The Georgia House Regulated Industries Committee recently voted 13-3 to approve Senate Resolution 841, a constitutional amendment that would allow parimutuel betting, casino gambling and sports betting. If voters approve the amendment, a referendum would be held in each county to determine if voters want gambling there. The same committee passed a similar bill in March but it never made it to the floor for a vote.
Under the proposed legislation, sports betting would be managed by the Georgia Lottery and casinos, with revenue going to the Hope Scholarship program. Revenue from nonlottery-run sports betting, casinos and horseracing would go to a new emergency fund, the state’s general fund and a needs-based educational fund.
The bill’s sponsor, House Economic Development and Tourism Chairman Ron Stephens, said the legislation would help support the state’s economy, which has taken a hit from Covid-19. Stephens compared the need for expanded gambling now to the legislature’s expansion of the film tax credit in 2008 when the state faced an economic catastrophe. “We’re in no different situation today. We need investment in the state of Georgia,” Stephens said.
Now two-thirds of both the House and the Senate—120 state representatives and 37 senators—must vote to approve the measure. Then a majority of voters in host counties must approve it.
Polls indicate a majority of Georgians want expanded gambling. In January, a poll by the Atlanta Journal-Constitution found 64 percent of Georgians surveyed supported casino gambling–up from 56 percent of people surveyed in 2017 when the newspaper last questioned voters about casinos. The poll also showed 57 percent of respondents said they support legalized betting on professional sporting events.
Also last week, the Georgia Senate Special Judiciary Committee voted June 19 to amend House Bill 903 to allow online sports betting platforms such as DraftKings and FanDuel to be offered under the umbrella of the state lottery. But the future of the bill remains in doubt as the committee includes just Democrats, while the Republicans control the full Senate, according to the Associated Press.
State Senator Burt Jones told committee members that legal sports betting could result in an additional $60 million a year for the state.
Lottery money goes to the Hope Scholarship program that helps pay for some students to go to college, and also subsidizes preschool classes across the state. Where it doesn’t go is to help the state’s $2.6 billion budget shortfall for the coming year.
Jones said the growing costs for preschool and college scholarship programs could outstrip slowing lottery revenue growth over the long term.
“The only way to keep that program viable for years to come is to do one of two things: cut costs or find ways to generate more revenue dollars,” Jones said.
Another issue that cropped up: is a constitutional amendment required?
Jones argued that because Georgia voters had already changed the state constitution to allow a lottery, no amendment was needed if sports betting falls under the lottery auspices.
But an attorney for the General Assembly questioned the wisdom of risking a long court battle over whether to put the issue to the voters. A referendum would first require a two-thirds vote of both houses.
Atlanta’s major pro teams support the measure, which allows people to bet from their phones anywhere in the state.
