23 LC 36 5535S
H. B. 380 (SUB)
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The House Committee on Higher Education offers the following substitute to HB 380:
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 5535S
H. B. 380 (SUB)
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exemption of persons licensed for online sports betting from regulations and restrictions19
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 5535S
H. B. 380 (SUB)
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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; 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 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 5535S
H. B. 380 (SUB)
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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 5535S
H. B. 380 (SUB)
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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 article, the term:114 23 LC 36 5535S
H. B. 380 (SUB)
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(1) 'Adjusted gross income' means the total of all moneys paid to a licensee as bets minus115
federal excise taxes and minus the total amount paid out to winning bettors, including the116
cash value of merchandise.117
(2) 'Applicant' means any person that applies for a license under this article.118
(3) 'Bettor' means an individual who is:119
(A) Physically present in this state when placing a wager with a licensee;120
(B) Twenty-one years of age or older; and121
(C) Not prohibited from placing a wager or bet under Code Section 50-27-162.122
(4) 'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves123
to account for losses suffered by a licensee and owed to bettors.124
(5) 'Cheating' means improving the chances of winning or altering the outcome through125
deception, interference, or manipulation of a sporting event or of any equipment,126
including software, pertaining to or used in relation to the equipment used for or in127
connection with the sporting event on which wagers are placed or invited. Such term128
shall include match fixing and attempts and conspiracy to cheat.129
(6) 'Collegiate sporting event' means a sporting or athletic event involving a sports or130
athletic team of a public or private institution of higher education.131
(7) 'Esports event' means an organized video game competition between players who132
play individually or as teams.133
(8) 'Fantasy or simulated contest' means a game or event in which one or more players134
compete based on winning outcomes that reflect the relative knowledge and skill of the135
players and are determined predominately by accumulated statistical results of the136
performance of individuals, including, but not limited to, athletes in sporting events.137
(9) 'Fixed-odds betting' means bets made at predetermined odds or on the spread where138
the return to the bettor is unaffected by any later change in odds or the spread.139
(10) 'Futures bet' means a wager made on the occurrence of an event in the future140
relating to a sporting event.141 23 LC 36 5535S
H. B. 380 (SUB)
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(11) 'Institutional investor' means:142
(A) A retirement fund administered by a public agency for the exclusive benefit of143
federal, state, or local public employees;144
(B) An investment company registered under the Investment Company Act of 1940;145
(C) A chartered or licensed life insurance company or property and casualty insurance146
company;147
(D) A banking and other chartered or licensed lending institution;148
(E) An investment advisor registered under the Investment Advisers Act of 1940; or149
(F) A pension investment board.150
(12) 'License' means any of the licenses issued by the corporation under this article.151
(13) 'Licensee' means a person that holds a license issued by the corporation under this152
article.153
(14) 'Master sports betting licensee' means the Georgia Lottery Corporation.154
(15) 'Material nonpublic information' means information that has not been disseminated155
publicly concerning an athlete, contestant, prospective contestant, or athletic team,156
including, without limitation, confidential information related to medical conditions or157
treatment, physical or mental health or conditioning, physical therapy or recovery,158
discipline, sanctions, academic status, education records, eligibility, playbooks, signals,159
schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or160
recordings of practices or other athletic activities.161
(16) 'Minor' means an individual who is less than 21 years of age.162
(17) 'Money line' means the fixed odds in relation to a dollar amount that a team or163
person participating in a sporting event will win outright regardless of the spread.164
(18) 'Official event data' means statistics, results, outcomes, and other data related to a165
sporting event obtained pursuant to an agreement with the relevant sporting events166
operator whose corporate headquarters is based in the United States or an entity expressly167 23 LC 36 5535S
H. B. 380 (SUB)
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authorized by such sporting events operator to provide such information to licensees for168
purposes of determining the outcome of tier 2 sports wagers on such sporting event.169
(19) 'Official league data' means statistics, results, outcomes, and other data related to170
a sporting event obtained pursuant to an agreement with the relevant professional sports171
governing body whose corporate headquarters is based in the United States or an entity172
expressly authorized by such professional sports governing body to provide such173
information to licensees for purposes of determining the outcome of tier 2 sports wagers.174
(20) 'Online sports betting' means a wager on a sporting event that is placed via the175
internet through any electronic device and accepted through an online sports betting176
platform that is operated by a Type 1 sports betting licensee or such licensee's online177
sports betting services provider.178
(21) 'Online sports betting platform' means the combination of hardware, software, and179
data networks used to manage, administer, or control online sports betting and any180
associated wagers accessible by any electronic means.181
(22) 'Online sports betting services provider' means a person that contracts with the182
master sports betting licensee or a Type 1 sports betting licensee under Code Section183
50-27-133 to operate online sports betting on behalf of such licensee and that is licensed184
by the corporation.185
(23) 'Over/under bet' means a single wager that predicts whether the combined score of186
the two persons or teams engaged in a sporting event will be lower or higher than a187
predetermined number.188
(24) 'Parlay bet' means a single wager that incorporates two or more individual bets for189
purposes of earning a higher payout if each bet incorporated within the wager wins.190
(25) 'Principal owner' means a person that owns an interest of 10 percent or more of the191
entity.192 23 LC 36 5535S
H. B. 380 (SUB)
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(26) 'Professional sporting event' means an athletic or sporting event involving at least193
two competitors who have the opportunity to receive compensation for participating in194
such event.195
(27) 'Professional sports governing body' means the organization, league, or association196
that oversees a sport and prescribes final rules and enforces codes of conduct with respect197
to such sport and participants therein.198
(28) 'Professional sports team' means a major league professional team:199
(A) Based in this state;200
(B) That plays baseball, football, men's basketball, soccer, or women's basketball; and201
(C) Whose regular season games have had the highest attendance for its respective202
sport during the past five years.203
(29) 'Proposition bet' means a wager on a single specific action, statistic, occurrence, or204
nonoccurrence to be determined during a sporting event and includes any such action,205
statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of206
the sporting event to which it relates.207
(30) 'Relative' means a spouse, father, mother, son, daughter, grandfather, grandmother,208
brother, sister, uncle, aunt, cousin, nephew, niece, father-in-law, mother-in-law,209
son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,210
stepson, stepdaughter, stepbrother, stepsister, half-brother, or half-sister.211
(31) 'Sporting event' means any:212
(A) Professional sporting or professional athletic event, including motor sports213
sanctioned by a national or international organization or association;214
(B) Collegiate sporting event;215
(C) Olympic sporting or athletic event;216
(D) Sporting or athletic event sanctioned by a national or international organization or217
association;218
(E) Sporting or athletic event conducted or organized by a sporting events operator;219 23 LC 36 5535S
H. B. 380 (SUB)
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(F) Esports event; or220
(G) Other event authorized by the corporation.221
Such term shall not include a nonprofessional or non-Olympic sporting or athletic event222
if the majority of the participants are under the age of 18.223
(32) 'Sporting events operator' means a person that conducts or organizes a sporting224
event for athletes or other participants that is not held or sanctioned as an official sporting225
event of a professional sports governing body.226
(33) 'Sports betting' means online sports betting.227
(34) 'Sports betting equipment' means any of the following that is directly used in228
connection with the operation of sports betting:229
(A) Any mechanical, electronic, or other device, mechanism, or equipment;230
