Georgia House Bill HB380 Introduced / Bill

                    23 LC 36 5434
H. B. 380
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House Bill 380
By: Representatives Wiedower of the 121
st
, Martin of the 49
th
, Evans of the 57
th
, McDonald
of the 26
th
, Williams of the 168
th
, and others 
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 sports betting 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 engage in certain activities related to5
sports betting; 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 sports7
betting; to provide for the procedures, limitations, requirements, and qualifications of the8
licensing of any person offering, operating, or managing sports betting in this state; to9
provide for rules and regulations promulgated by the corporation; to provide for a privilege10
tax; to require certain reports; to regulate wagers and provide requirements for bettors; to11
provide for bettors to restrict themselves from placing certain wagers; to provide certain12
resources for individuals with problem gambling or a betting or gambling disorder; to13
provide for 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 sports betting licensee from the definition of "bet"; to provide for the18 23 LC 36 5434
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exemption of persons licensed for online sports betting from regulations and restrictions
19
regarding gambling information; to amend Title 48 of the Official Code of Georgia20
Annotated, relating to revenue and taxation, so as to exempt wagers placed as part of sports21
betting; to provide for related matters; to provide for an effective date; to repeal conflicting22
laws; and for other purposes.23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:24
PART I25
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
"(13)  'Lottery,' 'lotteries,' 'lottery game,' or 'lottery games' means any game of chance30
approved by the board and operated pursuant to this chapter, including, but not limited31
to, instant tickets, on-line
 online games, online sports betting, and games using32
mechanical or electronic devices but excluding pari-mutuel betting and casino gambling33
as defined in this Code section."34
"(20)  'Pari-mutuel betting' means a method or system of wagering on actual races35
involving horses or dogs at tracks which involves the distribution of winnings by pools.36
Such term shall not mean lottery games which may be predicated on a horse racing or dog37
racing scheme that does not involve actual track events.  Such term shall not mean the38
lottery game of sports betting or traditional lottery games which may involve the39
distribution of winnings by pools."40
"(23.1)  'Sports betting' shall have the same meaning as provided in Code Section41
50-27-122."42 23 LC 36 5434
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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; and
49
(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 2024, 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 2024 and for67
each fiscal year thereafter, if on the last day of the preceding fiscal year the total reserve68 23 LC 36 5434
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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 II82
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 Lottery Game of Sports89
Betting Act.'90 23 LC 36 5434
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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, which purposes and provisions include the operation95
and regulation of a lottery or lotteries and which purposes and provisions may encompass96
sports betting as a game or games offered by the Georgia Lottery Corporation;97
(2)  Sports betting shall be overseen and regulated, and may also be offered, by the98
Georgia Lottery Corporation in a manner that provides continuing entertainment to the99
public, maximizes revenues, and ensures that sports betting is operated in this state with100
integrity and dignity and free of political influence;101
(3)  The corporation shall be accountable to the General Assembly and to the public for102
the management and oversight of sports betting in this state through a system of audits103
and reports;104
(4)  The ability to offer sports betting in this state under a license issued in accordance105
with this article constitutes a taxable privilege and not a right;106
(5)  Net proceeds of sports betting conducted pursuant to this article shall be used for the107
purposes authorized by Article I, Section II, Paragraph VIII of the Constitution; and108
(6)  In accordance with Code Section 50-27-2, sports betting shall be conducted in a109
manner so as to safeguard the fiscal soundness of the state, to enhance public welfare, and110
to support the funding authorized by Article I, Section II, Paragraph VIII of the111
Constitution.112
50-27-122.113
As used in this chapter, the term:114
(1)  'Adjusted gross income' means the total of all moneys paid to a licensee as bets minus115
federal excise taxes; minus the total amount paid out to winning bettors, including the116 23 LC 36 5434
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cash value of merchandise; and minus the monetary value of promotional play wagered117
by authorized participants as an incentive to place wagers on sporting events or as a result118
of their having placed sports bets.119
(2)  'Applicant' means any person that applies for a license under this article.120
(3)  'Bettor' means an individual who is:121
(A)  Physically present in this state when placing a wager with a licensee;122
(B)  Twenty-one years of age or older; and123
(C)  Not prohibited from placing a wager or bet under Code Section 50-27-162.124
(4)  'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves125
to account for losses suffered by a licensee and owed to bettors.126
(5)  'Cheating' means improving the chances of winning or altering the outcome through127
deception, interference, or manipulation of a sporting event or of any equipment,128
including software, pertaining to or used in relation to the equipment used for or in129
connection with the sporting event on which wagers are placed or invited.  Such term130
shall include match fixing and attempts and conspiracy to cheat.131
(6)  'Collegiate sporting event' means a sporting or athletic event involving a sports or132
athletic team of a public or private institution of higher education.133
(7)  'Esports event' means an organized video game competition between players who134
play individually or as teams.135
(8)  'Fantasy or simulated contest' means a game or event in which one or more players136
compete based on winning outcomes that reflect the relative knowledge and skill of the137
players and are determined predominately by accumulated statistical results of the138
performance of individuals, including, but not limited to, athletes in sporting events.139
(9)  'Fixed-odds betting' means bets made at predetermined odds or on the spread where140
the return to the bettor is unaffected by any later change in odds or the spread.141
(10)  'Futures bet' means a wager made on the occurrence of an event in the future142
relating to a sporting event.143 23 LC 36 5434
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(11)  'Institutional investor' means:144
(A)  A retirement fund administered by a public agency for the exclusive benefit of145
federal, state, or local public employees;146
(B)  An investment company registered under the Investment Company Act of 1940;147
(C)  A chartered or licensed life insurance company or property and casualty insurance148
company;149
(D)  A banking and other chartered or licensed lending institution;150
(E)  An investment advisor registered under the Investment Advisers Act of 1940; or151
(F) A pension investment board.152
(12)  'License' means any of the licenses issued by the corporation under this article.153
(13)  'Licensee' means a person that holds a license issued by the corporation under this154
article.155
(14)  'Master sports betting licensee' means the Georgia Lottery Corporation.156
(15)  'Material nonpublic information' means information that has not been disseminated157
publicly concerning an athlete, contestant, prospective contestant, or athletic team,158
including, without limitation, confidential information related to medical conditions or159
treatment, physical or mental health or conditioning, physical therapy or recovery,160
discipline, sanctions, academic status, education records, eligibility, playbooks, signals,161
schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or162
recordings of practices or other athletic activities.163
(16)  'Minor' means an individual who is less than 21 years of age.164
(17)  'Money line' means the fixed odds in relation to a dollar amount that a team or165
person participating in a sporting event will win outright regardless of the spread.166
(18)  'Official event data' means statistics, results, outcomes, and other data related to a167
sporting event obtained pursuant to an agreement with the relevant sporting events168
operator whose corporate headquarters is based in the United States or an entity expressly169 23 LC 36 5434
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authorized by such sporting events operator to provide such information to licensees for170
purposes of determining the outcome of tier 2 sports wagers on such sporting event.171
(19)  'Official league data' means statistics, results, outcomes, and other data related to172
a sporting event obtained pursuant to an agreement with the relevant professional sports173
governing body whose corporate headquarters is based in the United States or an entity174
expressly authorized by such professional sports governing body to provide such175
information to licensees for purposes of determining the outcome of tier 2 sports wagers.176
(20)  'Online sports betting' means a wager on a sporting event is placed via the internet177
through any electronic device other than a Type 2 sports betting machine and accepted178
through an online sports betting platform that is operated by a Type 1 sports betting179
licensee or such licensee's online sports betting services provider.180
(21)  'Online sports betting platform' means the combination of hardware, software, and181
data networks used to manage, administer, or control online sports betting and any182
associated wagers accessible by any electronic means.183
(22)  'Online sports betting services provider' means a person that contracts with the184
master sports betting licensee or a Type 1 sports betting licensee under Code Section185
50-27-133 to operate online sports betting on behalf of such licensee and that is licensed186
by the corporation.187
(23)  'Over/under bet' means a single wager that predicts whether the combined score of188
