Senate Approves Georgia Sports Betting Bill, But With Major Tweak

Dec 2, 2023; Atlanta, GA, USA; Alabama Crimson Tide quarterback Jalen Milroe (4) warms up before the SEC Championship against the Georgia Bulldogs at Mercedes-Benz Stadium. Mandatory Credit: John David Mercer-USA TODAY SportsThe Georgia Senate approved sports betting bill SB 386 by a 35-15 voteThe bill was amended to require a constitutional amendment to become legalIf approved by the House, Georgia voters would decide its fate during the November general election

A Georgia sports betting bill is on its way to the House after being approved by the Senate this morning, albeit with a massive change to how sports betting will be legalized in the Peach State.

Sen. Clint Dixon’s (R-45) sports betting bill, SB 386, was approved 35-15 by members of the Senate, but amended to require a constitutional amendment before going into effect.

If approved by the House of Representatives, Georgia voters would have the final say on sports betting at the 2024 November general election. If approved by voters during the upcoming election, sports betting would likely launch in 2025.

Constitutional Amendment Now Necessary for Legalization

Dixon’s bill legalizes online sports betting for 16 license holders in the state and called for the Georgia Lottery to regulate the games. Unlike previously introduced bills, Dixon’s piece of legislation did not call for a constitutional amendment for sports betting legalization, as sports betting would be classified as a lottery game and tax revenues would be earmarked by the lottery to fund pre-kindergarten programs and HOPE scholarships.

However, Sen. Bill Cowsert (R-46) proposed an amendment to the bill this morning requiring it be approved through a constitutional amendment. Without an amendment, Cowsert warned sports betting would be challenged in the courts and held up by opponents for years. An amendment would also allow regulators to use sports betting tax revenue to support other avenues outside of pre-kindergarten programs and HOPE scholarships, such as problem gaming services for state residents.

“A constitutional amendment does not undermine the purposes or guidelines of this bill,” he told the Senate.

Earlier this year, Cowsert introduced his own sports betting bill (SB 172) which calls for sports betting legalization through a constitutional amendment. It has not yet been heard in committee.

Sen. Derek Mallow (D-2) had strong words for his colleagues and those with a desire to either vote down the sports betting bill, delay the bill, or tack on the need for a constitutional amendment. This bill would enable a fully funded and universal Pre-Kindergarten program for all children in the state. There is currently a lottery that awards spots in the state’s program to families.

“I promise all of you that without this bill those kids will still be on a lottery for Pre-K,” he warned.

Dixon also urged his colleagues to reject the amendment, saying it could open the door to casinos arriving in the state and deflect much needed educational funding for young Georgians.

“I’m asking that you vote down this amendment. All the funding will go to the Georgia lottery, it will go to funding Pre-K, HOPE, and Zell Miller Scholarship. As education chairman in the senate, I can tell you there’s a great need for this. We need more pre-k and infrastructure for Pre-K,” he said.

Despite his warnings, the amendment was approved by a 34-7 vote. The bill now heads to the Georgia House of Representatives and will await a committee hearing.

Likely No Sports Betting Until 2025

With the need for a constitutional amendment, the chances of Georgia sports betting launching this year have dwindled to zero if this bill passes. If approved by the house, Georgia voters would have the final say on sports betting legalization during the Nov. 5, 2024, general elections in the state.

The issue of sports betting legality in the state and the most effective trigger has been hotly debated over the past few years. Sports betting has its proponents in Georgia, but it seems as if the party has been split on the question of the necessity for a constitutional amendment.

Sen. Carden H. Summers (R-13) said he supports sports betting in the state, but putting it to a vote through a constitutional amendment would be the best way to ensure its chances. The Georgia Lottery, he reminded his colleagues, was approved in the early 1990s by Georgia voters through a similar process.

“I believe that people of Georgia are smart enough to decide whether they want to remove the gambling prohibition in our constitution. We need to let the people of Georgia vote on this…Let’s let people vote to decide what they want in Georgia, just like we let them vote for the lottery,” he said.

An amendment would likely negate any legal challenges from outside parties if approved, but set the timeline back for launch until 2025 if approved by the House.

Sports Betting Bill Details

Dixon’s bill sets the sports betting tax rate at 20% of adjusted gross revenue. Licenses would cost $1 million annually to renew and applicants would have to pay a $100,000 application fee. It would allow for bets on college sports.

The bill accounts for a total of 16 online sports betting licenses, with the numbers breaking down as follows:

Five for Georgia professional sports teams (Atlanta Hawks, Atlanta Falcons, Atlanta Braves, Atlanta United FC, and Atlanta Dream)One for Augusta National Golf CourseOne for the PGA TourOne for Atlanta Motor SpeedwayOne for the Georgia Lottery Corporation

The remaining seven licenses will be awarded by the Lottery Corporation through a public procurement process.