(B) Any software, application, components, or other goods; or231
(C) Anything to be installed or used on a patron's personal electronic device.232
(35)(A) 'Sports betting supplier' means a person that provides sports betting equipment233
necessary for the creation of sports betting markets and the determination of bet234
outcomes, directly to any sporting events operator or applicant involved in the235
acceptance of bets, including any of the following:236
(i) Providers of data feeds and odds services;237
(ii) Internet platform providers;238
(iii) Risk management providers:239
(iv) Integrity monitoring providers; and240
(v) Other providers of sports betting supplier services as determined by the241
corporation.242
(B) Such term shall not include a professional sports governing body that:243
(i) Provides official league data concerning its own sporting event to a sports betting244
licensee solely on that basis; or245 23 LC 36 5535S
H. B. 380 (SUB)
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(ii) Provides raw statistical match data to one or more designated and licensed246
suppliers of data feeds and odds services solely on that basis.247
(36) 'Spread' means the predicted scoring differential between two persons or teams248
engaged in a sporting event.249
(37) 'Supervisory employee' means a principal owner or employee having the authority250
to act on behalf of a licensee or whose judgment is relied upon to manage and advance251
the business operations of a licensee.252
(38) 'Tier 1 sports wager' means a sports wager that is determined solely by the final253
score or final outcome of the sporting event and is placed before the sporting event has254
begun.255
(39) 'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.256
(40) 'Type 1 eligible entity' means any of the following:257
(A) Any professional sports team, or its designee;258
(B) A professional sports governing body that holds one or more sanctioned annual259
golf tournaments on a national tour of professional golf in this state, and has held one260
or more of the same or different sanctioned annual golf tournaments on a national tour261
of professional golf in this state for at least 30 years;262
(C) The owner of a facility in this state that has held an annual invitational golf263
tournament for professional and amateur golfers for at least 30 years;264
(D) The owner of a facility located in this state that hosts automobile races on a265
national association for stock car racing national tour or a wholly owned for-profit266
subsidiary of the owner of such a facility, if the owner is a nonprofit corporation or267
nonprofit organization; and268
(E) The Georgia Lottery Corporation.269
(41) 'Type 1 sports betting licensee' means the master sports betting licensee, an online270
sports betting services provider that contracts with the master sports betting licensee, or271 23 LC 36 5535S
H. B. 380 (SUB)
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a Type 1 eligible entity licensed or authorized by the corporation to directly or indirectly272
offer online sports betting.273
(42) 'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown274
outcome of one or more sporting events. Such term shall be limited to fixed-odds betting,275
futures bets, a tier 1 or tier 2 sports wager, a money line bet, an over/under bet, a parlay276
bet, a proposition bet, or a bet on the spread. Such term shall not include a pari-mutuel277
bet or wager or an entry fee paid to participate in a fantasy or simulated contest.278
50-27-123.279
(a) The corporation shall have all powers and duties necessary to carry out the provisions280
of this article and to exercise the control of the lottery game of sports betting in this state281
as authorized by this article. Such powers and duties shall include, but shall not be limited282
to, the following:283
(1) To have jurisdiction, supervision, and regulatory authority over sports betting,284
including, but not limited to, regulation, licensure, and offering of sports betting on285
mobile applications available state wide via the internet and through a limited number of286
licenses to awarded to Type 1 sports betting licensees;287
(2) To have jurisdiction and supervision of all persons conducting, participating in, or288
attending any facility with sports betting;289
(3) To appoint and employ such persons as the corporation deems essential to perform290
its duties under this article and to ensure that such sports betting is conducted with order291
and the highest integrity. Such employees shall possess such authority and perform such292
duties as the corporation shall prescribe or delegate to them. Such employees shall be293
compensated as provided by the corporation;294
(4) To enter upon, investigate, and have free access to all places of business of any295
licensee under this article and to compel the production of any books, ledgers, documents,296
records, memoranda, or other information of any licensee to ensure such licensee's297 23 LC 36 5535S
H. B. 380 (SUB)
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compliance with the rules and regulations promulgated by the corporation pursuant to this298
article. Such rules and regulations shall be exempt from the requirements of Chapter 13299
of this title, the 'Georgia Administrative Procedure Act';300
(5) To promulgate any rules and regulations as the corporation deems necessary and301
proper to administer the provisions of this article; provided, however, that the initial rules302
and regulations governing sports betting shall be promulgated and adopted by the303
corporation within 90 days of the effective date of this article after an opportunity has304
been provided for public comment. The promulgation and adoption of such initial rules305
and regulations shall not be subject to Chapter 13 of this title, the 'Georgia Administrative306
Procedure Act';307
(6) To issue subpoenas for the attendance of witnesses before the corporation, administer308
oaths, and compel production of records or other documents and testimony of witnesses309
whenever, in the judgment of the corporation, it is necessary to do so for the effectual310
discharge of the duties of the corporation under this article;311
(7) To compel any person licensed by the corporation to file with the corporation such312
data, documents, and information as shall appear to the corporation to be necessary for313
the performance of the duties of the corporation under this article, including, but not314
limited to, financial statements and information relative to stockholders and all others315
with a pecuniary interest in such person;316
(8) To prescribe the manner in which books and records of persons licensed or permitted317
by the corporation under this article shall be kept;318
(9) To enter into arrangements with any foreign or domestic government or319
governmental agency for the purposes of exchanging information or performing any other320
act to better ensure the proper conduct of betting under this article;321
(10) To order such audits, in addition to those otherwise required by this article, as the322
corporation deems necessary and desirable;323 23 LC 36 5535S
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(11) Upon the receipt of a complaint of an alleged criminal violation of this article, to324
immediately report such complaint to the appropriate law enforcement agency with325
jurisdiction to investigate criminal activity;326
(12) To provide for the reporting of the applicable amount of state and federal income327
tax of persons claiming a prize or payoff for a winning wager under this article;328
(13) To establish and administer a program for providing assistance to problem329
gamblers, including, but not limited to, requiring the electronic posting of signs,330
notifications, or other relevant responsible gambling information in a clear and331
conspicuous manner on online sports betting platforms, including a national toll-free332
number that directs callers to an organization that provides assistance to problem333
gamblers;334
(14) To eject or exclude from the sports betting facility or any part thereof any335
individual, whether licensed or not, whose conduct or reputation is such that his or her336
presence may, in the opinion of the corporation or the designated employees of the337
corporation, reflect adversely on the honesty and integrity of the sports betting or338
interfere with the orderly conduct of the lottery game of sports betting;339
(15) To keep a true and full record of all proceedings of the corporation under this article340
and preserve at the corporation's general office all books, documents, and papers of the341
corporation; and342
(16) To adopt rules and regulations specific to the manner in which a licensee may343
advertise its business operations as authorized by this article.344
(b) The corporation shall not have the power to prescribe a licensee's maximum or345
minimum payout or hold percentage.346
(c) The corporation shall not have the power to issue or award and shall not issue or award347
any licenses provided for in this article prior to September 1, 2023.348 23 LC 36 5535S
H. B. 380 (SUB)
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50-27-124.349
(a) The corporation shall prescribe by rules and regulations:350
(1) The reserves that must be kept by licensees to comply with subparagraph (c)(7)(A)351
of Code Section 50-27-130 to pay off bettors;352
(2) Any insurance requirements for a licensee;353
(3) Minimum requirements by which each licensee shall exercise effective control over354
its internal fiscal affairs, including, without limitation, requirements for:355
(A) Safeguarding assets and revenues, including evidence of indebtedness;356
(B) Maintaining reliable records relating to accounts, transactions, profits and losses,357
operations, and events; and358
