Legalised sports gambling in Georgia is advancing without amendment

The Senate Economic Development and Tourism Committee voted 8-2 yesterday to advance Senate Bill 386, which would create 16 sports betting licences. The measure moves to the Senate for more debate, although its prospects remain unclear after efforts to legalise gambling faltered once again in 2023.

“We believe this bill has brought a win for Georgia,” said Nick Fernandez of the Metro Atlanta Chamber, which supports the plan along with Atlanta’s pro sports teams.

Nationwide, 38 states allow sports betting, Some states allow only in-person bets, although most allow electronic betting from anywhere.

The lure of the bill is that it would only require a majority vote of both chambers and then the signature of Governor Brian Kemp. 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.

At least for now, the measure has backing from some Democrats. That’s key because some Republicans morally oppose gambling. However, Democrats have withheld their votes in other years, seeking to bargain over other issues.

Republican Senator Clint Dixon of Buford argued that the measure is acceptable because tax proceeds would be spent on prekindergarten classes and HOPE Scholarships for students who achieve at least a “B” average in high school, the uses mandated when voters amended the constitution to allow a lottery in 1992.

“There is no constitutional amendment required because all the funds are going to the lottery to fund pre-K and HOPE,” Dixon said.

But opponents warn the measure could be declared unconstitutional, arguing voters would have never believed in 1992 that they were authorising sports betting, then allowed only in person at Nevada casinos.

“I don’t believe this end-around is going to work,” said Mike Griffin, who lobbies for Georgia’s Southern Baptist churches.

A different Senate committee earlier this session passed a bill that would require a constitutional amendment, but there’s been no further movement on that measure. Those measures are backed by those who would like to see casinos and betting on horse racing in Georgia, as well as those who would like to spend sports betting taxes on other purposes.

An effort to pass a constitutional amendment flopped last year when it won 30 votes, a majority of senators but short of the 38 needed. Senators in 2023 also rejected a bill that would have authorised sports betting and betting on horse races without a constitutional amendment.

The bill that advanced yesterday would take 20 per cent of proceeds, after prizes are paid to gamblers, as taxes.

 Nationwide, tax rates are set at anywhere from 6.75 per cent in Iowa to 51 per cent in Rhode Island and New York.