The Georgia Senate amended and then passed a sports betting bill that will give the final decision to the voters. But a major obstacle remains as the bill advances to the House.
Taking It to the House
At the beginning of February, SB 386, a sports betting bill, was passed in the Senate and recently another sports betting bill, Senate Resolution 579, was also overwhelmingly approved in the upper chamber with state senators voting 41-12 to bring regulated sports betting to the Peach State. But there was an amendment that stated the voters would have the final say, assuming the House approves.
The latter is a big assumption as many sports betting bills have died in the Georgia legislature and this one may be no different. However, with an increasing number of states legalizing and taxing sports betting proceeds, the additional revenue stream has become more difficult for lawmakers to ignore.
This has become a particularly vexing problem when neighboring states are enjoying the tax dollars from those folks in adjacent, non-gambling states who routinely cross the border to place a bet. The neighboring state’s tax coffers swell off of money that could be spent in the home state if sports betting was permitted.
Now the bill advances to the House where it will require a two-thirds majority to get the bill to the ballot boxes in November where the citizens of Georgia can have their say on the matter. But getting enough support in the House is the primary obstacle as it has been a graveyard for sports betting bills in the past, including one as recently as last year.
“This issue is frustrating because so many of us generally agree about it, but year after year, we’ve seen it get stuck,” said Sen. Jason Esteves, an Atlanta Democrat.
The Pushback
The bill requires that sportsbook operators be taxed at 20% of their adjusted gross profits and pay a $100,000 application fee coupled with a $1 million licensing fee. The tax revenue collected would funnel 80% into pre-kindergarten programs while of the remaining revenue, 15% would be allocated toward problem gambling programs and 5% to the state’s Sports Promotion Fund to attract major sporting events to the Peach State.
However, some legislators are concerned that the societal costs will outweigh any financial gains for the state and have expressed caution when it comes to legalizing sports betting.
Sen. Marty Harbin commented, “The people who vote for the constitutional amendment will not have the knowledge and information that you and I have,” implying that the citizens won’t consider the damage it could wreak on those vulnerable to problem gambling.
Sports betting is estimated to bring approximately $100 million annually to the state but Senator Harbin believes it is money they can do without. “We have the money,” Harbin said. “We have the No. 1 state to do business in. We have a state that is prosperous.”
“(Gambling) addiction is a real addiction. It’s an addiction like drugs and alcohol,” Harbin added.