(C) Global risk management;359
(4) Requirements for internal and independent audits of licensees;360
(5) The manner in which periodic financial reports shall be submitted to the corporation361
from each licensee, including the financial information to be included in the reports;362
(6) The type of information deemed to be confidential financial or proprietary363
information that is not subject to any reporting requirements under this article;364
(7) Policies, procedures, and processes designed to mitigate the risk of cheating and365
money laundering; and366
(8) Any post-employment restrictions necessary to maintain the integrity of sports367
betting in this state.368
Part 2369
50-27-130.370
(a) Any person offering, operating, or managing sports betting in this state shall be371
licensed by the corporation.372 23 LC 36 5535S
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(b) The corporation shall issue licenses to qualified applicants able to meet the duties of373
a license holder under this article and that the corporation determines will best satisfy the374
following criteria:375
(1) Expertise in the business of online sports betting;376
(2) Integrity, sustainability, and safety of the online sports betting platform;377
(3) Past relevant experience of the applicant;378
(4) Advertising and promotional plans to maximize revenue;379
(5) Demonstrated commitment to and plans for the promotion of responsible gaming;380
and381
(6) Capacity to rapidly and efficiently bring bettors onto the applicant's platform.382
(c) An applicant for a license or for the renewal of a license shall submit an application on383
a form in such manner and in accordance with such requirements as may be prescribed by384
rules and regulations of the corporation. Such rules and regulations shall require, at a385
minimum, that the application include the following:386
(1) If the applicant is an entity, identification of the applicant's principal owners, board387
of directors, officers, and supervisory employees;388
(2) Evidence of the applicant's certificate of fitness for sports betting affiliation. If the389
applicant is an entity, such evidence shall be provided for every individual who is a390
principal owner;391
(3) Information, documentation, and assurances as may be required by the corporation392
to establish by clear and convincing evidence the applicant's good character, honesty, and393
integrity, including, but not limited to, information pertaining to family, habits, character,394
reputation, criminal and arrest records, business activities, financial affairs, and business,395
professional, and personal associates, covering at least the ten-year period immediately396
preceding the filing of the application;397 23 LC 36 5535S
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(4) Notice and a description of civil judgments obtained against the applicant pertaining398
to antitrust or security regulation laws of the federal government, this state, or any other399
state, jurisdiction, province, or country;400
(5) To the extent available, letters of reference or the equivalent from law enforcement401
agencies having jurisdiction of the applicant's place of residence and principal place of402
business. Each such letter of reference shall indicate that the law enforcement agency403
does not have any pertinent information concerning the applicant or, if such law404
enforcement agency does have information pertaining to the applicant, shall provide such405
information, to the extent permitted by law;406
(6) If the applicant has conducted sports betting operations in another jurisdiction, a407
letter of reference from the regulatory body that governs sports betting that specifies the408
standing of the applicant with such regulatory body; provided, however, that, if no such409
letter is received within 60 days of the request therefor, the applicant may submit a410
statement under oath that the applicant is or was, during the period such activities were411
conducted, in good standing with the regulatory body;412
(7) Information, documentation, and assurances concerning financial background and413
resources as may be required to establish by clear and convincing evidence the financial414
stability, integrity, and responsibility of the applicant, including, but not limited to, bank415
references, business and personal income and disbursement schedules, tax returns and416
other reports filed with governmental agencies, and business and personal accounting and417
check records and ledgers. Each applicant shall, in writing, authorize the examination of418
all bank accounts and records as may be deemed necessary by the corporation. The419
corporation may consider any relevant evidence of financial stability. The applicant shall420
be presumed to be financially stable if the applicant establishes by clear and convincing421
evidence the ability to:422
(A) Assure the financial integrity of sports betting operations by the maintenance of423
a reserve of not less than $500,000.00 or the amount required to cover the outstanding424 23 LC 36 5535S
H. B. 380 (SUB)
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liabilities for wagers accepted by the licensee, whichever is greater. Outstanding425
liabilities for wagers shall mean the sum of the amount paid by patrons for wagers that426
have not yet been determined and the amount owed but unpaid by licensees to patrons427
for wagers whose results have been determined. The reserve may take the form of a428
bond, an irrevocable letter of credit, payment processor reserves and receivables, cash429
or cash equivalents segregated from operational funds, guaranty letter, or a combination430
thereof. Such reserve shall be adequate to pay winning wagers to bettors when due.431
An applicant is presumed to have met this standard if the applicant maintains, on a daily432
basis, a minimum reserve in an amount which is at least equal to the average daily433
minimum reserve, calculated on a monthly basis, for the corresponding month in the434
previous year;435
(B) Meet ongoing operating expenses which are essential to the maintenance of436
continuous and stable sports betting operations; and437
(C) Pay, as and when due, all state and federal taxes;438
(8) Information, documentation, and assurances as may be required to establish by clear439
and convincing evidence that the applicant has sufficient business ability and sports440
betting experience to establish the likelihood of the creation and maintenance of441
successful, efficient sports betting operations in this state;442
(9) Information, as required by rules and regulations of the corporation, regarding the443
financial standing of the applicant, including, without limitation, each person or entity444
that has provided loans or financing to the applicant;445
(10) A nonrefundable application fee and licensing fee as follows:446
(A) Applicants for a Type 1 sports betting license shall pay a nonrefundable447
application fee in the amount of $100,000.00 and an annual licensing fee in the amount448
of $1.5 million; provided, however, that, for those licenses referred to in paragraph (3)449
of subsection (b) of Code Section 50-27-133, such annual licensing fee shall instead be450
$750,000.00 and the application fee and annual licensing fee shall be paid by the online451 23 LC 36 5535S
H. B. 380 (SUB)
- 19 -
sports betting services provider and not by the corporation, which shall not be required452
to pay any such fees;453
(B) Applicants for an online sports betting services provider license shall pay a454
nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee455
of $100,000.00; provided, however, that an online sports betting services provider that456
applies for and obtains one of the licenses referred to in paragraph (3) of subsection (b)457
of Code Section 50-27-133 shall only be required to pay the nonrefundable application458
fee and annual licensing fee applicable to the applicant's Type 1 sports betting license;459
and460
(C) Applicants for a sports betting supplier license shall pay a nonrefundable461
application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;462
and463
(11) Any additional information, documents, or assurances required by rules and464
regulations of the corporation.465
(d) The corporation shall review and approve or deny an application for a license not more466
than 90 days after receipt of an application.467
50-27-131.468
(a) A licensee may renew its license by submitting an application on a form in such469
manner and in accordance with such requirements as may be prescribed by rules and470
regulations of the corporation. A licensee shall submit the nonrefundable application fee471
prescribed under paragraph (10) of subsection (c) of Code Section 50-27-130 with its472
application for license renewal.473
(b) For each application for licensure or renewal of a license approved under this Code474
section, the amount of the application fee shall be credited toward the licensee's annual475
licensing fee and the licensee shall remit the balance of the annual fee to the corporation476
upon approval of a license.477 23 LC 36 5535S
H. B. 380 (SUB)
- 20 -
(c) Each licensee shall have a continuing duty to promptly inform the corporation of any478
change in status relating to any information that may disqualify the licensee from holding479
a license under Code Section 50-27-132.480
(d) A professional sports governing body may enter into commercial agreements with481
licensees or other entities that provide for such professional sports governing body to share482
in the amounts wagered or revenue derived from wagers on sporting events of such483
professional sports governing body. A professional sports governing body shall not be484
required to obtain any approval or other form of authorization from the corporation to enter485
