24 LC 36 5799S The House Committee on Economic Development and Tourism offers the following substitute to HB 1329: A BILL TO BE ENTITLED AN ACT To amend Title 50 of the Official Code of Georgia Annotated, relating to state government,1 so as to authorize and provide for the regulation and taxation of fantasy contests in this state;2 to provide for additional powers and duties of the Georgia Lottery Corporation; to change3 certain provisions relating to the shortfall reserves maintained within the Lottery for4 Education Account; to provide for the corporation to license and regulate fantasy sports5 contests-of-skill; to provide for a short title; to provide for legislative findings; to revise and6 provide for definitions; to provide for the corporation's powers and duties relative to fantasy7 contests; to provide for the procedures, limitations, requirements, and qualifications of the8 licensing of any person offering, operating, or managing fantasy contests in this state; to9 provide for rules and regulations promulgated by the corporation; to provide for a privilege10 tax; to require certain reports; to provide requirements for participants; to provide for11 individuals to restrict themselves from being participants; to provide certain resources for12 individuals with problem gaming disorders and to support responsible play; to provide for13 the collection and disposition of fees and fines; to prohibit certain conduct by the14 corporation, employees of the corporation, licensees, and other persons; to provide for certain15 penalties; to provide for construction; to amend Part 1 of Article 2 of Chapter 12 of Title 1616 of the Official Code of Georgia Annotated, relating to gambling, so as to exclude any17 consideration paid to a fantasy contest operator licensee from the definition of "bet"; to18 H. B. 1329 (SUB) - 1 - 24 LC 36 5799S provide for the exemption of persons licensed as fantasy contest operators from regulations19 and restrictions regarding gambling information; to amend Title 48 of the Official Code of20 Georgia Annotated, relating to revenue and taxation, so as to exempt entry fees for fantasy21 contests; to provide for related matters; to provide for effective dates; to repeal conflicting22 laws; and for other purposes.23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:24 PART I.25 SECTION 1-1.26 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended27 in Code Section 50-27-3, relating to definitions for the "Georgia Lottery for Education Act,"28 by revising paragraphs (13) and (20) and adding a new paragraph to read as follows:29 "(11.1) 'Fantasy contest' shall have the same meaning as provided in Code Section30 50-27-122."31 "(13) 'Lottery,' 'lotteries,' 'lottery game,' or 'lottery games' means any game of chance32 approved by the board and operated pursuant to this chapter, including, but not limited33 to, instant tickets, on-line online games, and games using mechanical or electronic34 devices but excluding pari-mutuel betting and casino gambling as defined in this Code35 section."36 "(20) 'Pari-mutuel betting' means a method or system of wagering on actual races37 involving horses or dogs at tracks which involves the distribution of winnings by pools.38 Such term shall not mean lottery games which may be predicated on a horse racing or dog39 racing scheme that does not involve actual track events. Such term shall not mean a40 fantasy contest as defined in Code Section 50-27-122 or traditional lottery games which41 may involve the distribution of winnings by pools."42 H. B. 1329 (SUB) - 2 - 24 LC 36 5799S SECTION 1-2.43 Said title is further amended in Code Section 50-27-9, relating to general powers of the44 Georgia Lottery Corporation, by revising paragraphs (18) and (19) of subsection (a) and45 adding a new paragraph to read as follows:46 "(18) To act as a retailer, to conduct promotions which involve the dispensing of lottery47 tickets or shares, and to establish and operate a sales facility to sell lottery tickets or48 shares and any related merchandise; and49 (19) To perform any actions and carry out any responsibilities provided for in Article 450 of this chapter; and51 (19)(20) To adopt and amend such regulations, policies, and procedures as necessary to52 carry out and implement its powers and duties, organize and operate the corporation,53 regulate the conduct of lottery games in general, and any other matters necessary or54 desirable for the efficient and effective operation of the lottery or the convenience of the55 public. The promulgation of any such regulations, policies, and procedures shall be56 exempt from the requirements of Chapter 13 of this title, the 'Georgia Administrative57 Procedure Act.'"58 SECTION 1-3.59 Said title is further amended in Code Section 50-27-13, relating to disposition of lottery60 proceeds, budget report by Governor, appropriations by General Assembly, and shortfall61 reserve subaccount, by revising paragraph (3) of subsection (b) as follows:62 "(3)(A) Beginning in Fiscal Year 2025, a A shortfall reserve shall be maintained within63 the Lottery for Education Account in an amount equal to at least 50 percent of net64 proceeds deposited into such account for the preceding fiscal year of the average65 amount of net proceeds deposited into such account for the preceding three fiscal years,66 hereinafter referred to as the minimum reserve. Beginning in Fiscal Year 2025 and for67 each fiscal year thereafter, if on the last day of the preceding fiscal year the total reserve68 H. B. 1329 (SUB) - 3 - 24 LC 36 5799S fund balance exceeds the minimum reserve, an amount equal to 10 percent of the excess69 reserve funds, meaning the amount that the total reserve fund balance exceeds the70 minimum reserve, shall be appropriated for educational