The Georgia House Economic Development and Tourism Committee recently approved a revised version of online sports betting legislation, House Bill 86.
Originally, the bill would have taxed profits at 10 percent; the revision doubles that rate. Committee Chairman Ron Stephens, who said he’d like the tax rate to fall between 10 percent and 20 percent, estimates that taxes from the industry would raise more than $30 million annually, with funds going to the HOPE college scholarship program and public education.
In the state Senate, the Regulated Industries and Utilities Committee recently held a hearing on SB 142, which is similar to the House’s online sports betting legislation. Profits would be taxed at 10 percent. The bill’s sponsor, state Senator Jeff Mullis, said, “Sports wagering is currently legal in 22 states. Around us are Tennessee, Mississippi, Louisiana and Florida is taking it up this year as well. Over 2 million Georgians are doing it now. Do you know who’s in control of it? The bookies.”
Mullis estimates sports wagering could produce $40 million annually for the state. He noted, unlike some lawmakers, most people who play the lottery do not participate in sports betting. “It doesn’t take away from the lottery. It’s extra money,” he said.
Both the House and Senate measures name the state Lottery Commission to be in charge of licensing a minimum of six operators, such as FanDuel or DraftKings, with annual licensing fees of $900,000.
The Atlanta Hawks, Atlanta United FC, Atlanta Falcons and Atlanta Braves all have expressed support for legal sports betting. Attorney Robert Highsmith, who represents the Hawks, told lawmakers, “The Hawks want their fans engaged. If the fans are going to bet on a Hawks game, they want them doing it in a legal, cleanly regulated, in-from-the-cold environment.”
One ongoing argument is whether the state can legalize sports betting without a state constitutional amendment. Last year lawmakers tried to pass a sports betting bill that would have amended the constitution to allow sports betting. Stephens said, “It clearly does not require a constitutional amendment. It’s just a matter of us giving the Georgia Lottery Commission direction and authority they already have.”
Highsmith said the state constitution only expressly prohibits casino gambling, whereas sports betting only requires the legislature to pass a statute authorizing the Georgia Lottery to add sports betting to its current regulatory duties. He noted passing a constitutional amendment would delay sports betting since it would have to appear on the 2022 statewide ballot. But if we do that, it would be at least 2023 before it could be effective. Going the statute route would be cleaner and eliminate that debate,” Highsmith stated.
In addition to the sports betting debate, state Senator Brandon Beach also has proposed a constitutional amendment for a statewide referendum on horseracing, plus a separate bill indicating how the industry would operate in Georgia. Beach’s legislation was discussed at a hearing of the Senate Regulated Industries and Utilities Committee.
Beach said horseracing would produce an economic impact of more than $1 billion a year from gambling as well as horserace breeding. “It’s all private investment. We’re not going to have any public investment in this,” Beach said, adding polls show strong statewide support for legalizing horseracing.
The proposal calls for three mixed-use developments, each with a racetrack, hotels and restaurants. The facilities also could include convention space, entertainment venues and retail shopping. One of the racetrack complexes would be required to be located within 50 miles of Hartsfield-Jackson Atlanta International Airport, with minimum investment of $250 million. The other two would be located outside the metro region with an investment of at least $125 million.
Horseracing revenue would be derived from parimutuel betting during at least 60 days of live racing; betting on simulcast races; and betting on historic horseracing machines. Some of the proceeds would go toward education, health care and rural development, problem gambling services and promoting Georgia’s horseracing and breeding industries.