into such commercial agreements or to lawfully accept such amounts or revenues. The486
corporation shall not prescribe any terms or conditions that are required to be included into487
such commercial agreements.488
(e) A person that holds a license or permit to engage in sports betting issued by another489
jurisdiction may submit a request to the corporation for a temporary license for such person490
to immediately commence engagement in this state in sports betting. Such request shall491
include the licensing fee required under paragraph (10) of subsection (c) of Code Section492
50-27-130.493
(f) Upon receiving a request for a temporary license, the chief executive officer may494
review the request at his or her discretion. If the chief executive officer reviews the request495
and determines that the person requesting the temporary license holds a license or permit496
issued by another jurisdiction to engage in sports betting and has paid the required497
licensing fee, the chief executive officer may authorize such person to engage in sports498
betting pursuant to this article under a temporary license for up to one year or until a final499
determination on such person's application is made, whichever is later.500
(g) All licenses issued under this article shall be valid for a term of five years, unless501
suspended or revoked as provided under this article.502
(h) The corporation may adopt rules and regulations prescribing the manner in which a503
license may be transferred and a fee for a license transfer.504 23 LC 36 5535S
H. B. 380 (SUB)
- 21 -
(i) A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully505
operating in this state and the licensee shall be the beneficiary of any interest accrued506
thereon.507
50-27-132.508
(a) The following persons shall not be eligible to apply for or obtain a license under this509
article:510
(1) A member of the board of directors or employee of the corporation or an employee511
of a corporation vendor; provided, however, that a corporation vendor as an entity may512
be eligible to apply for or obtain a license;513
(2) An employee of a professional sports team on which the applicant offers sports514
betting;515
(3) A coach of or player for a collegiate, professional, or Olympic sports team or sport516
or an entity that has an affiliation or interest in such a sports team or sport;517
(4) An individual who is a member or employee of any professional sports governing518
body or sporting events operator;519
(5) An individual or entity with an owner, officer, or director who has been convicted of520
a crime of moral turpitude or similar degree as specified in rules and regulations521
promulgated by the corporation pursuant to this article;522
(6) A person having the ability to directly affect the outcome of a sporting event upon523
which the applicant offers sports betting;524
(7) A trustee or regent of a governing board of a public or private institution of higher525
education;526
(8) An individual prohibited by the rules or regulations of a professional sports527
governing body or sporting events operator of a collegiate sports, team, league, or528
association from participating in sports betting;529 23 LC 36 5535S
H. B. 380 (SUB)
- 22 -
(9) A student or an employee of a public or private institution of higher education who530
has access to material nonpublic information concerning a student athlete or a sports531
team; and532
(10) Any other category of persons, established by rules and regulations of the533
corporation, that, if licensed, would negatively affect the integrity of sports betting in this534
state.535
(b) An individual listed in paragraphs (2) through (10) of subsection (a) of this Code536
section may hold an ownership interest in an applicant or licensee without disqualifying537
the applicant or licensee from obtaining or holding a license; provided, however, that such538
an ownership interest of 25 percent or more shall require approval from the corporation.539
In determining whether such an ownership interest shall be the basis of disqualification, the540
corporation shall consider whether such interest would negatively affect the integrity of541
sports betting in this state and any other factors the corporation shall deem relevant.542
50-27-133.543
(a) A Type 1 sports betting license authorizes a Type 1 eligible entity, or its designated544
online sports betting services provider, to offer online sports betting. If a Type 1 eligible545
entity designates an online sports betting services provider, the online sports betting546
services provider is considered the applicant for a Type 1 sports betting license and is547
considered the Type 1 sports betting licensee for all aspects of the regulatory control of the548
corporation and the operations under the Type 1 sports betting license. The corporation549
shall establish a procedure for a Type 1 eligible entity to designate an online sports betting550
provider.551
(b) The corporation shall issue not more than 16 Type 1 sports betting licenses to Type 1552
eligible entities or their designated online sports betting services providers in accordance553
with the following:554 23 LC 36 5535S
H. B. 380 (SUB)
- 23 -
(1) Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities555
defined in subparagraph (A) of paragraph (40) of Code Section 50-27-122 or their556
designated online sports betting services providers; provided, however, that more than557
one license may be issued to an owner of multiple professional sports teams;558
(2) One Type 1 sports betting license shall be reserved for each of the Type 1 eligible559
entities defined in subparagraphs (B) through (E) of paragraph (40) of Code Section560
50-27-122 or their designated online sports betting services providers; and561
(3) The corporation shall award contracts to manage the remaining seven Type 1 sports562
betting licenses to separate online sports betting services providers via a public563
procurement process;564
provided, however, that a master sports betting license shall authorize the corporation565
through a designated online sports betting services provider to offer online sports betting.566
(c) A Type 1 eligible entity may contract with no more than one online sports betting567
services provider to operate online sports betting on behalf of the Type 1 eligible entity.568
(d) A Type 1 eligible entity shall provide written notice to the corporation of its intention,569
or its designated sports betting services provider's intention, to apply for a Type 1 sports570
betting license within 60 days of the effective date of this article. The failure of a Type 1571
eligible entity to provide such written notice shall result in the permanent disqualification572
and prohibition of such Type 1 eligible entity or its designated sports betting services573
provider from obtaining a Type 1 sports betting license.574
(e) A Type 1 sports betting licensee shall not offer online sports betting until the575
corporation has issued a license to at least one online sports betting services provider that576
has been awarded a sports betting license via the public procurement process as determined577
by the corporation.578
(f) All applicants for the 16 Type 1 sports betting licenses under subsection (b) of this579
Code section that have submitted an application within 30 days of the date in which the580
corporation began to accept applications for Type 1 sports betting licenses shall be given581 23 LC 36 5535S
H. B. 380 (SUB)
- 24 -
an equal opportunity to first commence offering, conducting, or operating online sports582
betting in this state on the same day, and in any event not later than January 31, 2024.583
(g) A Type 1 eligible entity described in subparagraphs (A) through (D) of paragraph (40)584
of Code Section 50-27-122 that becomes a Type 1 sports betting licensee or designates an585
online sports betting services provider shall establish and maintain procedures with respect586
to sporting events which the Type 1 eligible entity participates in or administers to ensure587
avoidance of conflicts of interest in the operation of sports betting in this state.588
50-27-134.589
(a) An online sports betting services provider shall offer online sports betting only in590
accordance with the provisions of this article and the rules and regulations adopted by the591
corporation under this article.592
(b) An online sports betting services provider shall obtain a license under this article593
before offering online sports betting pursuant to a contract with a Type 1 sports betting594
licensee or master sports betting licensee. An online sports betting services provider595
license shall entitle the holder to contract with no more than one Type 1 sports betting596
licensee.597
(c) If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a598
member of a league, association, or organization that prevents the holder from being599
subject to the regulatory control of the corporation or from otherwise operating under the600
license, such a Type 1 eligible entity may contractually appoint an online sports betting601
services provider for all aspects of corporation oversight and operations under the Type 1602
sports betting license.603
(d) Institutional investors shall be exempt from any and all qualification and disclosure604
requirements under this article or required under the rules and regulations promulgated by605
the corporation pursuant to this article. Such exemption shall extend to the owners,606
directors, and officers of such institutional investors.607 23 LC 36 5535S
H. B. 380 (SUB)
- 25 -
50-27-135.608
Proposition bets shall only be offered on online sports betting platforms by the master609
sports betting licensee, an online sports betting services provider that contracts with the610