purposes and programs.71 (B) If the net proceeds paid into the Lottery for Education Account in any year are not72 sufficient to meet the amount appropriated for education educational purposes and73 programs, the shortfall reserve may be drawn upon to meet the deficiency and any74 amount so drawn may count for purposes of appropriations in subparagraph (A) of this75 paragraph.76 (C) If In the event the shortfall reserve is drawn upon and falls below 50 percent of the77 average amount of net proceeds deposited into such account for the preceding three78 fiscal year years, the shortfall reserve shall be replenished to the level required by79 subparagraph (A) of this paragraph in the next fiscal year and the lottery-funded lottery80 funded programs shall be reviewed and adjusted accordingly."81 PART II.82 SECTION 2-1.83 Said title is further amended by adding a new article to Chapter 27, relating to the "Georgia84 Lottery for Education Act," to read as follows:85 "ARTICLE 486 Part 187 50-27-120.88 This article shall be known and may be cited as the 'Georgia Fantasy Contest Consumer89 Protection Act.'90 H. B. 1329 (SUB) - 4 - 24 LC 36 5799S 50-27-121.91 The General Assembly finds that:92 (1) Article I, Section II, Paragraph VIII(c) of the Constitution of the State of Georgia93 authorizes the General Assembly to provide by law for any matters relating to purposes94 or provisions of that subparagraph, including, but not limited to, the operation and95 regulation of a lottery or lotteries and which purposes and provisions may encompass a96 fantasy contest or fantasy contests as a game or games offered by the Georgia Lottery97 Corporation;98 (2) All fantasy contests shall be overseen and regulated by the Georgia Lottery99 Corporation in a manner that provides continuing entertainment to the public, maximizes100 revenues, protects consumers, and ensures that such fantasy contests are operated in this101 state with integrity and dignity and free of political influence;102 (3) The corporation shall be accountable to the General Assembly and to the public for103 the management and oversight of fantasy contests in this state through a system of audits104 and reports;105 (4) The ability to offer fantasy contests in this state under a license issued in accordance106 with this article constitutes a taxable privilege and not a right; and107 (5) Net proceeds of fantasy contests conducted pursuant to this article shall be used for108 the purposes authorized by Article I, Section II, Paragraph VIII(c) of the Constitution.109 50-27-122.110 As used in this article, the term:111 (1) 'Adjusted gross fantasy contest receipts' means the amount equal to the total of all112 entry fees that a fantasy contest operator collects from all participants minus federal113 excise taxes paid on entry fees and the total of all prizes paid out to all participants114 multiplied by the location percentage for this state.115 (2) 'Applicant' means any person that applies for a license under this article.116 H. B. 1329 (SUB) - 5 - 24 LC 36 5799S (3) 'Entry fee' means a nonrefundable cash or cash equivalent payment that is paid by a117 participant and set in advance by a fantasy contest operator granting the participant the118 right to participate in a fantasy contest.119 (4) 'Fantasy contest' means any online fantasy or simulated game or contest of skill with120 an entry fee in which:121 (A) The values of all prizes offered to a winning participant are established and made122 known to the participant in advance of the contest;123 (B) All winning outcomes reflect the relative knowledge and skill of the participant;124 (C) The participant assembles, owns, or manages a fictional entry or roster of actual125 professional or amateur athletes who participate in real-world sporting events;126 (D) A participant competes for prizes awarded by the fantasy contest operator based127 on terms and conditions published by the fantasy contest operator and made known to128 the participant in advance of the contest;129 (E) Winning outcomes are determined solely by clearly established scoring criteria130 based on one or more statistical results of the performance of individual athletes in131 sporting events, including, but not limited to, a fantasy score or a single-statistical132 measure of performance; and133 (F) No winning outcome is entirely based on the score, point spread, or any134 performance of any single actual team or combination of teams or solely on any single135 performance of an individual athlete or player in any single sporting event. Such term136 may include contests wherein participants compete against each other and contests137 wherein only a single participant competes against a target score set by the fantasy138 contest operator. Such term shall not include any fantasy contest without an entry fee.139 (5) 'Fantasy contest operator' or 'operator' shall mean a person that offers fantasy contests140 to members of the public. Such term shall not include an internet service provider or a141 provider of mobile data services merely as a result of such provider transporting general142 traffic that may include a fantasy contest.143 H. B. 1329 (SUB) - 6 - 24 LC 36 5799S (6) 'Large operator' means an operator that, at the time of receiving its initial or renewed144 fantasy contest operator license, has adjusted gross fantasy contests receipts greater than145 or equal to $5 million for the preceding 12 months.146 (7) 'License' means any of the licenses issued by the corporation under this article.147 (8) 'Licensee' means a person that holds a license issued by the corporation under this148 article.149 (9) 'Location percentage' means the percentage rounded to the nearest tenth of 1 percent150 of the total entry fees collected from players located in this