Senate Bill 386, introduced just last week, is making waves in Georgia as it aims to regulate online sports wagering.
This legislative proposal has swiftly passed through the Senate, securing approval by a vote of 35-15.
However, the bill did not escape some last-minute amendments. Now, for the bill to proceed, it requires the support of at least 38 senators.
One of the notable amendments allows the proceeds from sports betting to be allocated to various purposes, including funding needs-based scholarships.
With the Senate’s green light, SB386 now advances to the Georgia House of Representatives for further deliberation and potential approval.
Key provisions within SB386 encompass the regulation of online sports wagering, setting a minimum betting age of 21, and requiring bettors to be physically present within Georgia’s borders.
The Georgia Lottery Corporation would assume responsibility for overseeing the market, including issuing licenses for online betting. These licenses would have a five-year validity period.
There are several types of licenses available, with the primary one being a Type 1 license for online betting.
Operators must pay a $100,000 application fee and a $1.0 million annual renewal fee.
Type 1 license holders can form partnerships with approved service providers who, in turn, need to secure a service license costing $10,000, with an annual renewal fee of $100,000.
An additional supplier license would be available for $2,000, with a $20,000 renewal fee. Georgia would offer a total of 16 Type 1 licenses, eight of which would be tethered to professional sports organizations, seven as standalone licenses, and one linked to the Georgia Lottery.
In terms of taxation, Type 1 license holders would be subject to a 20% tax rate on their adjusted gross income from online sports betting in Georgia, payable on a monthly basis.
Once signed off by the state’s governor, this bill would become effective immediately.
Meanwhile, Senate Bill 172, which also seeks to legalize sports betting in Georgia, resurfaced last month after its initial submission by State Senator Bill Cowsert in February of the previous year.
This bill, unlike SB386, allows both online and retail betting and proposes various license types without specifying tax rates.
Instead, it outlines an annual privilege tax based on adjusted gross income derived from online sports betting.
If passed, SB172 would take effect on January 1, 2025, but it has yet to clear the Senate stage, presenting an alternative approach to sports betting regulation within the Peach State.