master sports betting licensee, or a Type 1 sports betting licensee.611
Part 3612
50-27-150.613
(a) Notwithstanding any other law to the contrary, there shall be imposed an annual614
privilege tax of 25 percent of the adjusted gross income derived from online sports betting615
in accordance with this Code section.616
(b) The privilege tax described in subsection (a) of this Code section shall be paid by the617
online sports betting services provider; provided, however, that, if a Type 1 sports betting618
licensee does not contract with an online sports betting services provider, such privilege619
tax shall be paid by such Type 1 sports betting licensee as provided for in subsection (c)620
of this Code section. This subsection shall not apply to the master licensee.621
(c) The privilege tax imposed under this Code section shall be paid monthly by the online622
sports betting services provider based on its monthly adjusted gross income for the623
immediately preceding calendar month. The privilege tax shall be paid to the corporation624
in accordance with rules and regulations promulgated by the corporation. If the online625
sports betting services provider's adjusted gross income for a month is a negative number,626
such online sports betting services provider may carry over such negative amount to627
subsequent months.628
(d) All moneys from privilege taxes and fees collected under this Code section shall be629
distributed and used as provided under Article I, Section II, Paragraph VIII of the630
Constitution.631 23 LC 36 5535S
H. B. 380 (SUB)
- 26 -
(e) With the exemption of licensing fees imposed by paragraph (10) of subsection (c) of632
Code Section 50-27-130, this privilege tax is in lieu of all other state and local sales and633
income taxes and fees imposed on the operation of sports betting or on the proceeds from634
the operation of sports betting in this state.635
50-27-151.636
(a) Each licensee shall report to the corporation, no later than January 15 of each year:637
(1) The total amount of wagers received from bettors for the immediately preceding638
calendar year;639
(2) The adjusted gross income of the licensee for the immediately preceding calendar640
year; and641
(3) Any additional information required by rules and regulations of the corporation642
deemed in the public interest or necessary to maintain the integrity of sports betting in643
this state.644
(b) A licensee shall promptly report to the corporation any information relating to:645
(1) The name of any newly elected officer or director of the board of the licensed entity;646
and647
(2) The acquisition by any person of 10 percent or more of any class of corporate stock.648
(c) With respect to information reported under subsection (b) of this Code section, a649
licensee shall include with such report a statement of any conflict of interest that may exist650
as a result of such election or acquisition.651
(d) Upon receiving a report under this Code section or subsection (b) of Code652
Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section653
50-27-193 to determine whether the licensee remains in compliance with this article.654 23 LC 36 5535S
H. B. 380 (SUB)
- 27 -
Part 4655
50-27-160.656
(a) No person shall knowingly:657
(1) Allow a minor to place a wager;658
(2) Offer, accept, or extend credit to a bettor in the form of a marker; provided, however,659
that promotions and promotional credits shall be permitted to be offered and extended to660
bettors;661
(3) Target minors in advertising or promotions for sports betting;662
(4) Offer or accept a wager on any event, outcome, or occurrence other than a sporting663
event, including, without limitation, a high school sporting event offered, sponsored, or664
played in connection with a public or private institution that offers education at the665
secondary level; or666
(5) Accept a wager from an individual who is prohibited from placing a wager or bet667
under Code Section 50-27-162, if such person has notice or actual knowledge that such668
individual is prohibited from placing such a wager or bet.669
(b) A person that knowingly violates this Code section:670
(1) For a first offense, shall be indefinitely prohibited from placing a wager, be required671
to forfeit the proceeds of any illegal wager, and be guilty of a misdemeanor; and672
(2) For a second or subsequent offense, shall be required to forfeit the proceeds of any673
illegal wager and be guilty of a misdemeanor of a high and aggravated nature.674
50-27-161.675
Except for those individuals ineligible to place bets under Code Section 50-27-162, an676
individual who is 21 years of age or older and who is physically located in this state may677
place a wager in the manner authorized under this article and the rules and regulations of678
the corporation.679 23 LC 36 5535S
H. B. 380 (SUB)
- 28 -
50-27-162.680
(a) The following individuals and categories of individuals shall not, directly or indirectly,681
place a wager on sporting events or online sports betting platforms in this state:682
(1) A member, officer, or employee of the corporation shall not place a wager on any683
sporting event or platform;684
(2) A corporation vendor employee shall not place a wager on a sporting event using685
their employer's platform;686
(3) A licensee or principal owner, partner, member of the board of directors, officer, or687
supervisory employee of a licensee shall not place a wager on the licensee's platform;688
(4) A person that provides good or services to a licensee or any principal owner, partner,689
member of the board of directors, officer, or supervisory employee of a person that690
provides such goods or services shall not place a wager on the licensee's platform;691
(5) A contractor, subcontractor, or consultant or any officer or employee of a contractor,692
subcontractor, or consultant of a licensee shall not place a wager on the licensee's693
platform, if such individual is directly involved in the licensee's operation of sports694
betting or the processing of sports betting claims or payments through the licensee's695
platform;696
(6) An individual subject to a contract with the corporation shall not place a wager on697
any platform, if the contract contains a provision prohibiting the individual from698
participating in sports betting;699
(7) An individual with access to material nonpublic information that is known700
exclusively by an individual who is prohibited from placing a wager in this state under701
this Code section shall not use any such information to place a wager on any sporting702
event or platform;703
(8) An amateur or Olympic athlete shall not place a wager on any sporting event in704
which the athlete participates;705 23 LC 36 5535S
H. B. 380 (SUB)
- 29 -
(9) A professional athlete shall not place a wager on any sporting event overseen by such706
athlete's professional sports governing body or sporting events operator;707
(10) An owner or employee of a team, player, umpire, or sports union personnel, or708
employee, referee, coach, or official of a professional sports governing body or sporting709
events operator shall not place a wager on any sporting event, if the wager is based on a710
sporting event overseen by the individual's professional sports governing body or sporting711
events operator;712
(11) An individual having the ability to directly affect the outcome of a sporting event713
shall not place a wager on such sporting event;714
(12) A trustee or regent of a governing board of a public or private institution of higher715
education shall not place a wager on a collegiate sporting event;716
(13) An individual prohibited by the rules or regulations of a professional sports717
governing body or sporting events operator of a collegiate sports, team, league, or718
association from participating in sports betting shall not place a wager on any sporting719
event to which such prohibition applies; and720
(14) A student or an employee of a public or private institution of higher education who721
has access to material nonpublic information concerning a student athlete or a sports team722
shall be prohibited from placing a wager on a collegiate sporting event if such723
information is relevant to the outcome of such event.724
(b) The corporation may prescribe by rules and regulations additional individuals and725
categories of individuals who are prohibited from placing a wager on specified sporting726
events or online sports betting platforms in this state.727
(c) The corporation shall prescribe by rules and regulations any measures necessary to728
ensure individuals who are prohibited from placing a wager on specified sporting events729
or online sports betting platforms in this state shall not be permitted to collude with730
individuals not specifically enumerated in subsection (a) of this Code section to directly731
affect the outcome of a sporting event.732 23 LC 36 5535S
H. B. 380 (SUB)
- 30 -
(d) Any individual who places a wager in violation of this Code section:733
(1) For a first offense, shall be indefinitely prohibited from placing a wager, be required734
to forfeit the proceeds of any illegal wager, be guilty of a misdemeanor, and be fined not735
less than $500.00 nor more than $1,000.00;736
(2) For a second offense, shall be:737
(A) Required to forfeit the proceeds of any illegal wager;738
(B) Guilty of a misdemeanor; and739
(C) Fined not less than $5,000.00 or imprisoned for not less than one month nor more740
than five months, or both; and741
(3) For a third or subsequent offense, shall be:742
(A) Required to forfeit the proceeds of any illegal wager; 743
(B) Guilty of a misdemeanor of a high and aggravated nature; and744
(C) Fined not less than $7,500.00 or imprisoned for not less than three months, or both.745
50-27-163.746
(a) The corporation shall by rules and regulations prohibit betting on injuries, penalties,747