state divided by the total entry151 fees collected from all players in this state in the fantasy contest activity.152 (10) 'Minor' means an individual who is under 19 years of age.153 (11) 'Participant' means an individual who participates in a fantasy contest offered by a154 fantasy contest operator.155 (12) 'Person' means an individual or entity.156 (13) 'Principal owner' means a person that owns an interest of 10 percent or more of the157 entity.158 (14) 'Prohibited participant' means any individual prohibited from paying an entry fee159 for a fantasy contest under Code Section 50-27-162.160 (15) 'Sports governing body' means the organization, league, or association that oversees161 a professional sporting event and prescribes final rules and enforces codes of conduct162 with respect to such professional sporting event and participants therein.163 (16) 'Sporting event' means any:164 (A) Professional sporting or professional athletic event, including motor sports,165 sanctioned by a national or international organization or association;166 (B) Collegiate sporting event;167 (C) Olympic sporting or athletic event;168 (D) Sporting or athletic event sanctioned by a national or international organization or169 association;170 H. B. 1329 (SUB) - 7 - 24 LC 36 5799S (E) Sporting or athletic event conducted or organized by a sporting events operator;171 (F) Esports event; or172 (G) Other events authorized by the corporation. Such term shall not include any event173 of which the majority of the participants are under the age of 18 years.174 50-27-123.175 (a) The corporation shall have all powers and duties necessary to carry out the provisions176 of this article and to exercise the control of the fantasy contests in this state as authorized177 by this article. Such powers and duties shall include, but shall not be limited to, the178 following:179 (1) To have jurisdiction, supervision, and regulatory authority over fantasy contests,180 including, but not limited to, regulation and licensure of fantasy contests on mobile181 applications available state wide via the internet;182 (2) To appoint and employ such persons as the corporation deems essential to perform183 its duties under this article and to ensure that such fantasy contests are conducted with184 order and the highest integrity. Such employees shall possess such authority and perform185 such duties as the corporation shall prescribe or delegate to them. Such employees shall186 be compensated as provided by the corporation;187 (3) To enter upon, investigate, and have free access to all places of business of any188 licensee under this article and to compel the production of any books, ledgers, documents,189 records, memoranda, or other information of any licensee to ensure such licensee's190 compliance with the rules and regulations promulgated by the corporation pursuant to this191 article;192 (4) To promulgate any rules and regulations as the corporation deems necessary and193 proper to administer the provisions of this article; provided, however, that, prior to194 October 1, 2024, the initial rules and regulations governing fantasy contests shall be195 promulgated and adopted after a period of public comment. Such initial rules and196 H. B. 1329 (SUB) - 8 - 24 LC 36 5799S regulations and all other rules and regulations of the corporation promulgated and197 adopted pursuant to this article shall not be subject to Chapter 13 of this title, the 'Georgia198 Administrative Procedure Act';199 (5) To issue subpoenas for the attendance of witnesses before the corporation, administer200 oaths, and compel production of records or other documents and testimony of witnesses201 whenever, in the judgment of the corporation, it is necessary to do so for the effectual202 discharge of the duties of the corporation under this article;203 (6) To compel any person licensed by the corporation to file with the corporation such204 data, documents, and information as shall appear to the corporation to be necessary for205 the performance of the duties of the corporation under this article;206 (7) To prescribe the manner in which books and records of persons licensed or permitted207 by the corporation under this article shall be kept;208 (8) To enter into arrangements with any foreign or domestic government or209 governmental agency for the purposes of exchanging information or performing any other210 act to better ensure the proper conduct of fantasy contests under this article;211 (9) To order any audits as the corporation deems necessary and desirable;212 (10) Upon the receipt of a credible complaint of an alleged criminal violation of this213 article, to immediately report such complaint to the appropriate law enforcement agency214 with jurisdiction to investigate criminal activity;215 (11) To provide for the reporting of the applicable amount of state and federal income216 tax levied on persons claiming a prize or payout for a winning entry under this article;217 (12) To establish and administer programs for providing assistance to individuals with218 problem gaming disorders and in furtherance of responsible play, including, but not219 limited to:220 (A) Educating potential participants on the odds or likelihood of winning any monies,221 prizes, or awards;222 H. B. 1329 (SUB) - 9 - 24 LC 36 5799S (B) Establishing and administering programs for educating potential participants about223 responsible play, the warning signs of problem gaming disorders, and how to prevent224 and treat problem gaming disorders;225 (C) Developing and funding responsible education campaigns coupled with prevention226 and education efforts within communities that raise awareness of potential signs or risk227 factors of problem gaming;228 (D) Encouraging the use of harm-minimizing measures by