New Georgia Sports Betting Bill Introduced, Requires Constitutional Amendment

Georgia quarterback Carson Beck (15) throws a touchdown pass to Georgia wide receiver Rara Thomas (5) during the first half of a NCAA college football game against Kentucky in Athens, Ga., on Saturday, Oct. 7, 2023.A Georgia Senator has introduced a bill to legalize retail and online sports betting in the stateSen. Bill Cowsert (R-46) introduced the legislationThe bill calls for a constitutional amendment to legalize sports betting in the Peach State

Here we go again with Georgia sports betting.

As has been the case for the last several years, a Georgia Senator has introduced a bill to legalize retail and online sports betting in the Peach State. This piece of legislation, sponsored by Sen. Bill Cowsert (R-46), calls for a constitutional amendment to legalize sports betting in the state.

Cowsert introduced a similar piece of legislation last year. It was voted down by the Senate.

Sports Betting Bill Details

SB 172 calls for the creation of the Georgia Sports Betting Commission to regulate and enforce sports betting in the state. The commission will issue sports betting licenses to qualified applicants that are “able to meet the duties of a license holder under this chapter and that the commission determines will be best able to maximize revenues for the state.”

Cowsert’s bill calls for the creation of two types of sports betting licenses. A type 1 license will allow a holder to offer online sports betting and partner with up to one online sports betting company for its services. A type 1 license will cost $100,000 in application fees and $1 million annually to hold.

Type 2 licenses will allow for retail sports betting and will cost $10,000 in application fees and $100,000 annually to hold.

In total, the commission will have the power to authorize at a minimum six type 1 licenses to applicants, with no maximum amount of type 1 licenses being set in the state. Five to 10 type 2 licenses will be awarded by the commission. At least one of the type 1 licenses will be earmarked for the Georgia Lottery.

The piece of legislation sets a 25% tax rate on adjusted gross income for parlays, prop bets, and live bets. It also includes a 20% tax rate on adjusted gross income from all other wagers.

Betting on collegiate sports would be allowed in the bill, yet collegiate prop bets would not be accepted.

Similar Bill Failed Last Year

This is not the first sports betting bill Cowsert has introduced to the Georgia Senate. He introduced a similar bill last year that was ultimately voted down by his colleagues in the Senate chamber.

The Georgia Senate voted down Cowsert’s SR 140, a resolution seeking a constitutional amendment to approve Georgia sports betting, by a vote of 30-26. While a slight majority did vote in favor of the resolution, it required a two-thirds majority to pass.

SR 140, and its companion bill SB 172, hoped to approve Georgia sports betting through a constitutional amendment approved by state voters in November.

Cowsert tabled discussion on SB 172 after SR 140 did not pass. These were the last Senate-introduced sports betting bills available for consideration.

A Constitutional Amendment or Not, that Is the Question

As his legislation did last year, Cowsert’s latest bill will require an amendment of the Georgia constitution to legalize sports betting. If a bill is approved, state voters will take to the polls in the November 2024 Georgia general election to decide on the amendments fate.

If an amendment is approved, it would likely mean a Georgia sports betting launch in late 2025.

Lawmakers in the state have long argued over the necessity of a constitutional amendment to legalize sports betting in Georgia. During the 2024 legislative session, several bills were introduced for the first time that did not seek to legalize through an amendment.

Daniel Wallach, a gaming law attorney, Founder of Wallach Legal and UNHLaw Sports Wagering, told Sports Betting Dime last year that bills seeking state constitutional amendments were likely due to advice from Georgia’s legislative counsel. It’s the path of least resistance, Wallach said, and a strategy for Georgia to avoid any potential lawsuits.

Wallach told Sports Betting Dime that it is his belief, and the belief of several state attorney generals, that the Georgia constitution does not prohibit sports betting.

The state’s constitution is clear, he said, in that it only prohibits three categories of gambling; casino gambling, pari-mutuel betting on horse races, and privately-operated lotteries (with an exception for the state-operated lottery).

Sports betting does not fall within these three categories.