The Georgia Senate on Tuesday backed a measure asking voters this November whether they want to make sports betting legal in the state.
Senate Resolution 579 passed the chamber 41-12, sending it to the House, where its chances of passage are uncertain. Since it would change the state’s constitution, the resolution requires support from two-thirds of each legislative chamber.
A similar resolution failed to get the necessary votes in the Senate last year.
Expanding gambling in Georgia has historically been difficult to do because it typically requires amending the state constitution.
“We need to do this,” Senate Regulated Industries Chairman Bill Cowsert, an Athens Republican, told colleagues Tuesday. “I think it’s the politically appropriate thing to do when you make this type of major policy shift in the state. Let the people vote.”
Under the measure, 80% of revenue raised from taxing companies who set up sports betting operations in Georgia would go to fund prekindergarten classes across the state. If pre-K is fully funded, any additional money would go to the HOPE program, which provides college scholarships.
The resolution would direct 15% of revenue to gambling addiction services and 5% to sports promotions.
The resolution calls for the General Assembly to create a gaming commission to regulate sports betting.
Credit: Arvin Temkar/AJC
Credit: Arvin Temkar/AJC
Backers say Georgians already illegally bet nearly $5 billion a year on sports. Georgians can pull up a sports betting website or app on their cellphone and place bets on games — most likely using overseas servers and skirting Georgia’s laws that make the practice illegal. Supporters have also said sports betting could bring anywhere from $30 million to $100 million in revenue to the state each year.
Opponents say, in addition to the moral harm, estimates of spending are exaggerated.
State Sen. Marty Harbin, R-Tyrone, warned that it was leading to gambling addiction in other states.
“Most of that addiction is for young people,” Harbin said. “The addiction is a real addiction, like drugs and alcohol.”
The resolution pairs with Senate Bill 386, which passed earlier in the session.
Under SB 386, the state could issue up to 16 licenses for online sports betting.
Seven licenses would be available to private online sports betting businesses. Companies interested in operating sports betting in Georgia would have to pay a $100,000 application fee and an annual license fee of $1 million. License holders would pay a 20% income tax to the state on the company’s adjusted gross income.
The remaining licenses could be awarded to professional sports teams in Georgia, the Atlanta Motor Speedway, the Masters and the PGA Tour. The Georgia Lottery could also hold a license.
Several variations of sports betting bills have been floated within the Capitol the past six years, and a few have been approved by the Senate. The bills have gone nowhere in the House, where SR 579 will join SB 386 for consideration.
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