the two persons or teams engaged in a sporting event will be lower or higher than a189
predetermined number.190
(24)  'Parlay bet' means a single wager that incorporates two or more individual bets for191
purposes of earning a higher payout if each bet incorporated within the wager wins.192
(25)  'Principal owner' means a person that owns an interest of 10 percent or more of the193
entity.194 23 LC 36 5434
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(26)  'Professional sporting event' means an athletic or sporting event involving at least195
two competitors who have the opportunity to receive compensation for participating in196
such event.197
(27)  'Professional sports governing body' means the organization, league, or association198
that oversees a sport and prescribes final rules and enforces codes of conduct with respect199
to such sport and participants therein.200
(28)  'Professional sports team' means a major league professional team:201
(A)  Based in this state;202
(B)  That plays baseball, football, men's basketball, soccer, or women's basketball; and203
(C)  Whose regular season games have had the highest attendance for its respective204
sport during the past five years.205
(29)  'Proposition bet' means a wager on a single specific action, statistic, occurrence, or206
nonoccurrence to be determined during a sporting event and includes any such action,207
statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of208
the sporting event to which it relates.  Proposition bets shall be offered only by a master209
sports betting licensee, an online sports betting services provider that contracts with the210
master sports betting licensee, or Type 1 licensees on online sports betting platforms.211
(30)  'Relative' means a spouse, father, mother, son, daughter, grandfather, grandmother,212
brother, sister, uncle, aunt, cousin, nephew, niece, father-in-law, mother-in-law,213
son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,214
stepson, stepdaughter, stepbrother, stepsister, half-brother, or half-sister.215
(31)  'Retail sports betting' means sports betting that is operated by a Type 2 sports216
betting licensee in which a wager on a sporting event is placed by the bettor using217
self-service or clerk operated terminals, while on the premises of a Type 2 sports betting218
retail licensee.219
(32)  'Sporting event' means any:220 23 LC 36 5434
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(A)  Professional sporting or professional athletic event, including motor sports221
sanctioned by a national or international organization or association;222
(B)  Collegiate sporting event;223
(C)  Olympic sporting or athletic event;224
(D)  Sporting or athletic event sanctioned by a national or international organization or225
association;226
(E)  Sporting or athletic event conducted or organized by a sporting events operator;227
(F)  Esports event; or228
(G)  Other event authorized by the corporation.229
Such term shall not include a nonprofessional or non-Olympic sporting or athletic event230
if the majority of the participants are under the age of 18.231
(33)  'Sporting events operator' means a person that conducts or organizes a sporting232
event for athletes or other participants that is not held or sanctioned as an official sporting233
event of a professional sports governing body.234
(34)  'Sports betting' means placing one or more wagers for a sporting event.235
(35)  'Sports betting equipment' means any of the following that is directly used in236
connection with the operation of sports betting:237
(A)  Any mechanical, electronic, or other device, mechanism, or equipment, including238
a self-service or clerk operated sports betting terminal;239
(B)  Any software, application, components, or other goods; or240
(C)  Anything to be installed or used on a patron's personal electronic device.241
(36)(A)  'Sports betting supplier' means a person that provides sports betting equipment242
necessary for the creation of sports betting markets and the determination of bet243
outcomes, directly to any sporting events operator or applicant involved in the244
acceptance of bets, including any of the following:245
(i)  Providers of data feeds and odds services;246
(ii)  Providers of Type 2 sports betting machines;247 23 LC 36 5434
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(iii)  Internet platform providers;248
(iv)  Risk management providers:249
(v)  Integrity monitoring providers; and250
(vi)  Other providers of sports betting supplier services as determined by the251
corporation.252
(B)  Such term shall not include a professional sports governing body that:253
(i)  Provides official league data concerning its own sporting event to a sports betting254
licensee solely on that basis; or255
(ii)  Provides raw statistical match data to one or more designated and licensed256
suppliers of data feeds and odds services solely on that basis.257
(37)  'Spread' means the predicted scoring differential between two persons or teams258
engaged in a sporting event.259
(38)  'Supervisory employee' means a principal owner or employee having the authority260
to act on behalf of a licensee or whose judgment is relied upon to manage and advance261
the business operations of a licensee.262
(39)  'Tier 1 sports wager' means a sports wager that is determined solely by the final263
score or final outcome of the sporting event and is placed before the sporting event has264
begun.265
(40)  'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.266
(41)  'Type 1 eligible entity' means any of the following:267
(A)  Any professional sports team, or its designee;268
(B)  A professional sports governing body that holds one or more sanctioned annual269
golf tournaments on a national tour of professional golf in this state, and has held one270
or more of the same or different sanctioned annual golf tournaments on a national tour271
of professional golf in this state for at least 30 years;272
(C)  The owner of a facility in this state that has held an annual invitational golf273
tournament for professional and amateur golfers for at least 30 years;274 23 LC 36 5434
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(D)  The owner of a facility located in this state that hosts automobile races on a275
national association for stock car racing national tour or a wholly owned for-profit276
subsidiary of the owner of such a facility, if the owner is a nonprofit corporation or277
nonprofit organization; and278
(E)  The Georgia Lottery Corporation.279
(42)  'Type 1 sports betting licensee' means the master sports betting licensee, an online280
sports betting services provider that contracts with the master sports betting licensee, or281
a Type 1 eligible entity licensed or authorized by the corporation to directly or indirectly282
offer online sports betting.283
(43)  'Type 2 eligible retail entity' means:284
(A)  The holder of a retail consumption dealer license or a retail dealer license issued285
under Title 3 and who actively operates a place of business located in this state that286
requires such retail consumption dealer license or retail dealer license; or287
(B)  The holder of a Class B machine location license issued by the corporation under288
Chapter 27 of this title and who actively operates a place of business located in this289
state that requires such Class B machine location license.290
(44)  'Type 2 sports betting distributor licensee' means a person licensed or authorized by291
the corporation to offer retail sports betting on behalf of the corporation.292
(45)  'Type 2 sports betting machine' means a self-service or clerk operated electronic293
machine approved by the corporation, including, but not limited to, Class B machines294
licensed by the corporation under Article 3 of this chapter adapted to also function as a295
self-service terminal.296
(46)  'Type 2 sports betting platform licensee' means a sports betting platform operator297
licensed or authorized by the corporation to offer retail sports betting on behalf of the298
corporation at a Type 2 sports betting retail licensee's place of business through Type 2299
sports betting machines owned by a Type 2 sports betting distributor licensee.300 23 LC 36 5434
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(47)  'Type 2 sports betting retail licensee' means a Type 2 eligible retail entity licensed301
or authorized by the corporation to offer retail sports betting on behalf of the corporation.302
(48)  'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown303
outcome of one or more sporting events.  Such term shall be limited to fixed-odds betting,304
futures bets, a tier 1 or tier 2 sports wager, a money line bet, an over/under bet, a parlay305
bet, a proposition bet, or a bet on the spread.  Such term shall not include a pari-mutuel306
bet or wager or an entry fee paid to participate in a fantasy or simulated contest.307
50-27-123.308
(a)  The corporation shall have all powers and duties necessary to carry out the provisions309
of this article and to exercise the control of the lottery game of sports betting in this state310
as authorized by this article.  Such powers and duties shall include, but shall not be limited311
to, the following:312
(1)  To have jurisdiction, supervision, and regulatory authority over sports betting,313
including, but not limited to:314
(A)  The regulation, licensure, and offering of sports betting on mobile applications315
available state wide via the internet and through a limited number of licenses to316
awarded to Type 1 sports betting licensees; and317
(B)  The regulation, licensure, and offering of sports betting on machines installed in318
specified eligible locations open to the public, placed in such locations through a319
limited number of distribution licenses awarded to Type 2 sports betting distributor320
licensees, Type 2 sports betting platform licensees, and Type 2 sports betting retail321
licensees;322
(2)  To have jurisdiction and supervision of all persons conducting, participating in, or323
attending any facility with sports betting;324
(3)  To appoint and employ such persons as the corporation deems essential to perform325
its duties under this article and to ensure that such sports betting is conducted with order326 23 LC 36 5434
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and the highest integrity.  Such employees shall possess such authority and perform such327
duties as the corporation shall prescribe or delegate to them.  Such employees shall be328
compensated as provided by the corporation;329
(4)  To enter upon, investigate, and have free access to all places of business of any330
licensee under this article and to compel the production of any books, ledgers, documents,331
records, memoranda, or other information of any licensee to ensure such licensee's332