participants, such as229 utilizing limit-setting tools and reviewing personal data and information to make230 informed decisions about fantasy contests;231 (E) Promulgating rules and regulations that enable participants to self-limit with a232 licensee and self-exclude from fantasy contest activities state wide. Any such rules or233 regulations related to self-exclusion shall require the individual seeking self-exclusion234 to provide identifying information, including, at a minimum, full name, address, date235 of birth, and the last four digits of the person's social security number;236 (F) Adopting processes for individuals to express concerns related to problem gaming237 disorders to the corporation;238 (G) Developing state-wide advertising guidelines to ensure that the marketing of 239 fantasy contests is not targeted to minors and does not include content, themes, and240 promotions that have special appeal to individuals with problem gaming disorders; and241 (H) Requiring the electronic posting of signs or notifications on online fantasy contest242 platforms that bear a toll-free number which provides or directs callers to assistance and243 resources for individuals with problem gaming disorders;244 (13) To keep a true and full record of all proceedings of the corporation under this article245 and preserve at the corporation's principal office all books, documents, and papers of the246 corporation; and247 (14) To adopt rules and regulations specific to the manner in which a licensee may248 advertise its business operations as authorized by this article.249 H. B. 1329 (SUB) - 10 - 24 LC 36 5799S (b) The corporation shall not have the power to prescribe a licensee's maximum or250 minimum prize payout of a fantasy contest.251 50-27-124.252 The corporation shall prescribe by rules and regulations:253 (1) Required verifiable technical and operational measures to be used by licensees to254 prevent prohibited participants from taking part in a fantasy contest;255 (2) Identity verification procedures to be used by licensees, which may require the use256 of a reputable independent third party that is in the business of verifying an individual's257 personally identifiable information;258 (3) Requirements of geolocation technology to be used by licensees to verify that a259 participant is not taking part in a fantasy contest from a restricted jurisdiction;260 (4) Compliance with standards to prohibit and detect money laundering or unlawful261 banking practices; and262 (5) Any reserves that shall be maintained by licensees to provide payouts of prizes to263 participants.264 Part 2265 50-27-130.266 (a) Any person offering, operating, or managing a fantasy contest in this state shall be267 licensed by the corporation as a fantasy contest operator.268 (b) An applicant for a license shall submit an application on a form in such manner and in269 accordance with such requirements as may be prescribed by rules and regulations of the270 corporation. Such rules and regulations shall require, at a minimum, that the application271 include the following:272 (1) The name and principal place of business of the applicant;273 H. B. 1329 (SUB) - 11 - 24 LC 36 5799S (2) If the applicant is an entity, identification of the applicant's principal owners, board274 of directors, and officers;275 (3) If the applicant is an entity, the name and address of each principal owner;276 (4) The applicant's social security number or, if applicable, the applicant's federal tax277 identification number;278 (5) Evidence of the applicant's certificate of fitness for fantasy contest affiliation279 pursuant to Code Section 50-27-180. If the applicant is an entity, such evidence shall be280 provided for every individual who is a principal owner;281 (6) The name of any jurisdiction in which the applicant has or is currently offering,282 conducting, or managing a fantasy contest or has applied for or been granted any license,283 registration, or certificate issued by a licensing authority for any fantasy contest or284 gaming activity;285 (7) Any ownership interest that a director, officer, or principal owner of the applicant286 holds in any entity that is or was offering, conducting, or managing a fantasy contest in287 any jurisdiction and the name of such jurisdiction;288 (8) Notice and a description of civil actions filed against the applicant pertaining to the289 payment of taxes to or antitrust or security regulation laws of the federal government, this290 state, or any other state, jurisdiction, province, or country;291 (9) A nonrefundable application fee and annual licensing fee as follows:292 (A) Applicants that are large operators shall pay a nonrefundable application fee in the293 amount of $100,000.00 and an annual licensing fee in the amount of $1,000,000.00; and294 (B) All other applicants shall not be charged an application fee, but shall pay an annual295 licensing fee in the amount of $5,000.00.296 The corporation may, at its discretion, charge a reasonable fee to cover the costs of297 application review and renewal to all applicants not required to pay a nonrefundable298 licensing fee pursuant to subparagraph (B) of this paragraph; and299 H. B. 1329 (SUB) - 12 - 24 LC 36 5799S (10) Any additional information, documents, or assurances required by rules and300 regulations of the corporation.301 (c) The corporation shall review and approve or deny an application for a license or a302 renewal of a license not more than 60 days after receipt of an application.303 (d) Any person that was offering fantasy contests to persons located in the state prior to304 October 1, 2024, may continue to offer fantasy contests until such person's application for305 licensure has been approved or denied in accordance with this article, provided that an306 