the outcome of player discipline rulings or replay reviews, and any other type or form of748
betting under this article that is contrary to public policy or unfair to bettors.749
(b)(1) A professional sports governing body or sporting events operator may submit to750
the corporation in writing, by providing notice in such form and manner as the751
corporation may require, a request to restrict, limit, or prohibit a certain type, form, or752
category of sports betting with respect to its sporting events, if the professional sports753
governing body or sporting events operator believes that such type, form, or category of754
sports betting with respect to its sporting events may undermine the integrity or perceived755
integrity of such professional sports governing body or sporting events operator or its756
sporting events. The corporation shall request comments from sports betting licensees757
and sports betting services provider licensees on all such requests it receives.758 23 LC 36 5535S
H. B. 380 (SUB)
- 31 -
(2) After giving due consideration to all comments received, the corporation shall, upon759
demonstration of good cause from the requestor that such type, form, or category of760
sports betting is likely to undermine the integrity or perceived integrity of such761
professional sports governing body or sporting events operator or its sporting events,762
grant the request. The corporation shall respond to a request concerning a particular763
sporting event before the start of the event, or if it is not feasible to respond before then,764
no later than seven days after the request is made. If the corporation determines that the765
requestor is more likely than not to prevail in successfully demonstrating good cause for766
its request, the corporation may provisionally grant the request of the professional sports767
governing body or sporting events operator until the corporation makes a final768
determination as to whether the requestor has demonstrated good cause. Absent such a769
provisional grant by the corporation, sports betting licensees may continue to offer sports770
betting on sporting events that are the subject of such a request during the pendency of771
the corporation's consideration of the applicable request.772
Part 5773
50-27-170.774
(a) Prior to placing a wager with a licensee via online sports betting, a bettor shall register775
and establish a player account with the licensee remotely and attest that the bettor meets776
the requirements to place a wager with a licensee in this state. Prior to verification of a777
bettor's identity in accordance with this Code section, a licensee shall not allow the bettor778
to engage in sports betting, make a deposit, or process a withdrawal via online sports779
betting. A licensee shall implement commercially and technologically reasonable780
procedures to prevent access to sports betting by minors on its online sports betting781
platforms. A licensee may use information obtained from third parties to verify that an782 23 LC 36 5535S
H. B. 380 (SUB)
- 32 -
individual is authorized to open an account, place wagers, and make deposits and783
withdrawals.784
(b) Each online sports betting services provider licensee shall adopt a registration policy785
to ensure that all bettors utilizing online sports betting are authorized to place a wager with786
a licensee within this state. Such policy shall include, without limitation, commercially787
reasonable mechanisms which shall:788
(1) Verify the name and age of the registrant;789
(2) Verify that the registrant is not knowingly prohibited from placing a wager under790
Code Section 50-27-162; and791
(3) Obtain the following information from the registrant:792
(A) Legal name;793
(B) Date of birth;794
(C) Physical address other than a post office box;795
(D) Phone number;796
(E) A unique username; and797
(F) An active email account.798
(c) Each online sports betting services provider licensee may in its discretion require a799
bettor to provide the licensee with a signed and notarized document attesting that the bettor800
is qualified to engage in sports betting under this article as part of the registration policy801
of the licensee.802
(d) A bettor shall not register more than one account with a licensee, and each licensee803
shall use commercially and technologically reasonable means to ensure that each bettor is804
limited to one account.805
(e) Each online sports betting services provider licensee, in addition to complying with806
state and federal law pertaining to the protection of the private, personal information of807
registered bettors, shall use all other commercially and technologically reasonable means808
to protect such information consistent with industry standards.809 23 LC 36 5535S
H. B. 380 (SUB)
- 33 -
(f) When a bettor's account is created, a bettor may fund the account through:810
(1) Electronic bank transfer of funds, including such transfers through third parties;811
(2) Debit cards;812
(3) Online and mobile payment systems that support online money transfers; and813
(4) Any other method approved by rules and regulations of the corporation.814
(g)(1) Licensees shall not allow bets to be placed until first verifying the identity of the815
bettor pursuant to this Code section and by rules promulgated by the corporation.816
Further, and pursuant to rules promulgated by the corporation, licensees shall establish817
safeguards, including, but not limited to, access notifications and similar security818
safeguards, to protect each bettor's account.819
(2) If a licensee determines that the information provided by a bettor to make a deposit820
or process a withdrawal is inaccurate or incapable of verification or violates the policies821
and procedures of the licensee, the licensee shall, within ten days, require the submission822
of additional information that can be used to verify the identity of such bettor.823
(3) If such information is not provided or does not result in verification of the bettor's824
identity, the licensee shall:825
(A) Immediately suspend the bettor's account and shall not allow the bettor to place826
wagers;827
(B) Retain any winnings attributable to the bettor;828
(C) Refund the balance of deposits made to the account to the source of such deposit829
or by issuance of a check; and830
(D) Suspend the account.831
(h) A licensee shall utilize geofencing technology to ensure that online sports betting is832
available only to bettors who are physically located in this state. Servers, including the use833
of backup servers, may be located outside of this state, consistent with federal law. To the834
extent required by federal law, a licensee shall maintain in this state the servers it uses to835
accept wagers on a sporting event placed by bettors located in this state.836 23 LC 36 5535S
H. B. 380 (SUB)
- 34 -
(i) Each online sports betting services provider licensee shall clearly and conspicuously837
display on its website a statement indicating that it is illegal for a person under 21 years of838
age to engage in sports betting in this state.839
(j) The corporation shall promulgate rules and regulations for purposes of regulating sports840
betting via online sports betting.841
50-27-171.842
(a) Licensees shall allow bettors to limit their betting activity with the licensee by, at a843
minimum, giving bettors the opportunity to place limits on the amounts deposited, the844
amounts wagered, and the amount of time spent wagering. Licensees shall take reasonable845
steps to prevent bettors from overriding their self-imposed responsible gambling limits.846
At the request of a bettor, a licensee may share the requested limitations with the847
corporation for the sole purpose of disseminating the request to other licensees.848
(b) The corporation shall promulgate rules and regulations that require a licensee to849
implement responsible sports betting programs that include comprehensive training on850
responding to circumstances in which individuals present signs of problem gambling or a851
betting or gambling disorder.852
(c) The corporation shall work with national and local organizations to provide services853
for individuals with problem gambling or a betting or gambling disorder and to establish854
prevention initiatives to reduce the number of individuals with problem gambling or a855
betting or gambling disorder, including, but not limited to, utilizing currently established856
programs for problem gambling or betting or gambling disorders.857
(d) All sports betting advertisements shall prominently display messaging designed to858
prevent problem gambling and provide information about how to access resources related859
to problem gambling, including the National Council on Problem Gambling's helpline or860
other similar toll-free helpline.861 23 LC 36 5535S
H. B. 380 (SUB)
- 35 -
(e) The corporation shall annually generate a report outlining activities with respect to862
problem gambling and betting or gambling disorders, including, but not limited to,863
descriptions of programs, grants, and other resources made available; the number of864
individuals seeking assistance; the number of individuals who reported completing865
programs and therapies; and the rate of recidivism, if known to the corporation. The866
corporation shall file the annual report with the Governor, the Lieutenant Governor, and867
the Speaker of the House of Representatives and shall publish such report on its website868
no later than January 30 of each year.869
50-27-172.870
(a) Each licensee shall adopt and adhere to a written, comprehensive policy outlining its871
rules governing the acceptance of wagers and payouts. Such policy and rules must be872
approved by the corporation prior to the acceptance of a wager by a licensee. Such policy873
