Despite several years of debate and multiple proposals, the chances of Georgia legalizing sports betting in the near future appear slim. With a substantial state budget surplus of $16 billion, Georgia lawmakers are expressing minimal urgency to create new revenue streams.
Tensions ran high during a late afternoon hearing in the House Higher Education Committee on March 18th, as they discussed SR 579, where one could witness robust exchanges, including fire and brimstone rhetoric, an analogy involving heroin, and a spate of misinformation. Remarkably, amidst the discussion, one lawmaker mistakenly included New York as part of the New England region, which traditionally covers Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
Georgia has been wrestling with the concept of installing a legal framework for mobile sports betting for four years, but consensus among legislators remains elusive. As the legislative session ticks down with just ten days left, the fate of online wagering remains in limbo.
Current debates have hit a snag not only on how potential wagering tax dollars should be spent but also on what regulatory safeguards should be instituted. There is also a lack of agreement on the broader topic of gambling regulation.
When Senator Bill Cowsert introduced his bill, he sought to simplify the issue, framing the amendment as merely allowing a new gambling form under the lottery’s umbrella. Yet, as the layers of the proposal were peeled back, the complexities became apparent. Taxation details would be addressed “later,” and although Cowsert’s bill included a call for a new gambling commission and proposed significant funding for problem and responsible gambling initiatives, it left many questions unanswered.
During the legislative discourse, Mike Griffin, representing the Georgia Baptist Mission Board, passionately opposed legal betting and evoked a powerful biblical scene to underscore his point. Legislators were forced to grapple not only with ethical concerns but with the practical aspects of the proposal as well.
A lack of fundamental understanding of sports betting operations became evident throughout the session. Senator Cowsert, at one point, clarified that potential monthly revenues of $100 million from sports betting likely referred to the total amount wagered – the handle – not the actual revenue or taxes collected by the state.
Amidst the confusion, a proposed 15% set-aside for problem gambling and responsible gaming initiatives came into question, as some lawmakers challenged whether such a high percentage was reasonable. After all, if the tax revenue totaled $100 million monthly, $15 million would be an unprecedented allocation for such programs.
Cowsert exposed gaps in his knowledge of the issue, especially when asked about the cost of problem gambling initiatives and realistic budgeting for such programs. He incorrectly cited a 54% sports betting tax rate for Massachusetts when, in fact, the highest rates are in states like Arkansas, New Hampshire, New York, and Rhode Island, with the actual figure for Massachusetts being 20%.
When it came to clarifying geographies and gambling regulations, there were further blunders. Representative Marcus Wiedower attempted to correct Cowsert’s errors, only to make his own mistake by suggesting New York had a betting monopoly, which it does not.
Despite introducing enabling legislation for a constitutional amendment, which had its hearing without a vote, the path to legalizing sports betting remains convoluted. Senate Bill 386 had proposed up to 16 digital platforms with a 20% tax rate, allocating most tax revenues to the state’s HOPE scholarships. But differences between various bills and constitutional amendments add further barriers to any possible consensus.
The Higher Education Committee plans to reconvene, but there is no commitment to proceed with discussions on sports betting. The educational gap among lawmakers on the subject confirms a lack of engagement that stalls progress. With the legislative clock winding down, Georgians anticipating legal sports betting may have to wait longer than 2024 for any changes to materialize.