compliance with the rules and regulations promulgated by the corporation pursuant to this333
article.  Such rules and regulations shall be exempt from the requirements of Chapter 13334
of this title, the 'Georgia Administrative Procedure Act';335
(5)  To promulgate any rules and regulations as the corporation deems necessary and336
proper to administer the provisions of this article; provided, however, that the initial rules337
and regulations governing sports betting shall be promulgated and adopted by the338
corporation within 90 days of the effective date of this article after an opportunity has339
been provided for public comment.  The promulgation and adoption of such initial rules340
and regulations shall not be subject to Chapter 13 of this title, the 'Georgia Administrative341
Procedure Act';342
(6)  To issue subpoenas for the attendance of witnesses before the corporation, administer343
oaths, and compel production of records or other documents and testimony of witnesses344
whenever, in the judgment of the corporation, it is necessary to do so for the effectual345
discharge of the duties of the corporation under this article;346
(7)  To compel any person licensed by the corporation to file with the corporation such347
data, documents, and information as shall appear to the corporation to be necessary for348
the performance of the duties of the corporation under this article, including, but not349
limited to, financial statements and information relative to stockholders and all others350
with a pecuniary interest in such person;351
(8)  To prescribe the manner in which books and records of persons licensed or permitted352
by the corporation under this article shall be kept;353 23 LC 36 5434
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(9)  To enter into arrangements with any foreign or domestic government or354
governmental agency for the purposes of exchanging information or performing any other355
act to better ensure the proper conduct of betting under this article;356
(10)  To order such audits, in addition to those otherwise required by this article, as the357
corporation deems necessary and desirable;358
(11)  Upon the receipt of a complaint of an alleged criminal violation of this article, to359
immediately report such complaint to the appropriate law enforcement agency with360
jurisdiction to investigate criminal activity;361
(12)  To provide for the reporting of the applicable amount of state and federal income362
tax of persons claiming a prize or payoff for a winning wager under this article;363
(13)  To establish and administer a program for providing assistance to problem364
gamblers, including, but not limited to, requiring the posting of signs, notifications, or365
other relevant responsible gambling information in a clear and conspicuous manner on366
retail sports betting premises and online sports betting platforms, including a national367
toll-free number approved by the corporation that directs callers to an organization that368
provides assistance to problem gamblers;369
(14)  To maintain a confidential registry of persons and categories of persons who are370
ineligible to place a wager in this state and provide the registry to each licensee in this371
state.  The corporation shall provide each updated registry to licensees as soon as372
practicable.  Each licensee shall maintain the confidentiality of the registry provided by373
the corporation;374
(15)  To eject or exclude from the sports betting facility or any part thereof any375
individual, whether licensed or not, whose conduct or reputation is such that his or her376
presence may, in the opinion of the corporation or the designated employees of the377
corporation, reflect adversely on the honesty and integrity of the sports betting or378
interfere with the orderly conduct of the lottery game of sports betting;379 23 LC 36 5434
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(16)  To keep a true and full record of all proceedings of the corporation under this article380
and preserve at the corporation's general office all books, documents, and papers of the381
corporation; and382
(17)  To adopt rules and regulations specific to the manner in which a licensee may383
advertise its business operations as authorized by this article.384
(b)  The corporation shall not have the power to prescribe a licensee's maximum or385
minimum payout or hold percentage.386
(c)  The corporation shall not have the power to issue or award and shall not issue or award387
any licenses provided for in this article prior to September 1, 2023.388
50-27-124.389
(a)  The corporation shall prescribe by rules and regulations:390
(1)  The reserves that must be kept by licensees to comply with subparagraph (c)(7)(A)391
of Code Section 50-27-130 to pay off bettors;392
(2)  Any insurance requirements for a licensee;393
(3)  Minimum requirements by which each licensee shall exercise effective control over394
its internal fiscal affairs, including, without limitation, requirements for:395
(A)  Safeguarding assets and revenues, including evidence of indebtedness;396
(B)  Maintaining reliable records relating to accounts, transactions, profits and losses,397
operations, and events; and398
(C)  Global risk management;399
(4)  Requirements for internal and independent audits of licensees;400
(5)  The manner in which periodic financial reports shall be submitted to the corporation401
from each licensee, including the financial information to be included in the reports;402
(6)  The type of information deemed to be confidential financial or proprietary403
information that is not subject to any reporting requirements under this article;404 23 LC 36 5434
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(7)  Policies, procedures, and processes designed to mitigate the risk of cheating and405
money laundering; and406
(8)  Any post-employment restrictions necessary to maintain the integrity of sports407
betting in this state.408
Part 2409
50-27-130.410
(a)  Any person offering, operating, or managing sports betting, including retail sports411
betting, in this state shall be licensed by the corporation.412
(b)  The corporation shall issue licenses to qualified applicants able to meet the duties of413
a license holder under this article and that the corporation determines will best satisfy the414
following criteria:415
(1)  Expertise in the business of online sports betting;416
(2)  Integrity, sustainability, and safety of the online sports betting platform;417
(3)  Past relevant experience of the applicant;418
(4)  Advertising and promotional plans to maximize revenue;419
(5)  Demonstrated commitment to and plans for the promotion of responsible gaming;420
and421
(6)  Capacity to rapidly and efficiently bring bettors onto the applicant's platform.422
(c)  An applicant for a license or for the renewal of a license shall submit an application on423
a form in such manner and in accordance with such requirements as may be prescribed by424
rules and regulations of the corporation.  Such rules and regulations shall require, at a425
minimum, that the application include the following:426
(1)  If the applicant is an entity, identification of the applicant's principal owners, board427
of directors, officers, and supervisory employees;428 23 LC 36 5434
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(2)  Evidence of the applicant's certificate of fitness for sports betting affiliation.  If the429
applicant is an entity, such evidence shall be provided for every individual who is a430
principal owner;431
(3)  Information, documentation, and assurances as may be required by the corporation432
to establish by clear and convincing evidence the applicant's good character, honesty, and433
integrity, including, but not limited to, information pertaining to family, habits, character,434
reputation, criminal and arrest records, business activities, financial affairs, and business,435
professional, and personal associates, covering at least the ten-year period immediately436
preceding the filing of the application;437
(4)  Notice and a description of civil judgments obtained against the applicant pertaining438
to antitrust or security regulation laws of the federal government, this state, or any other439
state, jurisdiction, province, or country;440
(5)  To the extent available, letters of reference or the equivalent from law enforcement441
agencies having jurisdiction of the applicant's place of residence and principal place of442
business.  Each such letter of reference shall indicate that the law enforcement agency443
does not have any pertinent information concerning the applicant or, if such law444
enforcement agency does have information pertaining to the applicant, shall provide such445
information, to the extent permitted by law;446
(6)  If the applicant has conducted sports betting operations in another jurisdiction, a447
letter of reference from the regulatory body that governs sports betting that specifies the448
standing of the applicant with such regulatory body; provided, however, that, if no such449
letter is received within 60 days of the request therefor, the applicant may submit a450
statement under oath that the applicant is or was, during the period such activities were451
conducted, in good standing with the regulatory body;452
(7)  Information, documentation, and assurances concerning financial background and453
resources as may be required to establish by clear and convincing evidence the financial454
stability, integrity, and responsibility of the applicant, including, but not limited to, bank455 23 LC 36 5434
H. B. 380
- 19 -
references, business and personal income and disbursement schedules, tax returns and456
other reports filed with governmental agencies, and business and personal accounting and457
check records and ledgers.  Each applicant shall, in writing, authorize the examination of458
all bank accounts and records as may be deemed necessary by the corporation.  The459
corporation may consider any relevant evidence of financial stability.  The applicant shall460
be presumed to be financially stable if the applicant establishes by clear and convincing461
evidence the ability to:462
(A)  Assure the financial integrity of sports betting operations by the maintenance of463
a reserve of not less than $500,000.00 or the amount required to cover the outstanding464
liabilities for wagers accepted by the licensee, whichever is greater.  Outstanding465
liabilities for wagers shall mean the sum of the amount paid by patrons for wagers that466
have not yet been determined and the amount owed but unpaid by licensees to patrons467
for wagers whose results have been determined.  The reserve may take the form of a468
bond, an irrevocable letter of credit, payment processor reserves and receivables, cash469
