The Georgia general assembly’s crossover deadline for a bill to be sent to the opposite chamber is 6 March. HB 686, a framework for online sports betting, and HR 450, a constitutional amendment, were filed 28 February. As of Monday, they had not been assigned to a committee.
Similar legislation was filed earlier in the session in the senate. Fox 5 Atlanta reported that the senate regulated industries and utilities committee did not advance the constitutional amendment 27 February.
In the house, the package of bills would legalise only digital sports betting and send voters the decision on whether to do so by referendum. Should the legislation pass, it would create an open, competitive marketplace with the Georgia Lottery Corporation as the regulator. The lottery would also be able to have a digital betting platform.
One unusual line in the house proposal is that the regulator “shall not have the power to prescribe a licencee’s maximum or minimum payout or hold percentage”. Most states do not regulate hold percentage, though Tennessee did when it legalised in 2019.
Wagering has been a political football
With regard to legal sports betting, Georgia has been perplexing. Stakeholders had an agreement as early as 2020, but the Democrats killed it in retaliation for the Republicans’ redistricting decision. Since then, there has been little consensus. A key sticking point is how tax revenue from wagering would be used.
Georgia remains the biggest US state not named California or Texas without legal sports wagering. Should it legalise this year, it would be the sixth-biggest market in the US. Border states Florida, North Carolina and Tennessee all have legal digital betting. Alabama and South Carolina do not have any form of legal betting.
Sports teams, Augusta could be licensed
The new legislation allows for 16 licences in total, including seven stand-alone licences. The other nine would be allocated to the MLB Atlanta Braves, WNBA Atlanta Dream, NFL Atlanta Falcons, NBA Atlanta Hawks, MLS Atlanta United FC, Augusta National Golf Club, the PGA Tour, Atlanta Motor Speedway and the Georgia Lottery.
The constitutional amendment would go on the November 2026 ballot, and the proposal sets a 31 July 2027 launch date. HR 450 would become effective 1 January 2027. From there, the bills would require the lottery to promulgate rules within 90 days and open an application window. The lottery would be required to approve or deny applications within 90 days of receipt. Any entity that applies within the window would be given “priority” to launch by 31 July.
HB 686 calls for a 20% tax on adjusted gross revenue. It does not allow for college prop bets and doesn’t explicitly allow for funding an account via credit card.
Application fee modest; RG rules laid out
The listed application fee of $100,000 is well below that of other similarly sized US states. If an operator is granted a licence, the licence and renewal fee is $1 million annually. Licences would be valid for five years.
With regard to responsible gambling, the legislation would require operators to craft responsible gambling (RG) programmes and encourage the use of RG tools. It would require the 1-800-GAMBLER help number to be clearly posted on platforms. It would also ban targeting minors in gambling advertising. Interestingly, HB 686 would also allow the lottery to set bet limits for bettors who “exhibit signs of problem gambling or betting or gambling disorder”.
The legislation also spells out that operators must offer three levels of intervention for at-risk players. Operators would be required first to educate the gambler, then offer a video tutorial around RG, and finally to provide access to an RG professional.
The constitutional amendment calls for 15% of the first $150 million in tax dollars to be directed to problem and responsible gambling initiatives. The remaining 85% of tax dollars would be used to fund voluntary pre-K programmes, the HOPE scholarship programme and other educational projects.
The lottery would be required to submit an annual report about problem and responsible gambling in Georgia.
Leagues could request official league data
The proposals stop short of requiring operators to use official league data, but they do allow for pro leagues to request that it be used. In addition, as is standard in other states, a sports governing body would be able to request that betting on certain events be prohibited. The legislation already bans bets on injuries, penalties and similar situations.
Of note, HB 686 would prohibit professional athletes from betting on competition in their own league but allow them to bet on other sports. Amateur or Olympic athletes would be banned from wagering on “any sporting event in which the athlete participates”.
Original article: https://igamingbusiness.com/sports-betting/georgia-sports-betting-bills-time-short/