application for licensure that meets all the requirements of this Code section is filed by307 such person with the corporation on or before the sixtieth day following the corporation's308 publication of such an application for licensure.309 (e) The corporation may waive any portion of the licensure review process excepting the310 licensure and application fees for an applicant that:311 (1) Provides evidence of licensure, registration, or certification in other United States312 jurisdictions; or313 (2) Has been licensed by the corporation or any other authority under the State of314 Georgia as a sports wagering operator.315 (f) A licensee may renew its license by submitting an application on a form in such manner316 and in accordance with such requirements as may be prescribed by rules and regulations317 of the corporation. A licensee shall submit the nonrefundable application fee prescribed318 under paragraph (9) of this subsection with its application for license renewal.319 (g) Each licensee shall have a continuing duty to promptly inform the corporation of any320 change in status relating to any information that may disqualify the licensee from holding321 a license under this article.322 (h) All licenses issued under this article shall be valid for a term of five years unless323 suspended or revoked as provided under this article.324 (i) The corporation may adopt rules and regulations prescribing the manner in which a325 license may be transferred and a fee for a license transfer.326 H. B. 1329 (SUB) - 13 - 24 LC 36 5799S 50-27-131.327 (a) The following persons shall not be eligible to apply for or obtain a license as a fantasy328 contest operator:329 (1) A member of the board of directors or employee of the corporation or an employee330 of a corporation vendor; provided, however, that a corporation vendor as an entity may331 be eligible to apply for or obtain a license;332 (2) An employee of a professional sports team on which the applicant offers a fantasy333 contest;334 (3) A coach of or player for a collegiate, professional, or Olympic sports team or sport335 for which the applicant offers a fantasy contest, or an entity that has an affiliation or336 interest in such a sports team or sport;337 (4) An individual who is a member or employee of any professional sports governing338 body which the applicant offers a fantasy contest;339 (5) An individual or entity with an owner, officer, or director who has been convicted of340 a crime of moral turpitude or similar degree as specified in rules and regulations341 promulgated by the corporation pursuant to this article;342 (6) A person having the ability to directly affect the outcome of a sporting event upon343 which the applicant offers a fantasy contest;344 (7) A trustee or regent of a governing board of a public or private institution of higher345 education;346 (8) An individual prohibited by the rules or regulations of a professional sports347 governing body or sporting events operator of a collegiate sports team, league, or348 association from participating in a fantasy contest;349 (9) A student or an employee of a public or private institution of higher education who350 has access to material nonpublic information concerning a student athlete or a sports team351 unless such access to information is deemed incidental; and352 H. B. 1329 (SUB) - 14 - 24 LC 36 5799S (10) Any other category of persons established by rules and regulations of the353 corporation, that, if licensed, would negatively affect the integrity of fantasy contests in354 this state.355 (b) An individual listed in paragraphs (2) through (10) of subsection (a) of this Code356 section may hold an ownership interest in an applicant or licensee without disqualifying357 the applicant or licensee from obtaining or holding a license; provided, however, that such358 an ownership interest of 25 percent or more shall require approval from the corporation. 359 In determining whether such an ownership interest shall be the basis of disqualification, the360 corporation shall consider whether such interest would negatively affect the integrity of361 fantasy contests in this state and any other factors the corporation shall deem relevant.362 50-27-132.363 A large operator shall contract with a certified public accountant to conduct an annual364 independent audit, consistent with generally accepted standards of accounting and auditing,365 as approved by the corporation. The large operator shall submit a copy of such audit report366 to the corporation.367 Part 3368 50-27-150.369 (a) Notwithstanding any other law to the contrary, there shall be imposed an annual370 privilege tax of 20 percent of a fantasy contest operator's adjusted gross fantasy contest371 receipts in accordance with this Code section. The accrual method of accounting shall be372 used for purposes of calculating the amount of the privilege tax owed by the fantasy contest373 operator.374 (b) The privilege tax imposed under this Code section shall be paid monthly by the fantasy375 contest operator based on its monthly adjusted gross fantasy contest receipts for the376 H. B. 1329 (SUB) - 15 - 24 LC 36 5799S immediately preceding calendar month. The privilege tax shall be paid to the corporation377 in accordance with rules and regulations promulgated by the corporation. If the fantasy378 contest operator's adjusted fantasy contest receipts for a month is a negative number, such379 fantasy contest operator may carry over such negative amount to subsequent months.380 (c) All moneys from privilege taxes and fees collected under this Code section shall be381 distributed and used as provided under Article I, Section II, Paragraph VIII(c) of the382 Constitution.383 Part 4384 50-27-160.385 (a) No person shall knowingly:386 (1) Allow a minor