Georgia Will Not Have Legal Sports Betting in 2023

Supporters of legalizing sports betting in Georgia will need to wait at least one more year.

During this year’s legislative session, several bills were introduced in the Georgia General Assembly with hopes of legalizing retail and online sports betting. SB 57 specifically aimed to allow up to 18 online sports betting sites and fixed-odds wagering on horse racing.

The Georgia Lottery would regulate all of this, eliminating the need for a constitutional amendment. The bill would have mandated operators to pay a 20% tax rate, with the tax revenue going towards improving the state’s education system.

The use of horse-racing terminology in the bill may have turned off certain lawmakers, resulting in its defeat by a vote of 37-19 on March 2. This left only SR 140 and SB 172, which sought to legalize sports betting in Georgia via a constitutional amendment, but the resolution was rejected by the Senate on March 6.

Although a 30-26 vote was in favor, a two-thirds majority was required for the bill to pass. If successful, mobile sportsbooks such as FanDuel and DraftKings would have been subject to a 25% tax on parlay, prop, and live bets, while regular wagers would have had a 20% tax. This led to the introduction of HB 380 in the House on Feb. 13.

The bill proposed to legalize online sports betting in Georgia, with a 20% tax rate and a tax on revenue from sportsbook promotions. However, the House of Representatives did not discuss HB 380 before the March 7 deadline, leading to no progress on Georgia sports betting legislation this year.

So you’re saying there’s a chance …

According to statistics from the 2022 NFL season, there is a high demand for sports betting in Georgia.

On Super Bowl Sunday, GeoComply, a top geolocation security and compliance firm, revealed that thousands of individuals in Georgia attempted to access and place bets on top sports betting apps outside of the state’s jurisdiction. Approximately 37% of these geolocation checks were related to the Tennessee sports betting market, where major operators like BetMGM and Caesars are present.

During the 2022 NFL season, GeoComply reported 1.4 million attempts by Georgians to access legal sportsbooks in other states. This marks a significant increase in sports betting activity in Georgia, underscoring the growing popularity of the practice in the state. These figures do not account for those who are placing bets through illegal means, highlighting the potential for legalized sports betting in Georgia.

The future outlook for Georgia sports betting

Legalizing sports betting in Georgia has the potential to significantly boost the state’s economy, with an estimated $50 million in annual tax revenue. However, before this financial benefit can be realized, legislative barriers must be overcome.

Every year, some Georgia lawmakers make efforts to expand gambling, but none have been successful since voters approved a state lottery in 1992. There are ongoing debates about the necessity of a constitutional amendment due to Georgia’s ban on pari-mutuel betting and casinos. Additionally, some legislators have concerns about the moral implications of gambling.

During discussions on the recent bills, Sen. Marty Harbin pointed out that the problem with gambling is that there will always be someone who loses.

Currently, Georgia is one of the few states without a legal sports betting market, as over 35 states in the US have already implemented comprehensive sports betting platforms.