First Hearing By Georgia State Senate On Sports Betting Bill

Georgia State Capitol

The Georgia House of Representatives opened the stage for a significant consideration relating to the statewide mobile sports betting. Referred to as Senate Bill 386, this legislative proposal had its initial endorsement from the Georgia Senate in the early part of February.

Crafted by state Senator Clint Dixon, the proposed law is designed to provide a legal structure for mobile sports betting across Georgia. If implemented, this act would facilitate the issuance of up to 16 sports betting licenses, with an intriguing stipulation that ties eight of these licenses to professional sports franchises or organizations within the state.

According to the proposed law, five licenses would be specifically reserved for Georgia’s professional sports franchises:

Beyond this, the PGA of America, the Atlanta Motor Speedway, and the world-renowned Augusta National Golf Club, the home of the Masters tournament, would all be eligible to attain retail and online sports betting licenses. Furthermore, the Atlanta Lottery Corporation is positioned to oversee sportsbook rights, ensuring a comprehensive strategy for sports wagering in the state.

Senator Dixon outlined the key aspects of the bill, emphasizing the inclusion of college sports betting within the proposed legislation, and setting a tax rate of 20% on betting revenue.

Additionally, Dixon revealed the financial specifics of the bill, stating that the application fee for licenses would be set at $100,000. This fee is designed to cover administrative costs and enable a meticulous vetting process for applicants. Moreover, a significant $1 million annual renewal fee was proposed, reflecting ongoing operational expenses and regulatory oversight.

During the hearing, Dixon discussed the potential inclusion of daily fantasy sports in the bill. While some representatives from faith-based and anti-gambling organizations voiced their concerns, representatives from various daily fantasy firms argued for the inclusion of their competitions in the legislation.

Stuart Wilkinson, the Director of Government Affairs at PrizePicks, supported the inclusion of DFS in the bill. He underscored the importance of establishing a framework that other states, in addition to Georgia, could use as a template. Wilkinson suggested that the legalization and regulation of fantasy sports betting could result in tax revenues exceeding those anticipated from sports betting alone.

However, like in every state, there is a faction that opposes the benefits of sports betting revenue over the potential downsides of sports betting. Mike Griffin, the public affairs representative for the Georgia Baptist Mission Board, argues that legislative efforts to address problem gambling, such as SR 579, which mandates a portion of the tax benefits to be allocated towards problem gambling programs, are ineffective.

In Griffin’s words, “There’s no amount of money that can be raised that will overcome the detriments of state-sponsored predatory gambling. The facts and data have already been presented before the U.S. Congress that show for every dollar raised in tax revenue from gambling, it costs another three to five dollars in social costs to the government and the taxpayer.”