Georgia Senate committee gives another push to sports gambling proposal

Published 1:45 pm Thursday, January 11, 2024

ATLANTA — One of many proposals to allow sports betting in Georgia has made its way out of a Senate committee for the second time.

Senate Bill 172, which would authorize and regulate sports betting in Georgia, was favorably reported out of the Senate Regulated Industries & Utilities Committee last year; however, it was tabled on the Senate floor days later after it did not receive the required votes to advance it to the House.

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The bill’s sponsor, Sen. Bill Cowsert, R-Athens, said the bill ultimately calls for a constitutional amendment, which would allow the issue to be placed on a referendum for voters to decide.

“The safe play is to do a constitutional amendment because there will definitely be protracted litigation afterwards contesting anybody that tries to go forward without a constitutional amendment,” he said.

Cowsert said while there is debate on whether a constitutional amendment is required, it is the best way to go for several reasons, especially as it allows voters to dedicate how the revenues and proceeds are spent.

“I really believe the math will prove as we go through this session — and I think last year’s votes did just that — that show there are greater amount of senators that will vote for a bill if it’s predicated on a constitutional amendment,” Cowsert said. “And I think it’s the right thing to do to let the people decide when you’re making a major policy change.”

The proposal would allow sports betting or wagers online, in certain retail establishments, or at kiosks or remote terminals for adults age 21 and older. For example, kiosks could be located inside sports stadiums or bars.

SB 172 also would establish a sports betting commission that would issue licenses to the bookmakers or equipment manufacturers. At least six licenses would be granted initially, according to the proposal.

In a meeting with major sports leagues, Cowsert said their support for sports betting indicates viewership and revenue increases.

Cowsert estimates $50 million to $75 million in revenue to the state of Georgia, lower than the estimated $1.2 billion Georgia Lottery, a form of gambling that allows customers to purchase tickets by choosing numbers in hopes that their numbers will be randomly selected.

One-third of lottery proceeds go to education, including pre-K programs and college scholarships.

Cowsert proposes that 50% of sports betting proceeds be dedicated to needs-based scholarships and 25% to health care and economic development.

An estimated 15% would be allocated to on education to address gambling addictions, proceeds would also go toward other educational programs and promoting sports in Georgia.

Sen. Greg Dolezal, R-Cumming, expressed concern that the proposal did not include the proposed language for the constitutional amendment. He was one of four committee members that voted (8-4) against SB 172.

“(The bill and constitutional amendment) are interrelated, which is why I think they should be looked at together,” Dolezal said. “This is only my sixth session but I’ve never seen a (constitutional amendment) voted out without enabling legislation on this topic or another. There’s a deal made here for funding for something, and I think without that bill being before us, I think it’d be worthwhile for the committee to consider both of those together.”

According to Forbes, sports betting in any form is currently illegal in California, Texas, Idaho, Utah, Minnesota, Missouri, Alabama, Georgia, South Carolina, Oklahoma, Alaska and Hawaii.