to pay an entry fee or otherwise be a participant;387 (2) Target minors in advertising or promotions for fantasy contests; or388 (3) Accept an entry fee from a prohibited participant.389 (b) If the corporation determines that a person has violated any provision of this Code390 section, the corporation may impose an administrative fine not to exceed $25,000.00 per391 violation or a total of $50,000.00 for violations arising out of the same transaction or392 occurrence.393 50 27 161.394 (a) Except for those individuals who are prohibited participants, an individual who is 19395 years of age or older and who is physically located in this state may take part in a fantasy396 contest in this state as a participant in the manner authorized under this article and the rules397 and regulations of the corporation.398 (b) A fantasy contest operator shall use a geolocation system to ensure that a participant399 is physically present in this state when taking part in a fantasy contest.400 H. B. 1329 (SUB) - 16 - 24 LC 36 5799S 50-27-162.401 (a) The following individuals and categories of individuals shall not, directly or indirectly,402 pay an entry fee for a fantasy contest in this state:403 (1) A minor;404 (2) Any individual who has excluded himself or herself from the ability to participate in405 a fantasy contest offered by the licensee;406 (3) Any athlete who is involved in an activity that is the subject of a fantasy contest;407 (4) Any coach or trainer of an athlete who is involved in an activity that is the subject of408 a fantasy contest;409 (5) Any athlete, coach, referee, trainer, or staff of a team that is involved in an activity410 that is the subject of a fantasy contest; 411 (6) A member, officer, employee, or vendor of the corporation or an officer or employee412 of a vendor of the corporation; or413 (7) A licensee or principal owner, partner, member of the board of directors, officer, or414 supervisory employee of a licensee.415 (b) The corporation may prescribe by rules and regulations additional individuals and416 categories of individuals who are prohibited from paying an entry fee for a fantasy contest417 in this state.418 (c) Any individual who pays an entry fee in violation of this Code section:419 (1) For a first offense, shall be:420 (A) Required to forfeit any prize won as a result of such conduct; and421 (B) Guilty of a misdemeanor and fined not less than $500.00 nor more than $1,000.00;422 (2) For a second offense, shall be:423 (A) Required to forfeit any prize won as a result of such conduct;424 (B) Guilty of a misdemeanor; and425 (C) Fined not less than $5,000.00 or imprisoned for not less than one month nor more426 than five months, or both; and427 H. B. 1329 (SUB) - 17 - 24 LC 36 5799S (3) For a third or subsequent offense, shall be:428 (A) Required to forfeit any prize won as a result of such conduct;429 (B) Guilty of a misdemeanor of a high and aggravated nature; and430 (C) Fined not less than $7,500.00 or imprisoned for not less than three months, or both.431 50-27-163.432 A fantasy contest operator shall not be considered a fantasy contest participant by virtue433 of doing any combination of the following:434 (1) Setting house rules for a fantasy contest;435 (2) Assigning a salary or target score to any eligible athlete or other sporting event436 participant;437 (3) Accepting an entry fee from a fantasy contest participant; or438 (4) Awarding or disbursing prizes as part of a fantasy contest.439 Part 5440 50-27-170.441 (a) Each fantasy contest operator shall adopt a registration policy to ensure that all442 individuals that pay an entry fee are authorized to be participants with a licensee within this443 state. Such policy shall include, without limitation, commercially reasonable mechanisms444 to:445 (1) Verify the identity and age of the registrant;446 (2) Verify that the registrant is not knowingly prohibited from placing a wager under447 Code Section 50-27-162; and448 (3) Obtain the following information from the registrant:449 (A) Legal name;450 (B) Date of birth;451 H. B. 1329 (SUB) - 18 - 24 LC 36 5799S (C) Physical address other than a post office box;452 (D) A unique username; and453 (E) An active email account.454 (b) A participant shall not register more than one account with a licensee, and each455 licensee shall use commercially and technologically reasonable means to ensure that each456 participant is limited to one account.457 (c) Each licensee, in addition to complying with state and federal law pertaining to the458 protection of the private, personal information of each registered participant, shall use all459 other commercially and technologically reasonable means to protect such information460 consistent with industry standards.461 50-27-171.462 (a) A fantasy contest operator shall allow individuals to voluntarily prohibit themselves463 from accessing that participant's registered account with the fantasy contest operator and464 to alternatively place limits on the number of fantasy contests in which they can be465 participants.466 (b) The corporation shall promulgate rules and regulations that require a fantasy contest467 operator to implement responsible fantasy contest programs that shall include, but shall not468 be limited to, prominently displaying messaging designed to prevent problem gaming469 disorders and providing information about how to access resources related to responsible470 play.471 50-27-172.472 Each licensee shall adopt and adhere to a written comprehensive policy outlining its rules473 governing the acceptance of entry fees and payout of prizes offered to winning participants. 