Fantasy sports in Georgia are legal, but there is no guarantee it will stay that way.
States across the nation have regulated the activity in different ways. And while the industry is growing in Georgia, state lawmakers have not regulated it or classified it as gambling, even though players can win cash prizes.
Major fantasy sports companies like PrizePicks and FanDuel set up offices in Atlanta, and there’s reason for daily fantasy sports operators to be optimistic. Gov. Brian Kemp presided over a ribbon-cutting ceremony last month at PrizePicks’ new headquarters and lauded the thousands of job opportunities the company brought to the state.
But even as lawmakers and voters have signaled approval of fantasy sports, a 2016 legal opinion handed down to the Georgia Lottery Corp. by then-Attorney General Sam Olens said fantasy games may be illegal.
Fantasy sports and sports betting have blossomed across the country with access to mobile apps and since a 2018 U.S. Supreme Court ruling overturned a prohibition on state-authorized sports betting.
Fantasy sports and betting on games may seem similar, but there are a few key differences.
Fantasy is considered to be a game of skill because participants must pick multiple players across a league from multiple teams and monitor their performances throughout a game or season. Participants also don’t play against operators such as PrizePicks but rather against other players. Players contribute to a pool that goes to the winners, and fantasy operators take a percentage of that pool.
That’s different from sports betting, where wagers are often placed on a single outcome and participants bet against the operator. Some mathematicians say wagering can require skill to win, but the odds are stacked against participants.
“If you take gambling law in the United States, it’s left up to the states. In 45 states, if there is more skill than luck, it’s not considered gambling,” said Peter Schoenke, a board member of the Fantasy Sports & Gaming Association.
Federal law accepts fantasy sports as legal, but only 27 states have put it into state law, while states like Florida and New York have questioned the legal status of some of PrizePicks’ and other fantasy operators’ more speculative games.
Supporters have lobbied to solidify the fantasy industry’s legal status in Georgia through regulation and establish how the state would spend tax revenue generated from gaming. Lawmakers have introduced multiple proposals in the General Assembly, but none have gained the traction necessary to pass. One reason supporters have urged lawmakers to codify fantasy into state law is to clear doubts about its connection to gambling, which is illegal in Georgia, Schoenke said.
“It’s clear that fantasy sports are legal because it’s a game of skill,” he said. But when states started to question that assumption, Schoenke said industry officials went state-to-state lobbying for legislation to protect it.
Last year, Georgia legislators attempted to pass a bill taxing fantasy sports in Georgia and make the Georgia Lottery Corporation the regulating body for fantasy contests. But that proposal, like many wagering proposals, failed to make it out of the House.
Meanwhile, Georgia’s Legislature has tried for six consecutive years to legalize gambling, and it plans to give it another chance this legislative session.
Sen. Carden Summers, R-Cordele, said he would introduce legislation that would legalize betting and gambling for casinos and horse racing. Legislators face challenges in legalizing gambling because it would require two-thirds support from each legislative chamber to pass a constitutional amendment. Then it would be left to voters to decide via a simple majority on whether to amend the Georgia Constitution.
Fantasy and sports wagering have faced opposition for links to problematic gaming and gambling behavior, but through a patchwork of state laws and independent efforts by companies, that has started to shift.
“A lot of state laws mandate that even fantasy sports, even though it’s legal, still utilize the same resources that gambling and sports betting do, and I think the industry is pretty conscious of that,” Schoenke said. “From a legal perspective, it’s a legal game of skill, but if people are losing money and having problems, then we want them to get help.”
While fantasy sports celebrate economic wins in Georgia, its legal future in the state is uncertain.
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