or cash equivalents segregated from operational funds, guaranty letter, or a combination470
thereof.  Such reserve shall be adequate to pay winning wagers to bettors when due.471
An applicant is presumed to have met this standard if the applicant maintains, on a daily472
basis, a minimum reserve in an amount which is at least equal to the average daily473
minimum reserve, calculated on a monthly basis, for the corresponding month in the474
previous year;475
(B)  Meet ongoing operating expenses which are essential to the maintenance of476
continuous and stable sports betting operations; and477
(C)  Pay, as and when due, all state and federal taxes;478
(8)  Information, documentation, and assurances as may be required to establish by clear479
and convincing evidence that the applicant has sufficient business ability and sports480
betting experience to establish the likelihood of the creation and maintenance of481
successful, efficient sports betting operations in this state;482 23 LC 36 5434
H. B. 380
- 20 -
(9)  Information, as required by rules and regulations of the corporation, regarding the483
financial standing of the applicant, including, without limitation, each person or entity484
that has provided loans or financing to the applicant;485
(10)  A nonrefundable application fee and licensing fee as follows:486
(A)  Applicants for a Type 1 sports betting license shall pay a nonrefundable487
application fee in the amount of $100,000.00 and an annual licensing fee in the amount488
of $1 million; provided, however, that, for those licenses referred to in paragraph (3)489
of subsection (b) of Code Section 50-27-133, this fee shall be paid by the online sports490
betting services provider and not by the corporation;491
(B)  Applicants for a Type 2 sports betting distributor license shall pay a nonrefundable492
application fee in the amount of $10,000.00 and an annual licensing fee of $100,000.00;493
(C)  Applicants for a Type 2 sports betting platform license shall pay a nonrefundable494
application fee in the amount of $10,000.00 and an annual licensing fee of $100,000.00;495
(D)  Applicants for a Type 2 sports betting retail license shall pay a nonrefundable496
application fee in the amount of $500.00 and an annual licensing fee of $500.00;497
(E)  Applicants for an online sports betting services provider license shall pay a498
nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee499
of $100,000.00; provided, however, that an online sports betting services provider that500
applies for and obtains one of the licenses referred to in paragraph (3) of subsection (b)501
of Code Section 50-27-133 shall only be required to pay the nonrefundable application502
fee and annual licensing fee applicable to the applicant's Type 1 sports betting license;503
and504
(F)  Applicants for a sports betting supplier license shall pay a nonrefundable505
application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;506
and507
(11)  Any additional information, documents, or assurances required by rules and508
regulations of the corporation.509 23 LC 36 5434
H. B. 380
- 21 -
(d)  The corporation shall review and approve or deny an application for a license not more510
than 90 days after receipt of an application.511
50-27-131.512
(a)  A licensee may renew its license by submitting an application on a form in such513
manner and in accordance with such requirements as may be prescribed by rules and514
regulations of the corporation.  A licensee shall submit the nonrefundable annual licensing515
and application fees prescribed under paragraph (10) of subsection (c) of Code Section516
50-27-130 with its application for license renewal.517
(b)  For each application for licensure or renewal of a license approved under this Code518
section, the amount of the application fee shall be credited toward the licensee's annual519
licensing fee and the licensee shall remit the balance of the annual fee to the corporation520
upon approval of a license.521
(c)  Each licensee shall have a continuing duty to promptly inform the corporation of any522
change in status relating to any information that may disqualify the licensee from holding523
a license under Code Section 50-27-132.524
(d)  A professional sports governing body may enter into commercial agreements with525
licensees or other entities that provide for such professional sports governing body to share526
in the amounts wagered or revenue derived from wagers on sporting events of such527
professional sports governing body.  A professional sports governing body shall not be528
required to obtain any approval or other form of authorization from the corporation to enter529
into such commercial agreements or to lawfully accept such amounts or revenues.  The530
corporation shall not prescribe any terms or conditions that are required to be included into531
such commercial agreements.532
(e)  A person that holds a license or permit to engage in sports betting issued by another533
jurisdiction may submit a request to the corporation for a temporary license for such person534
to immediately commence engagement in this state in sports betting. Such request shall535 23 LC 36 5434
H. B. 380
- 22 -
include the licensing fee required under paragraph (10) of subsection (c) of Code Section536
50-27-130.537
(f)  Upon receiving a request for a temporary license, the chief executive officer may538
review the request at his or her discretion. If the chief executive officer reviews the request539
and determines that the person requesting the temporary license holds a license or permit540
issued by another jurisdiction to engage in sports betting and has paid the required541
licensing fee, the chief executive officer may authorize such person to engage  in sports542
betting pursuant to this article under a temporary license for up to one year or until a final543
determination on such person's application is made, whichever is later.544
(g)  All licenses issued under this article shall be valid for a term of five years, unless545
suspended or revoked as provided under this article.546
(h)  The corporation may adopt rules and regulations prescribing the manner in which a547
license may be transferred and a fee for a license transfer.548
(i)  A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully549
operating in this state and the licensee shall be the beneficiary of any interest accrued550
thereon.551
50-27-132.552
(a)  The following persons shall not be eligible to apply for or obtain a license under this553
article:554
(1)  A member of the board of directors or employee of the corporation or an employee555
of a corporation vendor; provided, however, that a corporation vendor as an entity may556
be eligible to apply for or obtain a license;557
(2)  An employee of a professional sports team on which the applicant offers sports558
betting;559
(3)  A coach of or player for a collegiate, professional, or Olympic sports team or sport560
or an entity that has an affiliation or interest in such a sports team or sport;561 23 LC 36 5434
H. B. 380
- 23 -
(4)  An individual who is a member or employee of any professional sports governing562
body or sporting events operator;563
(5)  An individual or entity with an owner, officer, or director who has been convicted of564
a crime of moral turpitude or similar degree as specified in rules and regulations565
promulgated by the corporation pursuant to this article;566
(6)  A person having the ability to directly affect the outcome of a sporting event upon567
which the applicant offers sports betting;568
(7)  A trustee or regent of a governing board of a public or private institution of higher569
education;570
(8)  An individual prohibited by the rules or regulations of a professional sports571
governing body or sporting events operator of a collegiate sports, team, league, or572
association from participating in sports betting;573
(9)  A student or an employee of a public or private institution of higher education who574
has access to material nonpublic information concerning a student athlete or a sports575
team; and576
(10)  Any other category of persons, established by rules and regulations of the577
corporation, that, if licensed, would negatively affect the integrity of sports betting in this578
state.579
(b)  An individual listed in paragraphs (2) through (10) of subsection (a) of this Code580
section may hold an ownership interest in an applicant or licensee without disqualifying581
the applicant or licensee from obtaining or holding a license; provided, however, that such582
an ownership interest of 25 percent or more shall require approval from the corporation.583
In determining whether such an ownership interest shall be the basis of disqualification, the584
corporation shall consider whether such interest would negatively affect the integrity of585
sports betting in this state and any other factors the corporation shall deem relevant.586 23 LC 36 5434
H. B. 380
- 24 -
50-27-133.587
(a)  A Type 1 sports betting license authorizes a Type 1 eligible entity, or its designated588
online sports betting services provider, to offer online sports betting.  If a Type 1 eligible589
entity designates an online sports betting services provider, the online sports betting590
services provider is considered the applicant for a Type 1 sports betting license and is591
considered the Type 1 sports betting licensee for all aspects of the regulatory control of the592
corporation and the operations under the Type 1 sports betting license.  The corporation593
shall establish a procedure for a Type 1 eligible entity to designate an online sports betting594
provider.595
(b)  The corporation shall issue not more than 16 Type 1 sports betting licenses to Type 1596
eligible entities or their designated online sports betting services providers in accordance597
with the following:598
(1)  Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities599
defined in subparagraph (A) of paragraph (41) of Code Section 50-27-122 or their600
designated online sports betting services providers; provided, however, that more than601
one license may be issued to an owner of multiple professional sports teams;602
(2)  One Type 1 sports betting license shall be reserved for each of the Type 1 eligible603
entities defined in subparagraphs (B) through (E) of paragraph (41) of Code Section604
50-27-122 or their designated online sports betting services providers; and605
(3)  The corporation shall award contracts to manage the remaining seven Type 1 sports606
betting licenses to separate online sports betting services providers via a public607
procurement process;608
provided, however, that a master sports betting license shall authorize the corporation609
through a designated online sports betting services provider to offer online sports betting.610
(c)  A Type 1 eligible entity may contract with no more than one online sports betting611
