Good News and Bad News for Georgia Sports Betting Scene

Things have certainly been progressing in Georgia with regard to their legal sports betting platform. But with most good things, it will definitely take some time. Those hoping for a quick resolution and an ultimate launch of a legal sports betting platform in the state this year will be disappointed with the latest developments while at the same time, those same people may just find a silver lining in the fact that their state legislatures are taking the subject seriously.

On Friday, two Georgia sports betting bills passed through the state Senate - one would see the subject taken to voters in the form of a referendum and the other gives us a glimpse into just what the platform would look like. The dark cloud hovering over all of Georgia's legislative achievements is the fact that if the House agrees with the Senate's proposals, legal sports betting will have to wait until 2023 before it officially launches.

Constitutional Amendment

Georgia lawmakers have been searching for a way to bypass the Georgia State Constitution and bring about some form of legal gambling for its citizens. But after months of legal wrangling, a Constitutional amendment was deemed the only way forward for the legal sports betting scene in the state.

What that means is the subject of legal sports betting appearing on the next election ballot, which comes during mid-term elections in 2022. The idea of bypassing a vote by citizens, skipping a constitutional amendment and expanding the definition of gaming for the Georgia Lottery to include sports betting seems as though it will never come to fruition.

“The constitutional amendment is simply allowing the very people that you represent — the ones that vote for or, or maybe don’t vote for you — you’re allowing them to decide no or yes on sports betting,” said Jeff Mullis, Senate Rules Chairman and sponsor of the legislation, before a vote on Friday.

Bill SR 135

Senate Bill SR 135 was drawn up by lawmakers in Georgia and paves the way for legal sports betting to be left up to voters – in 2022. It only addresses the need for a constitutional amendment and passed Friday in bipartisan fashion by a 41-10 vote, well over the two-thirds needed. It remains unclear as to the necessity of such a move but most evidence is pointing to a "Yes", making a public vote obligatory.

“We had the legislative counsel’s office give us an opinion: does sports betting require a constitutional amendment? And our legislative counsel’s office says yes, it does,” Senate Regulated Industries and Utilities Committee Chairman Bill Cowsert said.

Bill SB 142

Senate Bill SB 142 goes further into what a Georgia sports betting platform would look like. It also passed in the Senate - this time by a 34-17 vote.

The Bill stipulates a 21-minimum age for legal sports betting in the state. SB 142 would pave the way for six online sports betting licenses, each paying a $10,000 application fee and an annual $100,000 operating free. Betting on collegiate sports would be prohibited.

The platform would be taxed at a state-friendly 16% and the regulatory duties for an online-only platform would be put in the capable hands of the state lottery. Tax revenue would go to college-scholarships, rural broadband, and healthcare in rural areas.

What's at Stake

Georgia is 8th-most populous of the 50 United States with almost 11 million residents. It is also home to a robust sports scene and a related enormous underground sports betting industry. In fact, it is estimated that $1.5 billion is wagered illegally on sporting events in Georgia, something that lawmakers are hoping to convert into a taxable industry going forward.

There is certainly no shortage of support for a legal sports betting platform in Georgia. One such proponent, Steve Koonin, the Atlanta Hawks CEO went on record last month saying: “Billions of dollars a year are already being gambled in Georgia and the state gets nothing, no tax, no benefit,”.

The Atlanta Braves, Atlanta Falcons, the Hawks and Atlanta United have also come out in support of a legal sports betting platform as a revenue generator and a mitigator of some of the COVID-19 losses experienced during their "no fans in the stands seasons".

The Next Steps

The Georgia House now gets another crack at the Bills the Senate sent over. The House has had their own ideas about the viability and the optics of a potential legal sports betting platform. The House will require a two-thirds majority to pass any sort of sports betting legislation – it is by no means a slam-dunk.

Georgia’s House of Representatives is expected to further amend the Senate Bills which would kick the proposals over to a special committee made up of both Senate and House members. Out of that should, in theory, come a satisfactory-to-all Bill for Governor Brian Kemp to consider and ultimately sign into law.

Georgia's legislative session is slated to end April 2, meaning that any debate, amendments and proposals will have to be considered by then. Momentum is on the proponents' side and bettors are hoping there is no hiccups along the way or 2023’s potential launch-date could be in jeopardy.