On Thursday, the Georgia Senate took a significant step toward legalizing sports betting by passing a bill that includes a constitutional amendment, ensuring that Georgia voters will have the final say. This development comes after years of attempts to establish a legal framework for sports gambling in the state.

Details of Senate Bill 386

The proposed Senate Bill 386 received a solid 35-15 vote in favor, surpassing the two-thirds majority needed to amend the Georgia Constitution through a ballot referendum. The bill is now headed to the House for further consideration. Senator Clint Dixon, the bill’s sponsor, expressed reservations about the necessity of the amendment, arguing that previous legal opinions suggested a referendum was not required if sports betting operated similarly to the state lottery.

A Long-Awaited Milestone

The passage of this bill marks a pivotal moment for advocates of legalized sports betting, coming after multiple unsuccessful attempts to bring sports gambling, horse racing, and casinos to Georgia. While there is bipartisan support, lawmakers have debated various issues, including the potential for gambling addiction, revenue distribution, and which types of gambling should be permitted.

Support from Leadership

Lt. Governor Burt Jones commended the Senate for its bipartisan efforts, stating, “We are one step closer to providing tens of millions of dollars to education funding for the next generations of Georgia.” The funds generated from the proposed sports betting framework would contribute to the HOPE scholarship program and pre-K initiatives, with a tax rate set at 20% on revenue.

Constitutional Amendment and Legal Concerns

In a collaborative effort, over 30 legislators from both parties supported the amendment language suggested by Senator Bill Cowsert from Athens. Cowsert, a long-time advocate for sports betting, insisted that any legalization must align with the precedent set by the lottery system approved by voters in 1992. He expressed concern that failing to amend the constitution could lead to legal challenges from faith-based organizations in Georgia, potentially delaying the implementation of sports betting.

If approved by voters this fall, Cowsert’s plan would allow Georgians to begin placing bets as early as January 1, 2025. He emphasized that comparing sports wagering to lottery games to expedite the legislative process was misleading, stating, “There is no way the people in Georgia, when they passed that constitutional amendment for the lottery, believed it would authorize the General Assembly to say that sports betting is a lottery game.”

Key Provisions of the Bill

• Participants must be at least 21 years old to place bets.
• Credit card wagers are prohibited, but electronic transfers via debit cards and mobile payment services are allowed.
• The state would issue 16 licenses, with a $100,000 application fee and a $1 million annual fee for operators.
• Seven licenses would be awarded through a bidding process conducted by the Georgia Lottery, while the remaining licenses would be distributed among major Atlanta sports franchises and other organizations.

Projected Revenue and Concerns

Senator Harold Jones, a Democrat from Augusta, indicated that the state’s projected annual revenue from sports betting could reach $100 million, noting that this figure might be conservative. He highlighted the potential to address funding shortages for pre-K programs, which currently have thousands of children on waiting lists.

Despite the overall support, some legislators voiced concerns that the bill does not adequately distance the gambling industry from Georgia’s professional sports teams. Senator John Albers argued for stronger ethical standards, suggesting that teams should not hold significant ownership stakes in sports betting enterprises to avoid conflicts of interest.

The Path Forward

The push for sports betting in Georgia gained momentum in 2020 when several professional sports teams in Atlanta formed an alliance advocating for legalization. Since a landmark 2018 Supreme Court decision overturned the federal ban on commercial sports betting, nearly 40 states have legalized the practice, reflecting a significant shift in public acceptance.