and rules must be readily available to a bettor on the licensee's website.874
(b) The corporation shall promulgate rules and regulations regarding:875
(1) The manner in which a licensee accepts wagers from and issues payouts to bettors,876
including payouts in excess of $10,000.00; and877
(2) Requirements for reporting suspicious wagers.878
Part 6879
50-27-180.880
(a) Licensees are not required to use official league data or official event data for881
determining the results of:882
(1) Tier 1 sports wagers on events of any organization, whether headquartered in the883
United States or elsewhere; or884 23 LC 36 5535S
H. B. 380 (SUB)
- 36 -
(2) Tier 2 sports wagers on events of organizations that are not headquartered in the885
United States.886
(b)(1) A professional sports governing body or sporting events operator headquartered887
in the United States may notify the corporation that it desires licensees to use official888
league data or official event data for determining the results of tier 2 sports wagers on its889
sporting events. A notification under this subsection shall be made in the form and890
manner as the corporation shall require. The corporation shall notify each licensee within891
five days after receipt of such notification from a professional sports governing body or892
sporting events operator. If a professional sports governing body or sporting events893
operator does not notify the corporation of its desire to supply official league data or894
official event data, licensees are not required to use official league data or official event895
data for determining the results of any tier 2 wagers on sporting events of that896
professional sports governing body or sporting events operator.897
(2) Within 60 days after the corporation notifies each licensee as provided under898
paragraph (1) of this subsection, or within a longer period as may be agreed between such899
professional sports governing body or sporting events operator and the applicable900
licensee, each such licensee shall be required to use only official league data or official901
event data, as applicable, to determine the results of tier 2 sports wagers on sporting902
events sanctioned by such professional sports governing body or sporting events operator,903
except when:904
(A) The professional sports governing body or sporting events operator, or a designee905
thereof, is unable to provide a feed of official league data or official event data to906
determine the results of a particular type of tier 2 sports wager, in which case licensees907
may use any data source for determining the results of the applicable tier 2 sports wager908
until the data feed becomes available on commercially reasonable terms and conditions;909
or910 23 LC 36 5535S
H. B. 380 (SUB)
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(B) A licensee is able to demonstrate to the corporation that the professional sports911
governing body or sporting events operator, or a designee thereof, will not provide a912
feed of official league data or official event data to the licensee on commercially913
reasonable terms and conditions.914
(3) The following is a nonexclusive list of factors the corporation may consider in915
evaluating whether official league data or official event data is being offered on916
commercially reasonable terms and conditions for purposes of subparagraphs (A) and (B)917
of paragraph (2) of this subsection:918
(A) The availability of tier 2 official league data of a professional sports governing919
body or tier 2 official event data of a sporting events operator to a licensee from more920
than one authorized source;921
(B) Market information, including, without limitation, price and other terms and922
conditions, regarding the purchase of comparable data by licensees for the purpose of923
settling sports wagers, for use in this state or other jurisdictions;924
(C) The nature and quantity of the official league data or official event data, including,925
without limitation, its speed, accuracy, reliability, and overall quality as compared to926
comparable nonofficial data;927
(D) The quality and complexity of the process used to collect and distribute the official928
league data or official event data as compared to comparable nonofficial data;929
(E) The extent to which professional sports governing bodies or sporting events930
operators, or designees thereof, have made available to licensees the data used to settle931
the results of tier 2 sports wagers and any terms and conditions relating to the use of932
such data; and933
(F) The extent to which licensees have purchased the same or similar official league934
data or official event data on the same or similar terms, particularly in jurisdictions935
where such purchase was not required by law or was required by law but only if offered936
on commercially reasonable terms.937 23 LC 36 5535S
H. B. 380 (SUB)
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(4) Notwithstanding any provisions to the contrary in this Code section, including,938
without limitation, paragraph (2) of this subsection, while the corporation is evaluating939
whether a professional sports governing body or a sporting events operator, or the940
designee thereof, will provide a feed of official league data or official event data on941
commercially reasonable terms and conditions pursuant to paragraph (3) of this942
subsection, licensees are not required to use official league data or official event data for943
determining the results of tier 2 sports wagers.944
(5) The corporation shall make a determination under paragraph (3) of this subsection945
within 60 days after the licensee notifies the corporation that it desires to demonstrate that946
the professional sports governing body or sporting events operator, or a designee thereof,947
will not provide a feed of official league data or official event data to such licensee on948
commercially reasonable terms and conditions.949
Part 7950
50-27-190.951
Members of the corporation or designated employees thereof may, during normal business952
hours, enter the premises of any facility of a licensee, or a third party utilized by the953
licensee to operate and conduct business in accordance with this article, for the purpose of954
inspecting books and records kept as required by this article to ensure that the licensee is955
in compliance with this article or to make any other inspection of the premises necessary956
to protect the public interests of this state and its consumers.957
50-27-191.958
(a) The corporation, licensees, corporation vendors, and vendors shall use commercially959
reasonable efforts to cooperate with investigations conducted by any professional sports960
governing body, any sporting events operator, and law enforcement agencies, including,961 23 LC 36 5535S
H. B. 380 (SUB)
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but not limited to, using commercially reasonable efforts to provide or facilitate the962
provision of betting information.963
(b) Licensees shall promptly report to the corporation any information relating to:964
(1) Abnormal betting activity or patterns that may indicate a concern with the integrity965
of a sporting event; and966
(2) Conduct that corrupts the betting outcome of a sporting event for purposes of967
financial gain, including match fixing.968
(c) Licensees shall as soon as is practicable report any information relating to conduct969
described in subsection (b) of this Code section to the professional sports governing body970
or sporting events operator.971
(d) Licensees shall use commercially reasonable efforts to maintain, in real time and at the972
account level, anonymized information regarding a bettor; the amount and type of bet; the973
time the bet was placed; the location of the bet, including the internet protocol address if974
applicable; the outcome of the bet; and records of abnormal betting activity for three years975
after the sporting event occurs. The corporation may request such information in the form976
and manner required by rules and regulations of the corporation. For purposes of this977
subsection, the term 'real time' means on a commercially reasonable periodic interval.978
(e) All records, documents, and information received by the corporation pursuant to this979
Code section shall be considered investigative records of a law enforcement agency, shall980
not be subject to Article 4 of Chapter 18 of this title, and shall not be released under any981
condition without the permission of the person providing such records, documents, or982
information.983
(f) Nothing in this Code section shall require a sports betting licensee to provide any984
information that is prohibited by federal, state, or local laws or rules and regulations,985
including, without limitation, laws and rules and regulations relating to privacy and986
personally identifiable information.987 23 LC 36 5535S
H. B. 380 (SUB)
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(g) If a professional sports governing body or sporting events operator has notified the988
corporation that access to the information described in subsection (d) of this Code section989
for wagers placed on its sporting events is necessary to monitor the integrity of its sporting990
events and represents to the corporation that it specifically uses such data for the purpose991
of monitoring the integrity of sporting events of such professional sports governing body992
or sporting events operator, then licensees shall share, in a commercially reasonable993
frequency, form, and manner, with the professional sports governing body or sporting994
events operator, or a designee thereof, the same information the licensee is required to995
maintain under subsection (d) of this Code section with respect to sports wagers on such996
