Will Georgia's Seventh Attempt At Legalized Gambling Pass?

The seventh time is the charm...right? That's what pro-gambling lawmakers are wondering about in Georgia after tabling resolution SR-131 in the state's Senate this session. 

Senate Resolution 131, introduced by Senators Summers, Hickman, Beach, and Anderson, seeks to amend the state constitution to allow sports gambling and casino activities. This is the seventh time the Peach State has debated legalized gambling.

So, let's examine what this resolution would change, whether it could pass, and how soon a launch could occur.

What Does SR-131 Do?

Outside of simply allowing sports gambling and casino activities to exist in the state, the bill creates a rough regulatory framework for such activities; the first is the creation of a gaming commission that would have the power to regulate and tax this new industry.

Regarding taxation, a 20% tax rate on all gross gaming revenues is proposed. This would make Georgia the highest-taxed state in the Southeast region, with Tennessee coming in at 19.7%.

*Proposed tax rates based on most recently tabled legislation

The resolution also has a plan for what to do with the tax revenues collected. The first $2 billion in tax revenues collected would be equally divided amongst the state's counties; afterward, the first $500 million collected annually would be divided up in the same way until a total of $5 billion is sent to the counties in this fashion. After that, all the money would be appropriated by the General Assembly. 

While there is no certainty on how much Georgia will collect in taxes, we could look at neighboring North Carolina for a clue. North Carolina has a similar population and tax rate of 18%; in its first 10 months of legalized gambling the Tar Heel State collected $583 million in tax revenues. Georgia should be able to see similar returns.

Resolution 131 would create at least eight casino gaming licenses with rules stipulating a party couldn't hold more than one license. However, there is no mention of how many such licenses would be created. 

Can SR-131 Pass?

That last point, on casino licenses, shows there's work still to be done on this resolution and is likely a stopping point for the resolution as currently constructed. 

The resolution also doesn't address how many sportsbooks can operate in the state or if they need to partner with a brick-and-mortar casino - like in Mississippi where a recently passed bill requires them to do that.

A minimum of five percent of tax revenues from legal gambling is scheduled to fund addiction prevention and assistance. Assuming Georgia sees the same tax revenue as North Carolina, some $29 million would be poured into those services annually. It's a sizeable sum, but will it be enough to placate those with moral objections to legalized gambling like the Georgia Baptist Mission?

There's a lot of work to do before a bill might pass.

When Could Betting Be Launched?

As this is a constitutional resolution, simply passing this bill isn't enough to legalize gambling - it still needs to be voted on by the public. Should the resolution pass both the House and Senate, voters will be asked to vote yes or no on the following question:

"Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by law for the operation and regulation of sports betting and casino gambling activities in this state?"

With those hurdles and the fact that Georgia's state legislature only meets every other year, the earliest we might see legalized gambling in Georgia is 2027.