In the state of Georgia, a legislative push is underway to bring legal sports betting to its residents. Senate Bill 172, a pivotal piece of legislation, has re-emerged in the Senate to establish a regulated sports betting industry. This bill, introduced by State Senator Bill Cowsert, has sparked a renewed sense of optimism among supporters who believe that 2024 could be the year when sports betting becomes a reality in the Peach State.
The Legislative Path of SB 172
Senate Bill 172 is not a newcomer to Georgia’s legislative scene. Initially submitted in February of the previous year, the bill faced competition from another proposal, HB 380, which shared the same goal of legalizing sports betting. Despite reaching a third reading in the Senate, SB 172 was shelved in August. Now, with the bill back on the table, sponsors are eager to advance it through the legislative process and kick-start legal wagering.
Understanding the Details of the Bill
The latest iteration of SB 172 remains largely consistent with the previous year’s version, proposing similar structures for license fees and taxes. The bill outlines that there will be no cap on the number of licenses issued in Georgia, with the Commission set to issue at least six type one licenses for online sports betting providers and five type two permits for physical betting operations. The application fee for a type one sports betting license is set at $100,000, accompanied by an annual fee of $1.0 million. For a type two sports betting retail license, the application fee is a modest $500, with an annual renewal cost of $1,000.
Regulatory Framework and Taxation
The Georgia Sports Betting Commission will be responsible for overseeing the licensing process. It will also have the authority to suspend or revoke licenses and impose fines of up to $25,000 per breach for violations such as allowing minors to place bets. Licensees must pay tax on their earnings from sports betting, with a privilege tax imposed on adjusted gross income from online sports betting: 25% from parlay bets, proposition bets, live wagers, and 20% from other types of wagers. These taxes are to be paid monthly by type one licensees.
Constitutional Amendment: A Key Hurdle
A significant challenge for SB 172 is the requirement for a constitutional amendment. The current Georgia Constitution prohibits gambling, which means that for sports betting to become legal, it would need two-thirds approval from both the House of Representatives and the Senate, followed by voter approval. Previous attempts to legalize sports betting or other forms of gambling failed during the 2023 session, highlighting the difficulty of this path.
Bipartisan Support and Public Opinion
Despite the challenges, there is a sense of cautious optimism. State Senator Bill Cowsert is hopeful, citing constituent support as a driving force behind the push for legalization. He, along with other lawmakers like Senators Carden Summers and Brandon Beach, is planning additional amendments to bolster the bill’s chances. The support from the Senate Regulated Industries and Utilities Committee, which voted 8-4 to advance the bill, indicates a possibility for sports betting in one of the largest states without legal sports betting.
Economic Impact and Allocation of Proceeds
The potential economic impact of legal sports betting in Georgia cannot be understated. Proponents argue that it could generate significant revenue for the state, which could be allocated to various programs such as prekindergarten classes, HOPE Scholarships, or even needs-based college scholarships. However, there is ongoing debate over how the proceeds from gambling should be used, with some lawmakers advocating for different uses.
The Road Ahead for SB 172
As the bill progresses, it faces a complex landscape of support and opposition. Some Republicans oppose sports betting on moral grounds, suggesting that bipartisan support may be necessary for any bill to pass. Additionally, there are concerns about voting on authorizing bills without clarity on where the money would go, and some dislike bargaining over proceeds allocation.
A Defining Moment for Georgia’s Gambling Landscape
Senate Bill 172 represents a defining moment for Georgia’s gambling landscape. If passed into law, the bill would take effect on January 1st, 2025, marking a significant shift in the state’s approach to gambling.
As the debate continues, all eyes are on the Georgia State Senate to see whether this will be the year that sports betting crosses the finish line. With the bill’s journey far from over, Georgia stands at a crossroads, with the potential for a new era of sports entertainment and economic growth on the horizon.
