Georgia Inches Closer to Betting But the Clock Is Ticking

Last month, Georgia’s Senate passed a constitutional amendment that would allow local voters to decide whether sports betting will be legalized. The measure has now gotten its first hearing in the House of Representatives.

The Peach State has been mulling over the legalization of sports for several years now. While some have suggested a legalization that doesn’t require changes to the Constitution, the General Assembly believes that a statewide referendum should be held instead.

Under the proposed amendment, sports betting would be regulated by a newly created gaming commission under the Georgia Lottery Corporation. In addition to the constitutional amendment, an enabling bill that details how betting should be regulated was also passed by the Senate.

The former proposal envisions a betting tax of 20%, 80% of which will fund Georgia’s HOPE Scholarships and pre-kindergarten initiatives. Another 15% of the tax would fund problem gambling treatment programs and organizations, while the final 5% will be used for the promotion of sporting events to be held in the state.

As the legalization of betting is tied to the risk of higher problem gambling rates, Sen. Bill Cowsert, the chief sponsor of the legislation, highlighted the importance of protecting local consumers from harm. He pointed out that young men are one of the most vulnerable groups, which is something that should be taken into mind.

In the meantime, Chuck Martin, chair of the House Higher Education Committee argued that the provision that predicts using 5% of the tax money to attract sporting events should be changed. According to him, eligible organizations should instead compete for these funds.

Not In It for the Money, Cowsert Says

The rosier predictions say that Georgia’s sports betting industry could generate more than $100 million in revenue. Cowsert, however, believes that $50 million would be a more accurate prediction. In any case, the senator emphasized that the state isn’t seeking to legalize sports betting for the money but because constituents and sports teams want it.

Despite that, Cowsert added that sports betting would still allow the state to popularize Atlanta’s sports clubs. He said that sporting organizations are especially bullish on getting betting legalized since it will make fans more engaged in their games.

The sports betting legalization efforts are gaining momentum but its supporters should act fast as the 2024 General Assembly session ends next week.