services provider to operate online sports betting on behalf of the Type 1 eligible entity.612 23 LC 36 5434
H. B. 380
- 25 -
(d)  A Type 1 eligible entity shall provide written notice to the corporation of its intention,613
or its designated sports betting services provider's intention, to apply for a Type 1 sports614
betting license within 60 days of the effective date of this article.  The failure of a Type 1615
eligible entity to provide such written notice shall result in the permanent disqualification616
and prohibition of such Type 1 eligible entity or its designated sports betting services617
provider from obtaining a Type 1 sports betting license.618
(e)  A Type 1 sports betting licensee shall not offer online sports betting until the619
corporation has issued a license to at least one online sports betting services provider that620
has been awarded a sports betting license via the public procurement process as determined621
by the corporation.622
(f)  All applicants for the 16 Type 1 sports betting licenses under subsection (b) of this623
Code section that have submitted an application within 30 days of the date in which the624
corporation began to accept applications for Type 1 sports betting licenses shall be given625
an equal opportunity to first commence offering, conducting, or operating online sports626
betting in this state on the same day, and in any event not later than January 31, 2024.627
50-27-134.628
(a)  A Type 2 sports betting distributor license authorizes a Type 2 eligible retail entity to629
offer retail sports betting on behalf of the corporation through a platform provided by one630
or more Type 2 sports betting platform licensees; provided, however, that retail sports631
betting shall be limited to fixed-odds betting, money line bets, over/under bets, parlay bets,632
and bets on the spread.633
(b)  The corporation shall license not less than five nor more than seven Type 2 eligible634
retail entities as Type 2 sports betting distributor licensees.  The Type 2 sports betting635
distributor licenses shall be issued to the Type 2 eligible retail entities upon meeting the636
qualification and suitability criteria applicable to such Type 2 eligible retail entities637
established under rules and regulations of the corporation.638 23 LC 36 5434
H. B. 380
- 26 -
(c)  A Type 2 sports betting distributor licensee shall maintain at least one operational place639
of business in this state.640
(d)  Each Type 2 sports betting distributor licensee shall contract with the corporation to641
operate retail sports betting on behalf of the corporation in exchange for 80 percent of the642
state's proceeds from retail sports betting generated by self-service or clerk operated643
terminals owned or operated by such Type 2 sports betting distributor.644
(e)  A Type 2 sports betting distributor licensee may offer sports betting using self-service645
or clerk operated terminals approved by the corporation.646
(f)  Except as provided for in subsection (i) of this Code section, a Type 2 sports betting647
distributor licensee shall not install or offer more than two sports betting terminals at the648
Type 2 sports betting retail licensee's place of business; however, Class B machines649
licensed by corporation under Article 3 of this chapter adapted to also function as650
self-service terminals shall not be subject to such limitation.651
(g)  A Type 2 sports betting distributor licensee shall contract with one or more Type 2652
sports betting platform licensees to offer retail sports betting.653
(h)  There shall be no limit on the number of Type 2 sports betting platform licenses or654
Type 2 sports betting retail licenses.655
(i)  The corporation shall adopt rules and regulations that:656
(1)  Limit the combined revenue from sports betting and Class B machines licensed by657
the corporation under Article 3 of this chapter to one-half of the total revenue for the658
retail location of any Type 2 sports betting retail licensee; provided, however, that such659
limitation shall not apply to Class B machines described in paragraph (3) of this660
subsection;661
(2)  Prescribe the ratios by which revenue from retail sports betting shall be divided662
among Type 2 distributor licensees, Type 2 platform licensees, and Type 2 retail663
licensees; and664
(3)  Are reasonable and necessary to effectuate the provisions of this article.665 23 LC 36 5434
H. B. 380
- 27 -
50-27-135.666
(a)  An online sports betting services provider shall offer online sports betting only in667
accordance with the provisions of this article and the rules and regulations adopted by the668
corporation under this article.669
(b)  An online sports betting services provider shall obtain a license under this article670
before offering online sports betting pursuant to a contract with a Type 1 sports betting671
licensee or master sports betting licensee.  An online sports betting services provider672
license shall entitle the holder to contract with no more than one Type 1 sports betting673
licensee.674
(c)  If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a675
member of a league, association, or organization that prevents the holder from being676
subject to the regulatory control of the corporation or from otherwise operating under the677
license, such a Type 1 eligible entity may contractually appoint an online sports betting678
services provider for all aspects of corporation oversight and operations under the Type 1679
sports betting license.680
(d)  Institutional investors shall be exempt from any and all qualification and disclosure681
requirements under this article or required under the rules and regulations promulgated by682
the corporation pursuant to this article.  Such exemption shall extend to the owners,683
directors, and officers of such institutional investors.684
Part 3685
50-27-150.686
(a)  Notwithstanding any other law to the contrary, there shall be imposed an annual687
privilege tax of 15 percent of the adjusted gross income derived from online sports betting688
in accordance with this Code section.689 23 LC 36 5434
H. B. 380
- 28 -
(b)  The privilege tax described in subsection (a) of this Code section shall be paid by the690
online sports betting services provider.691
(c)  The privilege tax imposed under this Code section shall be paid monthly by the online692
sports betting services provider based on its monthly adjusted gross income for the693
immediately preceding calendar month.  The privilege tax shall be paid to the corporation694
in accordance with rules and regulations promulgated by the corporation.  If the online695
sports betting services provider's adjusted gross income for a month is a negative number,696
such online sports betting services provider may carry over such negative amount to697
subsequent months.698
(d)  All moneys from privilege taxes and fees collected under this Code section shall be699
distributed and used as provided under Article I, Section II, Paragraph VIII of the700
Constitution.701
(e)  With the exemption of licensing fees imposed by paragraph (10) of subsection (c) of702
Code Section 50-27-130, this privilege tax is in lieu of all other state and local taxes and703
fees imposed on the operation of sports betting or on the proceeds from the operation of704
sports betting in this state.705
50-27-151.706
(a)  Each licensee shall report to the corporation, no later than January 15 of each year:707
(1)  The total amount of wagers received from bettors for the immediately preceding708
calendar year;709
(2)  The adjusted gross income of the licensee for the immediately preceding calendar710
year; and711
(3)  Any additional information required by rules and regulations of the corporation712
deemed in the public interest or necessary to maintain the integrity of sports betting in713
this state.714
(b)  A licensee shall promptly report to the corporation any information relating to:715 23 LC 36 5434
H. B. 380
- 29 -
(1)  The name of any newly elected officer or director of the board of the licensed entity;716
and717
(2)  The acquisition by any person of 10 percent or more of any class of corporate stock.718
(c)  With respect to information reported under subsection (b) of this Code section, a719
licensee shall include with such report a statement of any conflict of interest that may exist720
as a result of such election or acquisition.721
(d)  Upon receiving a report under this Code section or subsection (b) of Code722
Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section723
50-27-193 to determine whether the licensee remains in compliance with this article.724
Part 4725
50-27-160.726
(a)  No person shall knowingly:727
(1)  Allow a minor to place a wager;728
(2)  Offer, accept, or extend credit to a bettor in the form of a marker; provided, however,729
that promotions and promotional credits shall be permitted to be offered and extended to730
bettors;731
(3)  Target minors in advertising or promotions for sports betting;732
(4)  Offer or accept a wager on any event, outcome, or occurrence other than a sporting733
event, including, without limitation, a high school sporting event offered, sponsored, or734
played in connection with a public or private institution that offers education at the735
secondary level; or736
(5)  Accept a wager from an individual who is prohibited from placing a wager or bet737
under Code Section 50-27-162.738
(b)  A person that knowingly violates this Code section:739
(1)  For a first offense, shall be guilty of a misdemeanor; and740 23 LC 36 5434
H. B. 380
- 30 -
(2)  For a second or subsequent offense, shall be guilty of a misdemeanor of a high and741
aggravated nature.742
50-27-161.743
Except for those individuals ineligible to place bets under Code Section 50-27-162, an744
individual who is 21 years of age or older and who is physically located in this state may745
place a wager in the manner authorized under this article and the rules and regulations of746
the corporation.747
50-27-162.748
(a)  The following individuals and categories of individuals shall not, directly or indirectly,749
place a wager on sporting events or online sports betting platforms in this state:750
(1)  A member, officer, or employee of the corporation shall not place a wager on any751
sporting event or platform;752
(2)  A corporation vendor employee shall not place a wager on a sporting event using753
their employer's platform;754
(3)  A licensee or principal owner, partner, member of the board of directors, officer, or755
supervisory employee of a licensee shall not place a wager on the licensee's platform;756
(4)  A person that provides good or services to a licensee or any principal owner, partner,757
member of the board of directors, officer, or supervisory employee of a person that758
provides such goods or services shall not place a wager on the licensee's platform;759
