Georgia Senate Bill SB386 Latest Draft

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The House Committee on Higher Education offers the following substitute to SB 386:
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 increase funding to the state's Pre-K programs; to provide for the5
corporation to engage in certain activities related to sports betting; to provide for a short title;6
to provide for legislative findings; to provide for definitions; to provide for the corporation's7
powers and duties relative to sports betting; to provide for the procedures, limitations,8
requirements, and qualifications of the licensing of any person offering, operating, or9
managing sports betting in this state; to provide for rules and regulations promulgated by the10
corporation; to provide for a privilege tax; to require certain reports; to regulate wagers and11
provide requirements for bettors; to provide for bettors to restrict themselves from placing12
certain wagers; to provide certain resources for individuals with problem gambling or a13
betting or gambling disorder; to provide for the collection and disposition of fees and fines;14
to prohibit certain conduct by the corporation, employees of the corporation, licensees, and15
other persons; to provide for certain penalties; to provide for construction; to amend Part 116
of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to17
gambling, so as to exclude any consideration paid to a sports betting licensee from the18
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definition of "bet"; to provide for the exemption of persons licensed for online sports betting19
from regulations and restrictions regarding gambling information; to amend Title 48 of the20
Official Code of Georgia Annotated, relating to revenue and taxation, so as to exempt wagers21
placed as part of sports betting; to provide for related matters; to provide for a contingent22
effective date and automatic repeal; to repeal conflicting 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 50-27-9, relating to general powers of the Georgia Lottery Corporation, by28
revising paragraphs (18) and (19) of subsection (a) and adding a new paragraph to read as29
follows:30
"(18)  To act as a retailer, to conduct promotions which involve the dispensing of lottery31
tickets or shares, and to establish and operate a sales facility to sell lottery tickets or32
shares and any related merchandise; and33
(19)  To perform any actions and carry out any responsibilities provided for in Article 434
of this chapter; and35
(19)(20) To adopt and amend such regulations, policies, and procedures as necessary to36
carry out and implement its powers and duties, organize and operate the corporation,37
regulate the conduct of lottery games in general, and any other matters necessary or38
desirable for the efficient and effective operation of the lottery or the convenience of the39
public.  The promulgation of any such regulations, policies, and procedures shall be40
exempt from the requirements of Chapter 13 of this title, the 'Georgia Administrative41
Procedure Act.'"42
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SECTION 1-2.43
Said title is further amended in Code Section 50-27-13, relating to disposition of lottery44
proceeds, budget report by Governor, appropriations by General Assembly, and shortfall45
reserve subaccount, by revising paragraph (3) of subsection (b) as follows:46
"(3)(A)  Beginning in Fiscal Year 2025, a A shortfall reserve shall be maintained within47
the Lottery for Education Account in an amount equal to at least the greater of 5048
percent of the average amount of the appropriations from such account for the49
preceding three fiscal years or 10 percent of net proceeds deposited into such account50
for the preceding fiscal year, with such amount hereinafter being referred to as the51
minimum reserve.  Beginning in Fiscal Year 2025 and for each fiscal year thereafter,52
if on the last day of the preceding fiscal year the total reserve fund balance exceeds the53
minimum reserve, an amount equal to 10 percent of the excess reserve funds, meaning54
the amount that the total reserve fund balance exceeds the minimum reserve, shall be55
appropriated for educational purposes and programs.56
(B) If the net proceeds paid into the Lottery for Education Account in any year are not57
sufficient to meet the amount appropriated for education educational purposes and58
programs, the shortfall reserve may be drawn upon to meet the deficiency and any59
amount so drawn may count for purposes of appropriations in subparagraph (A) of this60
paragraph.61
(C)  If In the event the shortfall reserve is drawn upon and falls below the greater of 5062
percent of the average amount of the appropriations from of net proceeds deposited into63
such account for the preceding three fiscal year years or 10 percent of the net proceeds64
deposited into such account for the preceding fiscal year, the shortfall reserve shall be65
replenished to the level required by subparagraph (A) of this paragraph in the next66
fiscal year and the lottery-funded lottery funded programs shall be reviewed and67
adjusted accordingly."68
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PART II69
SECTION 2-1.70
Said title is further amended by adding a new article to Chapter 27, relating to the "Georgia71
Lottery for Education Act," to read as follows:72
"ARTICLE 473
Part 174
50-27-120.75
This article shall be known and may be cited as the 'Georgia Sports Betting Act.'76
50-27-121.77
The General Assembly finds that:78
(1)  Sports betting shall be overseen and regulated, and may also be offered, by the79
Georgia Lottery Corporation in a manner that provides continuing entertainment to the80
public, maximizes revenues, protects consumers, and ensures that sports betting is81
operated in this state with integrity and dignity and free of political influence;82
(2)  The corporation shall be accountable to the General Assembly and to the public for83
the management and oversight of sports betting in this state through a system of audits84
and reports;85
(3)  The ability to offer sports betting in this state under a license issued in accordance86
with this article constitutes a taxable privilege and not a right;87
(4)  Net proceeds of sports betting conducted pursuant to this article shall be used for the88
purposes authorized by Article I, Section II, Paragraph VIII of the Constitution; and89
(5)  In accordance with Code Section 50-27-2, sports betting shall be conducted in a90
manner so as to safeguard the fiscal soundness of the state, to enhance public welfare, and91
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to support the funding authorized by Article I, Section II, Paragraph VIII(c) of the92
Constitution.93
50-27-122.94
As used in this article, the term:95
(1)  'Adjusted gross income' means the total of all moneys paid to a licensee as wagers96