474 Such policy and rules must be approved by the corporation prior to the acceptance of entry475 H. B. 1329 (SUB) - 19 - 24 LC 36 5799S fees by a licensee. Such policy and rules must be readily available to a participant on the476 licensee's public website.477 Part 6478 50-27-180.479 (a) As used in this Code section, the term 'department' means the Department of Revenue.480 (b) Each person required under Code Section 50-28-130 to have a certificate of fitness for481 fantasy contest affiliation shall submit to the department an application for such482 certification. Such application shall constitute express consent and authorization for the483 department to perform a criminal background check. Each applicant who submits an484 application to the department for certification agrees to provide the department with any485 and all information necessary to run a criminal background check, including, but not486 limited to, classifiable sets of fingerprints as set forth in subsection (c) of this Code section. 487 The applicant shall be responsible for all fees associated with the performance of such488 background check.489 (c) An applicant who submits an application for a certificate of fitness for fantasy contest490 affiliation to the department shall submit with such application one set of classifiable491 electronically recorded fingerprints to the department in accordance with the fingerprint492 system of identification established by the director of the Federal Bureau of Investigation. 493 The department shall transmit the fingerprints to the Georgia Crime Information Center,494 which shall perform technical searches of the fingerprints as required by the National495 Fingerprint File Qualification Requirements and, thereafter, submit the fingerprints to the496 Federal Bureau of Investigation for a search of the bureau's records. After receiving results497 of the Georgia Crime Information Center's technical searches and the Federal Bureau of498 Investigation's search of its records, the department shall determine whether the applicant499 may be issued a certificate in accordance with subsection (d) of this Code section.500 H. B. 1329 (SUB) - 20 - 24 LC 36 5799S (d) The department shall not issue a certificate of fitness for fantasy contest affiliation to501 any person who has been convicted of, has been found guilty of, or has pled guilty to,502 regardless of adjudication and in any jurisdiction, any felony or any misdemeanor that is503 directly related to gambling, dishonesty, theft, or fraud.504 Part 7505 50-27-190.506 Members of the corporation or designated employees thereof may, during normal business507 hours, enter the premises of any facility of a licensee, or a third party utilized by the508 licensee to operate and conduct business in accordance with this article, for the purpose of509 inspecting books and records kept as required by this article to ensure that the licensee is510 in compliance with this article or to make any other inspection of the premises necessary511 to protect the public interests of this state and its consumers.512 50-27-191.513 (a) The corporation and licensees shall use commercially reasonable efforts to cooperate514 with investigations conducted by law enforcement agencies, including, but not limited to,515 using commercially reasonable efforts to provide or facilitate the provision of account-level516 entry and participation information.517 (b) Licensees shall promptly report to the corporation any information relating to:518 (1) A confirmed breach of a relevant sports governing body's internal rules and codes of519 conduct pertaining to participation in gambling;520 (2) Any conduct that corrupts any outcome related to a sporting event for purposes of521 financial gain, including match fixing; and522 H. B. 1329 (SUB) - 21 - 24 LC 36 5799S (3) Illegal activity, including, but not limited to, the use of funds derived from illegal523 activity, entries to conceal or launder funds derived from illegal activity, multi524 accounting, and using false identification.525 (c) All records, documents, and information received by the corporation pursuant to this526 Code section shall be considered investigative records of a law enforcement agency and527 shall not be subject to Article 4 of Chapter 18 of this title.528 50-27-192.529 (a) The corporation may investigate and conduct a hearing with respect to a licensee upon530 information and belief that the licensee has violated this article. The corporation shall531 conduct investigations and hearings in accordance with rules and regulations adopted by532 the corporation.533 (b) If the corporation determines that a licensee has violated any provision of this article534 or any rules and regulations of the corporation, the corporation may suspend, revoke, or535 refuse to renew a license; impose an administrative fine not to exceed $25,000.00 per536 violation or a total of $50,000.00 for violations arising out of the same transaction or537 occurrence; or both.538 (c) The corporation shall promulgate rules and regulations establishing a schedule of539 administrative fines that may be assessed in accordance with subsection (b) of this Code540 section for each violation of this article; provided, however, that, if the corporation finds541 that a licensee is knowingly allowing prohibited participants to participate in fantasy542 contests in this state, the corporation shall impose a fine against the licensee as follows:543 (1) For a first offense, $1,000.00;544 (2) For a second offense, $2,000.00; and545 (3) For a third or subsequent offense, $5,000.00; or546 (4) If the corporation receives a complaint of prohibited conduct by an athlete, the547 corporation shall notify the appropriate sports governing body of the athlete.548 H. B. 1329 (SUB) - 22 - 24 LC 36 5799S 50-27-193.549 (a) Any person that violates any provisions of this article shall be liable for a civil penalty550 of not more than $5,000.00 