the bill for mobile sports betting statewide took place in the GeorgiaHouse of Representatives. There are about two weeks left until the end of the legislative session, and more than five weeks have passed since the SB386 bill was passed in the Senate before it was first considered in the GeorgiaHouse on Tuesday.
At the meeting of the Higher Education Committee of the House of Deputies, no vote was held, and further discussions are possible this week, although the committee chair stated that a vote is not imminent.
Several representatives from companies providing fantasy sports services have expressed support for including their contests in the bill, while representatives from religious groups and opponents of gambling have taken the opposite stance.
The bill will allow for the issuance of 16 licenses for online sports betting, including eight related to professional sports franchises or organizations in the state. An additional seven separate licenses will be available, with one of them designated for the Georgia Lottery, which will also oversee regulation. The bill differs slightly from previous proposals and includes a Senate amendment stating that the final decision will be made by the public. Licenses will be available for all major professional sports teams in Georgia, as well as for Augusta Country Club, the PGA Tour, and Atlanta Motor Speedway/NASCAR.
Six years after the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA), and with more than 35 American jurisdictions currently offering some form of live sports betting, Georgia is the largest state seriously considering a betting proposal this year.
Next is the "combination" of the constitutional amendment and the framework. The bill's sponsor, Senator Clint Dixon, informed committee members that betting on college sports will become possible, with a tax rate of 20%, and accounts can only be funded with cash. The licensing fee will be $100,000, and the annual renewal fee will be $1 million. Tuesday's meeting was more informational, as Dixon answered the committee's questions about adding the constitutional amendment, including fantasy sports in the bill, and how the state will spend the tax revenue from sports betting.
Committee Chairman Chuck Martin clearly stated that the proposal passed by the Senate and the plan for Tuesday involve "voicing the senator's changes to the legislation that defines the conditions for its enactment." Martin mentioned that the Senate amendment, which would add a constitutional amendment to the proposal, does not align with the current proposal. He added that the House will need to "merge" both parts of the legislation before voting.
Is it possible to add fantasy sports to the sports betting bill in Georgia? Regarding fantasy sports, the bill that would allow its use was rejected in the House of Representatives on March 1.
The head of government relations at PrizePicks, Stuart Wilkinson, spoke in support of including fantasy sports in the bill, stating that he shared what he believes could become model legislation not only in Georgia but also in other states across the U.S. Wilkinson also mentioned that the legalization and regulation of fantasy sports betting could generate additional tax revenue exceeding the projected income from sports betting.
Kayla Lott, on behalf of the Fantasy Sports Coalition (representing PrizePicks, Underdog, and Betr), also requested to include fantasy sports in the bill.
Religious and social groups have opposed the bill, with Paul Smith from Citizen Impact stating that it is "bad for Georgia and Georgian families." Dr. John Kent, who claims to speak on behalf of his 13 grandchildren, shared slogans like "Lose your kids to online slots" and "Click your mouse, lose your home." Those against it fear that the social costs associated with the legalization of gambling will outweigh the financial benefits for the state. As an example, Brianna Dura-Shoal from Campaign for Fairer Gambling cited a study conducted in New Jersey, which claims that while the state received $385 million in taxes from the gambling industry, the social costs of welfare benefits, homelessness, and criminal justice amounted to $350 million.
As for the expenditure of tax funds, the bill currently provides for the distribution of revenue between the lottery and educational programs. There has been some discussion regarding further clarification on which educational programs will be funded.
Political football? The Georgian General Assembly is set to adjourn on March 28. Georgian lawmakers have a history of discussing the expansion of gambling, only to either take no action or use it as a political tool. In 2021, lawmakers uniformly supported a bill for mobile betting statewide. At the last minute, Democrats withdrew their votes after the passage of a controversial voting rights law by state Republicans. In 2023 and 2022, there was no consensus, and conflicting opinions were expressed from the anti-gambling lobby.
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