(5)  A contractor, subcontractor, or consultant or any officer or employee of a contractor,760
subcontractor, or consultant of a licensee shall not place a wager on the licensee's761
platform, if such individual is directly involved in the licensee's operation of sports762
betting or the processing of sports betting claims or payments through the licensee's763
platform;764 23 LC 36 5434
H. B. 380
- 31 -
(6)  An individual subject to a contract with the corporation shall not place a wager on765
any platform, if the contract contains a provision prohibiting the individual from766
participating in sports betting;767
(7)  An individual with access to material nonpublic information that is known768
exclusively by an individual who is prohibited from placing a wager in this state under769
this Code section shall not use any such information to place a wager on any sporting770
event or platform;771
(8)  An amateur or Olympic athlete shall not place a wager on any sporting event in772
which the athlete participates;773
(9)  A professional athlete shall not place a wager on any sporting event overseen by such774
athlete's professional sports governing body or sporting events operator;775
(10)  An owner or employee of a team, player, umpire, or sports union personnel, or776
employee, referee, coach, or official of a professional sports governing body or sporting777
events operator shall not place a wager on any sporting event, if the wager is based on a778
sporting event overseen by the individual's professional sports governing body or sporting779
events operator;780
(11)  An individual having the ability to directly affect the outcome of a sporting event781
shall not place a wager on such sporting event;782
(12)  A trustee or regent of a governing board of a public or private institution of higher783
education shall not place a wager on a collegiate sporting event;784
(13)  An individual prohibited by the rules or regulations of a professional sports785
governing body or sporting events operator of a collegiate sports, team, league, or786
association from participating in sports betting shall not place a wager on any sporting787
event to which such prohibition applies; and788
(14)  A student or an employee of a public or private institution of higher education who789
has access to material nonpublic information concerning a student athlete or a sports team790 23 LC 36 5434
H. B. 380
- 32 -
shall be prohibited from placing a wager on a collegiate sporting event if such791
information is relevant to the outcome of such event.792
(b)  The corporation may prescribe by rules and regulations additional individuals and793
categories of individuals who are prohibited from placing a wager on specified sporting794
events or online sports betting platforms in this state.795
(c)  Any individual who places a wager in violation of this Code section:796
(1)  For a first offense, shall be guilty of a misdemeanor;797
(2)  For a second offense, shall be guilty of a misdemeanor and shall be fined not less798
than $500.00 nor more than $1,000.00 or shall be imprisoned for not less than one month799
nor more than five months, or both; and800
(3)  For a third or subsequent offense, shall be guilty of a misdemeanor of a high and801
aggravated nature and shall be fined not less than $750.00 or shall be imprisoned for not802
less than three months, or both.803
50-27-163.804
(a)  The corporation shall by rules and regulations prohibit betting on injuries, penalties,805
the outcome of player discipline rulings or replay reviews, and any other type or form of806
betting under this article that is contrary to public policy or unfair to bettors.807
(b)(1)  A professional sports governing body or sporting events operator may submit to808
the corporation in writing, by providing notice in such form and manner as the809
corporation may require, a request to restrict, limit, or prohibit a certain type, form, or810
category of sports betting with respect to its sporting events, if the professional sports811
governing body or sporting events operator believes that such type, form, or category of812
sports betting with respect to its sporting events may undermine the integrity or perceived813
integrity of such professional sports governing body or sporting events operator or its814
sporting events.  The corporation shall request comments from sports betting licensees815
and sports betting services provider licensees on all such requests it receives.816 23 LC 36 5434
H. B. 380
- 33 -
(2)  After giving due consideration to all comments received, the corporation shall, upon817
demonstration of good cause from the requestor that such type, form, or category of818
sports betting is likely to undermine the integrity or perceived integrity of such819
professional sports governing body or sporting events operator or its sporting events,820
grant the request.  The corporation shall respond to a request concerning a particular821
sporting event before the start of the event, or if it is not feasible to respond before then,822
no later than seven days after the request is made.  If the corporation determines that the823
requestor is more likely than not to prevail in successfully demonstrating good cause for824
its request, the corporation may provisionally grant the request of the professional sports825
governing body or sporting events operator until the corporation makes a final826
determination as to whether the requestor has demonstrated good cause.  Absent such a827
provisional grant by the corporation, sports betting licensees may continue to offer sports828
betting on sporting events that are the subject of such a request during the pendency of829
the corporation's consideration of the applicable request.830
Part 5831
50-27-170.832
(a)  Prior to placing a wager with a licensee via online sports betting, a bettor shall register833
and establish a player account with the licensee remotely and attest that the bettor meets834
the requirements to place a wager with a licensee in this state.  Prior to verification of a835
bettor's identity in accordance with this Code section, a licensee shall not allow the bettor836
to engage in sports betting, make a deposit, or process a withdrawal via online sports837
betting.  A licensee shall implement commercially and technologically reasonable838
procedures to prevent access to sports betting by minors on its online sports betting839
platforms.  A licensee may use information obtained from third parties to verify that an840 23 LC 36 5434
H. B. 380
- 34 -
individual is authorized to open an account, place wagers, and make deposits and841
withdrawals.842
(b)  Each online sports betting services provider licensee shall adopt a registration policy843
to ensure that all bettors utilizing online sports betting are authorized to place a wager with844
a licensee within this state.  Such policy shall include, without limitation, commercially845
reasonable mechanisms which shall:846
(1)  Verify the name and age of the registrant;847
(2)  Verify that the registrant is not knowingly prohibited from placing a wager under848
Code Section 50-27-162; and849
(3)  Obtain the following information from the registrant:850
(A)  Legal name;851
(B)  Date of birth;852
(C)  Physical address other than a post office box;853
(D)  Phone number;854
(E)  A unique username; and855
(F)  An active email account.856
(c)  Each online sports betting services provider licensee may in its discretion require a857
bettor to provide the licensee with a signed and notarized document attesting that the bettor858
is qualified to engage in sports betting under this article as part of the registration policy859
of the licensee.860
(d)  A bettor shall not register more than one account with a licensee, and each licensee861
shall use commercially and technologically reasonable means to ensure that each bettor is862
limited to one account.863
(e)  Each online sports betting services provider licensee, in addition to complying with864
state and federal law pertaining to the protection of the private, personal information of865
registered bettors, shall use all other commercially and technologically reasonable means866
to protect such information consistent with industry standards.867 23 LC 36 5434
H. B. 380
- 35 -
(f)  When a bettor's account is created, a bettor may fund the account through:868
(1)  Electronic bank transfer of funds, including such transfers through third parties;869
(2)  Debit cards;870
(3)  Online and mobile payment systems that support online money transfers; and871
(4)  Any other method approved by rules and regulations of the corporation.872
(g)(1)  Licensees shall not allow bets to be placed until first verifying the identity of the873
bettor pursuant to this Code section and by rules promulgated by the corporation.874
Further, and pursuant to rules promulgated by the corporation, licensees shall establish875
safeguards, including, but not limited to, access notifications and similar security876
safeguards, to protect each bettor's account.877
(2)  If a licensee determines that the information provided by a bettor to make a deposit878
or process a withdrawal is inaccurate or incapable of verification or violates the policies879
and procedures of the licensee, the licensee shall, within ten days, require the submission880
of additional information that can be used to verify the identity of such bettor.881
(3)  If such information is not provided or does not result in verification of the bettor's882
identity, the licensee shall:883
(A)  Immediately suspend the bettor's account and shall not allow the bettor to place884
wagers;885
(B)  Retain any winnings attributable to the bettor;886
(C)  Refund the balance of deposits made to the account to the source of such deposit887
or by issuance of a check; and888
(D)  Suspend the account.889
(h)  A licensee shall utilize geofencing technology to ensure that online sports betting is890
available only to bettors who are physically located in this state.  Servers, including the use891
of backup servers, may be located outside of this state, consistent with federal law.  To the892
extent required by federal law, a licensee shall maintain in this state the servers it uses to893
accept wagers on a sporting event placed by bettors located in this state.894 23 LC 36 5434
H. B. 380
- 36 -
(i)  Each online sports betting services provider licensee shall clearly and conspicuously895
display on its website a statement indicating that it is illegal for a person under 21 years of896
age to engage in sports betting in this state.897
(j)  The corporation shall promulgate rules and regulations for purposes of regulating sports898
betting via online sports betting.899
50-27-171.900
(a)  Licensees shall allow bettors to limit their betting activity with the licensee by, at a901
