Georgia has sports betting on its mind with deadline approaching
Legislative Developments in Georgia: A Potential Shift Towards Legalized Sports Betting
Recent legislative maneuvers in Georgia have left the future of legalized sports betting hanging in the balance. With the Georgia General Assembly’s critical crossover deadline set for March 6, time is of the essence for two proposed bills: HB 686, which lays the groundwork for online sports betting, and HR 450, a proposed constitutional amendment. Both bills were filed on February 28 but, as of early this week, remain unassigned to any committee.
Earlier this session, similar proposals were introduced in the Senate. However, the Senate Regulated Industries and Utilities Committee opted not to advance the constitutional amendment on February 27, a move that raised concerns among proponents of legalized betting in the state.
These bills aim to exclusively legalize digital sports betting, empowering voters to make the final decision through a referendum. If successful, this legislation would establish a competitive and transparent marketplace, with oversight from the Georgia Lottery Corporation, which would also operate a dedicated digital betting platform.
Interestingly, the House proposal includes a provision stating that the regulator “shall not have the power to prescribe a licensee’s maximum or minimum payout or hold percentage.” This stipulation is notable, as most states do not impose regulations on hold percentages, an attribute unique to Tennessee following its legalization in 2019.
Challenges and Considerations in the Path to Legalization
Georgia’s journey toward legal sports betting has been riddled with challenges. An agreement among stakeholders emerged as early as 2020, but it was derailed when Democratic leaders opposed the proposal in reaction to Republican-led redistricting efforts. Since then, consensus has been elusive, particularly regarding the allocation of tax revenues generated from sports wagering.
As it stands, Georgia is the largest state in the U.S. without legal sports betting, aside from California and Texas. Legalization in 2023 would position Georgia as the sixth-largest market for sports betting in the country, joining neighboring states that have already embraced digital wagering, including Florida, North Carolina, and Tennessee. In contrast, Alabama and South Carolina remain without any legalized betting framework.
Licensing Overview: Opportunities for Sports Teams
The proposed legislation introduces a total of 16 licenses, comprising seven standalone licenses, while the remaining nine would be distributed among major Georgia sports teams, including:
- MLB Atlanta Braves
- WNBA Atlanta Dream
- NFL Atlanta Falcons
- NBA Atlanta Hawks
- MLS Atlanta United FC
- Augusta National Golf Club
- PGA Tour
- Atlanta Motor Speedway
- Georgia Lottery
If approved, the constitutional amendment would be placed on the November 2026 ballot, with a planned launch date for sports betting set for July 31, 2027. The amendment is projected to take effect on January 1, 2027. Consequently, the lottery would be tasked with formulating regulations within a 90-day window and establishing an application period for potential operators. Applications submitted during this period would receive “priority” consideration for the inaugural launch of the betting platform.
Under HB 686, a 20% tax would be levied on adjusted gross revenue, with specific restrictions prohibiting college prop bets and the use of credit cards for funding accounts.
Regulatory Framework: Modest Fees and Responsible Gambling Initiatives
The application fee for prospective operators is pegged at $100,000, significantly lower than fees in other comparably sized states. Once granted a license, operators would incur an annual renewal fee of $1 million, with licenses valid for a five-year term.
In line with responsible gambling (RG) practices, the proposed legislation mandates that operators implement comprehensive RG programs, actively promote the use of RG tools, and display the 1-800-GAMBLER helpline prominently on their platforms. Additionally, marketing efforts will be restricted to avoid targeting minors. Notably, HB 686 would empower the lottery to set betting limits for individuals demonstrating signs of problematic gambling behavior.
The legislation stipulates that operators must develop three levels of intervention for at-risk players, including educational resources and access to RG professionals. Moreover, 15% of tax revenue from the first $150 million would be allocated to problem and responsible gambling programs, while the remaining funds would support early childhood education initiatives and the HOPE scholarship program.
Data Usage and Athlete Restrictions
While the proposed measures do not mandate operators to utilize official league data, it does allow professional leagues to request its use. Consistent with practices in other states, sports governing bodies may also seek to prohibit betting on specific events—this includes prohibitions on wagers concerning player injuries and penalties.
Under the current proposals, professional athletes would be prohibited from betting on competitions within their own leagues. In contrast, they would be permitted to place wagers on other sports. Amateur athletes and Olympians, however, are banned from wagering on any events in which they participate.
As Georgia navigates these complex legislative waters, the potential for a thriving sports betting market reflects both significant challenges and opportunities for economic growth, enhanced consumer protections, and responsible gambling initiatives.
