Sports Betting Legalization Push in Georgia Crashes and Burns

Hope and optimism for the legalization of a sports betting platform in Georgia were dashed as politics once again delayed the decision, preventing residents from accessing top sports betting sites.

The 2024 legislative session in Georgia concluded at 1 a.m. on Friday, marking the end of any possibility for a legislated constitutional amendment to allow legal sports betting for voters in the state.

Lawmakers during the 2024 legislative session advanced the concept of legalizing Georgia sports betting, with Senate Bill 386 and Senate Resolution 579 passing in both the Senate and the Georgia House Higher Education Committee. These measures not only support the establishment of a legal sports betting platform in Georgia but also propose a constitutional amendment allowing voters to make the final decision.

Sadly, the bill did not receive a vote on the House floor and remained stuck in the House Rules Committee on Thursday. The disagreement over tax revenue allocation ultimately led to the demise of any hope for legalization this year or even next.

Good momentum to a crashing halt

At the start of the 2024 Georgia legislative session, there was a positive momentum towards passing legislation for a sports betting platform. The Senate voted 35-15 in favor of SB 386 in early February and later advanced the bill with the addition of Senate Resolution 579.

Back then, the suggestions appeared to be sensible. The Senate Resolution proposed to give voters the opportunity to decide on a plan that would grant 16 licenses, tax gross revenues at 25%, and require providers to pay a $100K licensing fee upfront and a $1 million renewal fee annually.

85% of sports betting tax revenue would be allocated to the Educational Opportunity Fund, benefiting pre-k and HOPE Scholarships. The remaining 15% of revenue would be reserved for a problem gaming fund, with a limit of $150 million.

Then the House intervened

Following successful passage through the Senate, SB 386 and SR 579 have now reached the House for further discussion, potential amendments, and final approval. SB 386 only requires a simple majority for passage, while SR 579 will need two-thirds support in the House for approval after being amended by the Senate.

According to Republican Rep. Marcus Wiedower, this enables us to transition individuals from the illegal market to a legal one, regulate and tax it, and ensure the well-being and protection of Georgia residents.

Regrettably, the Bills hit a roadblock. It was revealed on Thursday, the final day of the legislative session, that the Bills lacked the required support to pass in the House, and ultimately, they were not even brought to a vote on the House floor.

Taxes the issue

What was the main obstacle preventing the passage of a legal sports betting Bill and eventual Constitutional Amendment? The allocation of tax revenue.

House Democrats were pushing for changes in how tax revenue from sports betting would be allocated, while Republicans were divided on the benefits of a legalized sports betting system.

In short, the Senate emphasized pre-K funding in their package, whereas the House made adjustments to also allocate deposits for HOPE college scholarships and pre-K initiatives.

Rep. Sam Park proposed allocating 35% of Georgia sports betting revenue to citizens with below-median incomes and another 35% to rural counties across the state.

It’s understandable if you’re feeling confused, but the House’s indecision on tax revenue spending ultimately cost Georgia the opportunity to join 38 other states in benefiting from a legal sports betting platform and the generated tax revenue.

Missing the boat again

Georgia is considered one of the most eagerly awaited new markets for the expanding U.S. legal sports betting industry. With 12.7 million residents, it is the sixth largest state in America and is home to major sports teams such as the NFL’s Atlanta Falcons, the NBA’s Atlanta Hawks, and MLB’s Atlanta Braves. Additionally, Georgia boasts one of the largest college sports programs in the country with the Georgia Bulldogs.

Senator Brandon Beach predicted that Georgia could generate up to $900 million in annual revenue from a legal sports betting platform once it fully develops.

Due to it being an election year in the U.S., the next Georgia State legislative session is not scheduled to begin until 2025. The discussion surrounding the implementation of a legal sports betting platform is expected to resume at that time and has a good chance of passing if lawmakers can reach a consensus on how to allocate the tax revenues generated.

Unfortunately, Georgia sports betting may not become legal until late 2025 or even 2026, leaving legislators and citizens of the Peach State with a frustrating timeline to contend with.