a body's or operator's sporting events. A professional sports governing body or sporting997
events operator, or a designee thereof, shall use information received under this subsection998
for integrity-monitoring purposes only and shall not use such information for commercial999
or any other purposes. Nothing in this subsection shall require a licensee to provide any1000
information that is prohibited by federal, state, or local laws, rules, or regulations,1001
including, but not limited to, laws, rules, or regulations relating to privacy and personally1002
identifiable information.1003
50-27-192.1004
The corporation shall assist in any investigations by law enforcement to determine whether:1005
(1) A licensee is accepting wagers from minors or other persons ineligible to place1006
wagers in this state; and1007
(2) An individual is unlawfully accepting wagers from another individual without a1008
license or at a location in violation of this article.1009
50-27-193.1010
(a) The corporation may investigate and conduct a hearing with respect to a licensee upon1011
information and belief that the licensee has violated this article or upon the receipt of a1012 23 LC 36 5535S
H. B. 380 (SUB)
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credible complaint from any person that a licensee has violated this article. The1013
corporation shall conduct investigations and hearings in accordance with rules and1014
regulations adopted by the corporation.1015
(b) If the corporation determines that a licensee has violated any provision of this article1016
or any rules and regulations of the corporation, the corporation may suspend, revoke, or1017
refuse to renew a license; impose an administrative fine not to exceed $25,000.00 per1018
violation; or both.1019
(c) The corporation shall promulgate rules and regulations establishing a schedule of1020
administrative fines that may be assessed in accordance with subsection (b) of this Code1021
section for each violation of this article; provided, however, if the corporation finds that:1022
(1) A licensee is accepting wagers from minors or other persons ineligible to place1023
wagers in this state, the corporation shall impose a fine against the licensee as follows:1024
(A) For a first offense, $1,000.00;1025
(B) For a second offense, $2,000.00; and1026
(C) For a third or subsequent offense, $5,000.00; or1027
(2) An individual is unlawfully accepting wagers from another individual without a1028
license, the corporation shall impose a fine against the individual as follows:1029
(A) For a first offense, $10,000.00;1030
(B) For a second offense, $15,000.00; and1031
(C) For a third or subsequent offense, $25,000.00.1032
(d) The corporation may refer conduct that it reasonably believes is a violation of Article 21033
of Chapter 12 of Title 16 to the appropriate law enforcement agency.1034
50-27-194.1035
(a) Any person that violates any provisions of this article shall be liable for a civil penalty1036
of not more than $5,000.00 per violation, not to exceed $50,000.00 for violations arising1037 23 LC 36 5535S
H. B. 380 (SUB)
- 42 -
out of the same transaction or occurrence, which shall accrue to the corporation and may1038
be recovered in a civil action brought by or on behalf of the corporation.1039
(b) The corporation may seek and obtain an injunction in a court of competent jurisdiction1040
for purposes of enforcing this article.1041
(c) Costs shall not be taxed against the corporation or this state for actions brought under1042
this article.1043
50-27-195.1044
(a) Fines assessed under this article shall be accounted for separately for use by the1045
corporation in a manner consistent with rules and regulations of the corporation.1046
(b) The corporation may issue subpoenas to compel the attendance of witnesses and the1047
production of relevant books, accounts, records, and documents for purposes of carrying1048
out its duties under this article.1049
50-27-196.1050
(a) A licensee or other individual aggrieved by a final decision or action of the corporation1051
may appeal such decision or action to the Superior Court of Fulton County.1052
(b) The Superior Court of Fulton County shall hear appeals from decisions or actions of1053
the corporation and, based upon the record of the proceedings before the corporation, may1054
reverse the decision or action of the corporation only if the appellant proves the decision1055
or action to be:1056
(1) Clearly erroneous;1057
(2) Arbitrary and capricious;1058
(3) Procured by fraud;1059
(4) A result of substantial misconduct by the corporation; or1060
(5) Contrary to the United States Constitution, the Constitution of Georgia, or this article.1061 23 LC 36 5535S
H. B. 380 (SUB)
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(c) The Superior Court of Fulton County may remand an appeal to the corporation to1062
conduct further hearings.1063
50-27-197.1064
(a) It shall be unlawful for any person, directly or indirectly, to knowingly receive, supply,1065
broadcast, display, or otherwise transmit material nonpublic information for the purpose1066
of betting on a sporting event or influencing another individual's or entity's wager on a1067
sporting event.1068
(b) This Code section shall not apply to the dissemination of public information as news,1069
entertainment, or advertising.1070
(c) Any person in violation of this Code section shall be indefinitely prohibited from1071
placing a wager, be required to forfeit the proceeds of any illegal wager, and be guilty of1072
a misdemeanor."1073
PART III1074
SECTION 3-1.1075
Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated,1076
relating to gambling, is amended by revising paragraph (1) of Code Section 16-12-20,1077
relating to definitions, as follows:1078
"(1) 'Bet' means an agreement that, dependent upon chance even though accompanied1079
by some skill, one stands to win or lose something of value. A bet does not include:1080
(A) Contracts of indemnity or guaranty or life, health, property, or accident insurance;1081
or1082
(B) An offer of a prize, award, or compensation to the actual contestants in any bona1083
fide contest for the determination of skill, speed, strength, or endurance or to the owners1084
of animals, vehicles, watercraft, or aircraft entered in such contest; or1085 23 LC 36 5535S
H. B. 380 (SUB)
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(C) Any consideration paid to a person licensed by the Georgia Lottery Corporation1086
under Article 4 of Chapter 27 of Title 50 or an employee, agent, or other person acting1087
in furtherance of his or her employment by such licensee on the partial or final result1088
of or performance during any professional or intercollegiate sporting event, contest, or1089
exhibition that had not begun at the time the consideration was paid."1090
SECTION 3-2.1091
Said part is further amended by revising Code Section 16-12-27, relating to advertisement1092
or solicitation for participation in lotteries, as follows:1093
"16-12-27.1094
(a) It shall be unlawful for any person, partnership, firm, corporation, or other entity to1095
sell, distribute, televise, broadcast, or disseminate any advertisement, television or radio1096
commercial, or any book, magazine, periodical, newspaper, or other written or printed1097
matter containing an advertisement or solicitation for participation in any lottery declared1098
to be unlawful by the laws of this state unless such advertisement, commercial, or1099
solicitation contains or includes the words 'void in Georgia' printed or spoken so as to be1100
clearly legible or audible to persons viewing or hearing such advertisement, commercial,1101
or solicitation.1102
(b) Any person, partnership, firm, corporation, or other entity violating subsection (a) of1103
this Code section shall be guilty of a misdemeanor.1104
(c) This Code section shall not apply to any advertisement or solicitation for participation1105
in a lottery game of online sports betting by any person licensed by the Georgia Lottery1106
Corporation under Article 4 of Chapter 27 of Title 50 that is concerning such licensee's1107
lawful activities."1108 23 LC 36 5535S
H. B. 380 (SUB)
- 45 -
SECTION 3-3.1109
Said part is further amended by revising Code Section 16-12-28, relating to communicating1110
gambling information, as follows:1111
"16-12-28.1112
(a) A person who knowingly communicates information as to bets, betting odds, or1113
changes in betting odds or who knowingly installs or maintains equipment for the1114
transmission or receipt of such information with the intent to further gambling commits the1115
offense of communicating gambling information.1116
(b) A person who commits the offense of communicating gambling information, upon1117
conviction thereof, shall be punished by imprisonment for not less than one nor more than1118
five years or by a fine not to exceed $5,000.00, or both.1119
(c) This Code section shall not apply to the activities of a person licensed by the Georgia1120
Lottery Corporation under Article 4 of Chapter 27 of Title 50 or an employee, agent, or1121
other person acting in furtherance of his or her employment by such licensee."1122
PART IV1123
SECTION 4-1.1124
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is1125
amended by revising paragraph (55) of Code Section 48-8-3, relating to exemptions from1126
state sales and use tax, as follows:1127
"(55) The sale of lottery tickets authorized by Chapter 27 of Title 50 or wagers1128
authorized by Article 4 of Chapter 27 of Title 50;"1129 23 LC 36 5535S
H. B. 380 (SUB)
- 46 -
PART V1130
SECTION 5-1.1131
This Act shall become effective upon its approval by the Governor or upon its becoming law1132
without such approval.1133
SECTION 5-2.1134
All laws and parts of laws in conflict with this Act are repealed.1135