minimum, giving bettors the opportunity to place limits on the amounts deposited, the902
amounts wagered, and the amount of time spent wagering.  Licensees shall take reasonable903
steps to prevent bettors from overriding their self-imposed responsible gambling limits.904
At the request of a bettor, a licensee may share the requested limitations with the905
corporation for the sole purpose of disseminating the request to other licensees.906
(b)  The corporation shall promulgate rules and regulations that require a licensee to907
implement responsible sports betting programs that include comprehensive training on908
responding to circumstances in which individuals present signs of problem gambling or a909
betting or gambling disorder.910
(c)  The corporation shall work with national and local organizations to provide services911
for individuals with problem gambling or a betting or gambling disorder and to establish912
prevention initiatives to reduce the number of individuals with problem gambling or a913
betting or gambling disorder, including, but not limited to, utilizing currently established914
programs for problem gambling or betting or gambling disorders.915
(d)  All sports betting advertisements shall prominently display messaging designed to916
prevent problem gambling and provide information about how to access resources related917
to problem gambling, including the National Council on Problem Gambling's helpline or918
other similar toll-free helpline.919 23 LC 36 5434
H. B. 380
- 37 -
(e)  The corporation shall annually generate a report outlining activities with respect to920
problem gambling and betting or gambling disorders, including, but not limited to,921
descriptions of programs, grants, and other resources made available; the number of922
individuals seeking assistance; the number of individuals who reported completing923
programs and therapies; and the rate of recidivism, if known to the corporation.  The924
corporation shall file the annual report with the Governor, the Lieutenant Governor, and925
the Speaker of the House of Representatives and shall publish such report on its website926
no later than January 30 of each year.927
50-27-172.928
(a)  Each licensee shall adopt and adhere to a written, comprehensive policy outlining its929
rules governing the acceptance of wagers and payouts.  Such policy and rules must be930
approved by the corporation prior to the acceptance of a wager by a licensee.  Such policy931
and rules must be readily available to a bettor on the licensee's website.932
(b)  The corporation shall promulgate rules and regulations regarding:933
(1)  The manner in which a licensee accepts wagers from and issues payouts to bettors,934
including payouts in excess of $10,000.00; and935
(2)  Requirements for reporting suspicious wagers.936
Part 6937
50-27-180.938
(a)  Licensees are not required to use official league data or official event data for939
determining the results of:940
(1)  Tier 1 sports wagers on events of any organization, whether headquartered in the941
United States or elsewhere; or942 23 LC 36 5434
H. B. 380
- 38 -
(2)  Tier 2 sports wagers on events of organizations that are not headquartered in the943
United States.944
(b)(1)  A professional sports governing body or sporting events operator headquartered945
in the United States may notify the corporation that it desires licensees to use official946
league data or official event data for determining the results of tier 2 sports wagers on its947
sporting events.  A notification under this subsection shall be made in the form and948
manner as the corporation shall require.  The corporation shall notify each licensee within949
five days after receipt of such notification from a professional sports governing body or950
sporting events operator.  If a professional sports governing body or sporting events951
operator does not notify the corporation of its desire to supply official league data or952
official event data, licensees are not required to use official league data or official event953
data for determining the results of any tier 2 wagers on sporting events of that954
professional sports governing body or sporting events operator.955
(2)  Within 60 days after the corporation notifies each licensee as provided under956
paragraph (1) of this subsection, or within a longer period as may be agreed between such957
professional sports governing body or sporting events operator and the applicable958
licensee, each such licensee shall be required to use only official league data or official959
event data, as applicable, to determine the results of  tier 2 sports wagers on sporting960
events sanctioned by such professional sports governing body or sporting events operator,961
except when:962
(A)  The professional sports governing body or sporting events operator, or a designee963
thereof, is unable to provide a feed of official league data or official event data to964
determine the results of a particular type of tier 2 sports wager, in which case licensees965
may use any data source for determining the results of the applicable tier 2 sports wager966
until the data feed becomes available on commercially reasonable terms and conditions;967
or968 23 LC 36 5434
H. B. 380
- 39 -
(B)  A licensee is able to demonstrate to the corporation that the professional sports969
governing body or sporting events operator, or a designee thereof, will not provide a970
feed of official league data or official event data to the licensee on commercially971
reasonable terms and conditions.972
(3)  The following is a nonexclusive list of factors the corporation may consider in973
evaluating whether official league data or official event data is being offered on974
commercially reasonable terms and conditions for purposes of subparagraphs (A) and (B)975
of paragraph (2) of this subsection:976
(A)  The availability of tier 2 official league data of a professional sports governing977
body or tier 2 official event data of a sporting events operator to a licensee from more978
than one authorized source;979
(B)  Market information, including, without limitation, price and other terms and980
conditions, regarding the purchase of comparable data by licensees for the purpose of981
settling sports wagers, for use in this state or other jurisdictions;982
(C)  The nature and quantity of the official league data or official event data, including,983
without limitation, its speed, accuracy, reliability, and overall quality as compared to984
comparable nonofficial data;985
(D)  The quality and complexity of the process used to collect and distribute the official986
league data or official event data as compared to comparable nonofficial data;987
(E)  The extent to which professional sports governing bodies or sporting events988
operators, or designees thereof, have made available to licensees the data used to settle989
the results of tier 2 sports wagers and any terms and conditions relating to the use of990
such data; and991
(F)  The extent to which licensees have purchased the same or similar official league992
data or official event data on the same or similar terms, particularly in jurisdictions993
where such purchase was not required by law or was required by law but only if offered994
on commercially reasonable terms.995 23 LC 36 5434
H. B. 380
- 40 -
(4)  Notwithstanding any provisions to the contrary in this Code section, including,996
without limitation, paragraph (2) of this subsection, while the corporation is evaluating997
whether a professional sports governing body or a sporting events operator, or the998
designee thereof, will provide a feed of official league data or official event data on999
commercially reasonable terms and conditions pursuant to paragraph (3) of this1000
subsection, licensees are not required to use official league data or official event data for1001
determining the results of tier 2 sports wagers.1002
(5)  The corporation shall make a determination under paragraph (3) of this subsection1003
within 60 days after the licensee notifies the corporation that it desires to demonstrate that1004
the professional sports governing body or sporting events operator, or a designee thereof,1005
will not provide a feed of official league data or official event data to such licensee on1006
commercially reasonable terms and conditions.1007
Part 71008
50-27-190.1009
Members of the corporation or designated employees thereof may, during normal business1010
hours, enter the premises of any facility of a licensee, or a third party utilized by the1011
licensee to operate and conduct business in accordance with this article, for the purpose of1012
inspecting books and records kept as required by this article to ensure that the licensee is1013
in compliance with this article or to make any other inspection of the premises necessary1014
to protect the public interests of this state and its consumers.1015
50-27-191.1016
(a)  The corporation, licensees, corporation vendors, and vendors shall use commercially1017
reasonable efforts to cooperate with investigations conducted by any professional sports1018
governing body, any sporting events operator, and law enforcement agencies, including,1019 23 LC 36 5434
H. B. 380
- 41 -
but not limited to, using commercially reasonable efforts to provide or facilitate the1020
provision of betting information.1021
(b)  Licensees shall promptly report to the corporation any information relating to:1022
(1)  Abnormal betting activity or patterns that may indicate a concern with the integrity1023
of a sporting event; and1024
(2)  Conduct that corrupts the betting outcome of a sporting event for purposes of1025
financial gain, including match fixing.1026
(c)  Licensees shall as soon as is practicable report any information relating to conduct1027
described in subsection (b) of this Code section to the professional sports governing body1028
or sporting events operator.1029
(d)  Licensees shall use commercially reasonable efforts to maintain, in real time and at the1030
account level, anonymized information regarding a bettor; the amount and type of bet; the1031
time the bet was placed; the location of the bet, including the internet protocol address if1032
applicable; the outcome of the bet; and records of abnormal betting activity for three years1033
after the sporting event occurs.  The corporation may request such information in the form1034
and manner required by rules and regulations of the corporation.  For purposes of this1035
subsection, the term 'real time' means on a commercially reasonable periodic interval.1036
(e)  All records, documents, and information received by the corporation pursuant to this1037
Code section shall be considered investigative records of a law enforcement agency, shall1038
not be subject to Article 4 of Chapter 18 of this title, and shall not be released under any1039
