Georgia Senate committee advances bill legalizing sports betting without the need for constitutional amendment

A Georgia sports betting bill, Senate Bill 386, has moved a step closer to potential implementation after the Senate Economic Development and Tourism Committee voted 8-2 to advance the legislation on Tuesday.

The bill proposes the creation of 16 sports betting licenses within the state. If passed, it could be enacted without resorting to a constitutional amendment, which requires a statewide vote, by setting up betting under the purview of the Georgia Lottery Corporation.

Nick Fernandez of the Metro Atlanta Chamber expressed optimism, stating: “We believe this bill has brought a win for Georgia.” The plan is also supported by Atlanta's professional sports teams and has gained traction despite previous setbacks in 2023. The measure now moves to the Senate for more debate.

The bill’s appeal lies in its potential to bypass the need for a constitutional amendment, requiring only a majority vote from both chambers and Governor Brian Kemp's signature. A constitutional amendment would need two-thirds of both the House and Senate before it could go to voters for approval in a statewide referendum.

The bill allocates tax proceeds to prekindergarten classes and HOPE Scholarships for students, aligning with voter-approved mandates from 1992 when the constitution was amended to permit a lottery.

Republican Senator Clint Dixon of Buford defended the measure, emphasizing that the funds would contribute to pre-K and HOPE Scholarships, thus eliminating the need for a constitutional amendment.

However, opponents argue that the bill's constitutionality could be challenged, as voters in 1992 might not have envisioned authorizing sports betting. Mike Griffin, a lobbyist for Georgia's Southern Baptist churches, expressed skepticism: “I don’t believe this end-around is going to work.”

While another Senate committee passed a bill requiring a constitutional amendment earlier this session, the plan has not progressed further. This approach is backed by those advocating for casinos, horse racing betting, and different uses of sports betting taxes. Last year's attempt to pass a constitutional amendment fell short, receiving 30 votes, a majority of senators but less than the 38 needed.

The bill advanced on Tuesday would impose a 20% tax on proceeds after paying prizes to gamblers. Across the United States, tax rates for sports betting range from 6.75% in Iowa to 51% in Rhode Island and New York.

If enacted, the bill would give one license directly to the Georgia Lottery, as well as allocate eight licenses to professional sports entities in the state, including MLB's Atlanta Braves, the NFL's Atlanta Falcons, the NBA's Atlanta Hawks, the WNBA's Atlanta Dream, Major League Soccer's Atlanta United. Other licenses would go to NASCAR's Atlanta Motor Speedway, and golf's Augusta National and PGA.

The Georgia Lottery would be responsible for distributing the remaining seven licenses, unaffiliated with professional sports teams. Those licenses would require a $100,000 application fee and an annual license fee of $1 million.