per violation, not to exceed $50,000.00 for violations arising551 out of the same transaction or occurrence, which shall accrue to the corporation and may552 be recovered in a civil action brought by or on behalf of the corporation.553 (b) The corporation may seek and obtain an injunction in a court of competent jurisdiction554 for purposes of enforcing this article.555 (c) Costs shall not be taxed against the corporation or this state for actions brought under556 this article.557 50-27-194.558 (a) Fines assessed under this article shall be accounted for separately for use by the559 corporation in a manner consistent with rules and regulations of the corporation.560 (b) The corporation may issue subpoenas to compel the attendance of witnesses and the561 production of relevant books, accounts, records, and documents for purposes of carrying562 out its duties under this article.563 50-27-195.564 (a) A licensee or other individual aggrieved by a final decision or action of the corporation565 may appeal such decision or action to the Superior Court of Fulton County.566 (b) The Superior Court of Fulton County shall hear appeals from decisions or actions of567 the corporation and, based upon the record of the proceedings before the corporation, may568 reverse the decision or action of the corporation only if the appellant proves the decision569 or action to be:570 (1) Clearly erroneous;571 (2) Arbitrary and capricious;572 (3) Procured by fraud;573 H. B. 1329 (SUB) - 23 - 24 LC 36 5799S (4) A result of substantial misconduct by the corporation; or574 (5) Contrary to the United States Constitution, the Constitution of Georgia, or this article.575 (c) The Superior Court of Fulton County may remand an appeal to the corporation to576 conduct further hearings.577 PART III.578 SECTION 3-1.579 Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated,580 relating to gambling, is amended by revising paragraph (1) of Code Section 16-12-20,581 relating to definitions, as follows:582 "(1) 'Bet' means an agreement that, dependent upon chance even though accompanied583 by some skill, one stands to win or lose something of value. A bet does not include:584 (A) Contracts of indemnity or guaranty or life, health, property, or accident insurance;585 or586 (B) An offer of a prize, award, or compensation to the actual contestants in any bona587 fide contest for the determination of skill, speed, strength, or endurance or to the owners588 of animals, vehicles, watercraft, or aircraft entered in such contest; or589 (C) Any consideration paid to participate in a fantasy contest as defined in Code590 Section 50-27-122 and offered pursuant to Article 4 of Chapter 27 of Title 50."591 SECTION 3-2.592 Said part is further amended by revising Code Section 16-12-27, relating to advertisement593 or solicitation for participation in lotteries, as follows:594 "16-12-27.595 (a) It shall be unlawful for any person, partnership, firm, corporation, or other entity to596 sell, distribute, televise, broadcast, or disseminate any advertisement, television or radio597 H. B. 1329 (SUB) - 24 - 24 LC 36 5799S commercial, or any book, magazine, periodical, newspaper, or other written or printed598 matter containing an advertisement or solicitation for participation in any lottery declared599 to be unlawful by the laws of this state unless such advertisement, commercial, or600 solicitation contains or includes the words 'void in Georgia' printed or spoken so as to be601 clearly legible or audible to persons viewing or hearing such advertisement, commercial,602 or solicitation.603 (b) Any person, partnership, firm, corporation, or other entity violating subsection (a) of604 this Code section shall be guilty of a misdemeanor.605 (c) This Code section shall not apply to any advertisement or solicitation for participation606 in a fantasy contest by any person licensed by the Georgia Lottery Corporation under607 Article 4 of Chapter 27 of Title 50 that is concerning such licensee's lawful activities."608 SECTION 3-3.609 Said part is further amended by revising Code Section 16-12-28, relating to communicating610 gambling information, as follows:611 "16-12-28.612 (a) A person who knowingly communicates information as to bets, betting odds, or613 changes in betting odds or who knowingly installs or maintains equipment for the614 transmission or receipt of such information with the intent to further gambling commits the615 offense of communicating gambling information.616 (b) A person who commits the offense of communicating gambling information, upon617 conviction thereof, shall be punished by imprisonment for not less than one nor more than618 five years or by a fine not to exceed $5,000.00, or both.619 (c) This Code section shall not apply to the activities of a person licensed by the Georgia620 Lottery Corporation under Article 4 of Chapter 27 of Title 50 or an employee, agent, or621 other person acting in furtherance of his or her employment or grant of agency by such622 licensee."623 H. B. 1329 (SUB) - 25 - 24 LC 36 5799S PART IV.624 SECTION 4-1.625 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is626 amended by revising paragraph (55) of Code Section 48-8-3, relating to exemptions from627 state sales and use tax, as follows:628 "(55) The sale of lottery tickets authorized by Chapter 27 of Title 50 or entry fees629 authorized by Article 4 of Chapter 27 of Title 50;"630 PART V.631 SECTION 5-1.632 For purposes of promulgating rules and regulations, this Act shall become effective upon its633 approval by the Governor or upon its becoming law without such approval. For all other634 purposes, this Act shall become effective on October 1, 2024.635 SECTION 5-2.636 All laws and parts of laws in conflict with this Act are repealed.637 H. B. 1329 (SUB) - 26 -