condition without the permission of the person providing such records, documents, or1040
information.1041
(f)  Nothing in this Code section shall require a sports betting licensee to provide any1042
information that is prohibited by federal, state, or local laws or rules and regulations,1043
including, without limitation, laws and rules and regulations relating to privacy and1044
personally identifiable information.1045 23 LC 36 5434
H. B. 380
- 42 -
(g)  If a professional sports governing body or sporting events operator has notified the1046
corporation that access to the information described in subsection (d) of this Code section1047
for wagers placed on its sporting events is necessary to monitor the integrity of its sporting1048
events and represents to the corporation that it specifically uses such data for the purpose1049
of monitoring the integrity of sporting events of such professional sports governing body1050
or sporting events operator, then licensees shall share, in a commercially reasonable1051
frequency, form, and manner, with the professional sports governing body or sporting1052
events operator, or a designee thereof, the same information the licensee is required to1053
maintain under subsection (d) of this Code section with respect to sports wagers on such1054
a body's or operator's sporting events.  A professional sports governing body or sporting1055
events operator, or a designee thereof, shall use information received under this subsection1056
for integrity-monitoring purposes only and shall not use such information for a commercial1057
or any other purpose.  Nothing in this subsection shall require a licensee to provide any1058
information that is prohibited by federal, state, or local laws, rules, or regulations,1059
including, but not limited to, laws, rules, or regulations relating to privacy and personally1060
identifiable information.1061
50-27-192.1062
The corporation shall assist in any investigations by law enforcement to determine whether:1063
(1)  A licensee is accepting wagers from minors or other persons ineligible to place1064
wagers in this state; and1065
(2)  An individual is unlawfully accepting wagers from another individual without a1066
license or at a location in violation of this article.1067
50-27-193.1068
(a)  The corporation may investigate and conduct a hearing with respect to a licensee upon1069
information and belief that the licensee has violated this article or upon the receipt of a1070 23 LC 36 5434
H. B. 380
- 43 -
credible complaint from any person that a licensee has violated this article.  The1071
corporation shall conduct investigations and hearings in accordance with rules and1072
regulations adopted by the corporation.1073
(b)  If the corporation determines that a licensee has violated any provision of this article1074
or any rules and regulations of the corporation, the corporation may suspend, revoke, or1075
refuse to renew a license; impose an administrative fine not to exceed $25,000.00 per1076
violation; or both.1077
(c)  The corporation shall promulgate rules and regulations establishing a schedule of1078
administrative fines that may be assessed in accordance with subsection (b) of this Code1079
section for each violation of this article; provided, however, if the corporation finds that:1080
(1)  A licensee is accepting wagers from minors or other persons ineligible to place1081
wagers in this state, the corporation shall impose a fine against the licensee as follows:1082
(A)  For a first offense, $1,000.00;1083
(B)  For a second offense, $2,000.00; and1084
(C)  For a third or subsequent offense, $5,000.00; or1085
(2)  An individual is unlawfully accepting wagers from another individual without a1086
license, the corporation shall impose a fine against the individual as follows:1087
(A)  For a first offense, $10,000.00;1088
(B)  For a second offense, $15,000.00; and1089
(C)  For a third or subsequent offense, $25,000.00.1090
(d)  The corporation may refer conduct that it reasonably believes is a violation of Article 21091
of Chapter 12 of Title 16 to the appropriate law enforcement agency.1092
50-27-194.1093
(a)  Any person that violates any provisions of this article shall be liable for a civil penalty1094
of not more than $5,000.00 per violation, not to exceed $50,000.00 for violations arising1095 23 LC 36 5434
H. B. 380
- 44 -
out of the same transaction or occurrence, which shall accrue to the corporation and may1096
be recovered in a civil action brought by or on behalf of the corporation.1097
(b)  The corporation may seek and obtain an injunction in a court of competent jurisdiction1098
for purposes of enforcing this article.1099
(c)  Costs shall not be taxed against the corporation or this state for actions brought under1100
this article.1101
50-27-195.1102
(a)  Fines assessed under this article shall be accounted for separately for use by the1103
corporation in a manner consistent with rules and regulations of the corporation.1104
(b)  The corporation may issue subpoenas to compel the attendance of witnesses and the1105
production of relevant books, accounts, records, and documents for purposes of carrying1106
out its duties under this article.1107
50-27-196.1108
(a)  A licensee or other individual aggrieved by a final decision or action of the corporation1109
may appeal such decision or action to the Superior Court of Fulton County.1110
(b)  The Superior Court of Fulton County shall hear appeals from decisions or actions of1111
the corporation and, based upon the record of the proceedings before the corporation, may1112
reverse the decision or action of the corporation only if the appellant proves the decision1113
or action to be:1114
(1)  Clearly erroneous;1115
(2)  Arbitrary and capricious;1116
(3)  Procured by fraud;1117
(4)  A result of substantial misconduct by the corporation; or1118
(5)  Contrary to the United States Constitution, the Constitution of Georgia, or this article.1119 23 LC 36 5434
H. B. 380
- 45 -
(c)  The Superior Court of Fulton County may remand an appeal to the corporation to1120
conduct further hearings.1121
50-27-197.1122
(a)  It shall be unlawful for any person, directly or indirectly, to knowingly receive, supply,1123
broadcast, display, or otherwise transmit material nonpublic information for the purpose1124
of betting on a sporting event or influencing another individual's or entity's wager on a1125
sporting event.1126
(b)  This Code section shall not apply to the dissemination of public information as news,1127
entertainment, or advertising.1128
(c)  Any person in violation of this Code section shall be guilty of a misdemeanor."1129
PART III1130
SECTION 3-1.1131
Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated,1132
relating to gambling, is amended by revising paragraph (1) of Code Section 16-12-20,1133
relating to definitions, as follows:1134
"(1)  'Bet' means an agreement that, dependent upon chance even though accompanied1135
by some skill, one stands to win or lose something of value.  A bet does not include:1136
(A)  Contracts of indemnity or guaranty or life, health, property, or accident insurance;1137
or1138
(B)  An offer of a prize, award, or compensation to the actual contestants in any bona1139
fide contest for the determination of skill, speed, strength, or endurance or to the owners1140
of animals, vehicles, watercraft, or aircraft entered in such contest; or1141
(C)  Any consideration paid to a person licensed by the Georgia Lottery Corporation1142
under Article 4 of Chapter 27 of Title 50 or an employee, agent, or other person acting1143 23 LC 36 5434
H. B. 380
- 46 -
in furtherance of his or her employment by such licensee on the partial or final result1144
of or performance during any professional or intercollegiate sporting event, contest, or1145
exhibition that had not begun at the time the consideration was paid."1146
SECTION 3-2.1147
Said part is further amended by revising Code Section 16-12-27, relating to advertisement1148
or solicitation for participation in lotteries, as follows:1149
"16-12-27.1150
(a)  It shall be unlawful for any person, partnership, firm, corporation, or other entity to1151
sell, distribute, televise, broadcast, or disseminate any advertisement, television or radio1152
commercial, or any book, magazine, periodical, newspaper, or other written or printed1153
matter containing an advertisement or solicitation for participation in any lottery declared1154
to be unlawful by the laws of this state unless such advertisement, commercial, or1155
solicitation contains or includes the words 'void in Georgia' printed or spoken so as to be1156
clearly legible or audible to persons viewing or hearing such advertisement, commercial,1157
or solicitation.1158
(b)  Any person, partnership, firm, corporation, or other entity violating subsection (a) of1159
this Code section shall be guilty of a misdemeanor.1160
(c)  This Code section shall not apply to any advertisement or solicitation for participation1161
in a lottery game of online sports betting by any person licensed by the Georgia Lottery1162
Corporation under Article 4 of Chapter 27 of Title 50 that is concerning such licensee's1163
lawful activities."1164
SECTION 3-3.1165
Said part is further amended by revising Code Section 16-12-28, relating to communicating1166
gambling information, as follows:1167 23 LC 36 5434
H. B. 380
- 47 -
"16-12-28.
1168
(a)  A person who knowingly communicates information as to bets, betting odds, or1169
changes in betting odds or who knowingly installs or maintains equipment for the1170
transmission or receipt of such information with the intent to further gambling commits the1171
offense of communicating gambling information.1172
(b)  A person who commits the offense of communicating gambling information, upon1173
conviction thereof, shall be punished by imprisonment for not less than one nor more than1174
five years or by a fine not to exceed $5,000.00, or both.1175
(c)  This Code section shall not apply to the activities of a person licensed by the Georgia
1176
Lottery Corporation under Article 4 of Chapter 27 of Title 50 or an employee, agent, or1177
other person acting in furtherance of his or her employment by such licensee."1178
PART IV1179
SECTION 4-1.1180
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is1181
amended by revising paragraph (55) of Code Section 48-8-3, relating to exemptions from1182
state sales and use tax, as follows:1183
"(55)  The sale of lottery tickets authorized by Chapter 27 of Title 50 or wagers1184
authorized by Article 4 of Chapter 27 of Title 50;"1185
PART V1186
SECTION 5-1.1187
This Act shall become effective upon its approval by the Governor or upon its becoming law1188
without such approval.1189 23 LC 36 5434
H. B. 380
- 48 -
SECTION 5-2.
1190
All laws and parts of laws in conflict with this Act are repealed.1191