minus federal excise taxes and minus the total amount paid out to winning bettors,97
including the cash value of merchandise awarded as winnings.98
(2)  'Applicant' means any person that applies for a license under this article.99
(3)  'Bettor' means an individual who is:100
(A)  Physically present in this state when placing a wager with a licensee;101
(B)  Twenty-one years of age or older; and102
(C)  Not prohibited from placing a wager or bet under Code Section 50-27-162.103
(4)  'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves104
to account for losses suffered by a licensee and owed to bettors.105
(5)  'Cheating' means improving the chances of winning or altering the outcome through106
deception, interference, or manipulation of a sporting event or of any equipment,107
including software, pertaining to or used in relation to the equipment used for or in108
connection with the sporting event on which wagers are placed or invited.  Such term109
shall include match fixing and attempts and conspiracy to cheat.110
(6)  'Collegiate sporting event' means a sporting or athletic event involving a sports or111
athletic team of a public or private institution of higher education.112
(7)  'Esports event' means an organized video game competition between players who113
play individually or as teams.114
(8)  'Fantasy or simulated contest' means a game or event in which one or more players115
compete based on winning outcomes that reflect the relative knowledge and skill of the116
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players and are determined predominately by accumulated statistical results of the117
performance of individuals, including, but not limited to, athletes in sporting events.118
(9)  'Fixed-odds betting' means bets made at predetermined odds or on the spread where119
the return to the bettor is unaffected by any later change in odds or the spread.120
(10)  'Futures wager' means a wager made on the occurrence of an event in the future121
relating to a sporting event.122
(11)  'Institutional investor' means:123
(A)  A retirement fund administered by a public agency for the exclusive benefit of124
federal, state, or local public employees;125
(B)  An investment company registered under the Investment Company Act of 1940;126
(C)  A chartered or licensed life insurance company or property and casualty insurance127
company;128
(D)  A banking and other chartered or licensed lending institution;129
(E)  An investment advisor registered under the Investment Advisers Act of 1940; or130
(F) A pension investment board.131
(12)  'License' means any of the licenses issued by the corporation under this article.132
(13)  'Licensee' means a person that holds a license issued by the corporation under this133
article.134
(14)  'Master sports betting licensee' means the Georgia Lottery Corporation.135
(15)  'Material nonpublic information' means information that has not been disseminated136
publicly concerning an athlete, contestant, prospective contestant, or athletic team,137
including, without limitation, confidential information related to medical conditions or138
treatment, physical or mental health or conditioning, physical therapy or recovery,139
discipline, sanctions, academic status, education records, eligibility, playbooks, signals,140
schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or141
recordings of practices or other athletic activities.142
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(16)  'Merchandise' means any goods or services provided to bettors free of charge, at a143
discounted rate, or in the form of a rebate or credit.144
(17)  'Minor' means an individual who is less than 21 years of age.145
(18)  'Moneyline wager' means the fixed odds in relation to a dollar amount that a team146
or person participating in a sporting event will win outright regardless of the spread.147
(19)  'Official event data' means statistics, results, outcomes, and other data related to a148
sporting event obtained pursuant to an agreement with the relevant sporting events149
operator whose corporate headquarters is based in the United States or an entity expressly150
authorized by such sporting events operator to provide such information to licensees for151
purposes of determining the outcome of tier 2 sports wagers on such sporting event.152
(20)  'Official league data' means statistics, results, outcomes, and other data related to153
a sporting event obtained pursuant to an agreement with the relevant professional sports154
governing body whose corporate headquarters is based in the United States or an entity155
expressly authorized by such professional sports governing body to provide such156
information to licensees for purposes of determining the outcome of tier 2 sports wagers.157
(21)  'Online sports betting' means a wager on a sporting event that is placed via the158
internet through any electronic device and accepted through an online sports betting159
platform.160
(22)  'Online sports betting platform' means the combination of hardware, software, and161
data networks used to manage, administer, or control online sports betting and any162
associated wagers accessible by any electronic means.163
(23)  'Online sports betting services provider' means a person that contracts with the164
master sports betting licensee or a Type 1 sports betting licensee under Code Section165
50-27-133 to operate online sports betting on behalf of such licensee and that is licensed166
by the corporation.167
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(24)  'Over/under wager' means a single wager that predicts whether the combined score168
of the two persons or teams engaged in a sporting event will be lower or higher than a169
predetermined number.170
(25)  'Parlay wager' means a single wager that incorporates two or more individual bets171
for purposes of earning a higher payout if each bet incorporated within the wager wins.172
(26)  'Person' means an individual or entity.173
(27)  'Principal owner' means a person that owns an interest of 10 percent or more of the174
entity.175
(28)  'Professional sporting event' means an athletic or sporting event involving at least176
two competitors who have the opportunity to receive compensation for participating in177
such event.178
(29)  'Professional sports governing body' means the organization, league, or association179
whose corporate headquarters is based in the United States that oversees a sport and180
prescribes final rules and enforces codes of conduct with respect to such sport and181
participants therein.182
(30)  'Professional sports team' means a major league professional team:183
(A)  Based in this state;184
(B)  That plays baseball, football, men's basketball, soccer, or women's basketball; and185
(C)  Whose regular season games have had the highest attendance for its respective186
professional sport in the state during the past five years.187
(31)  'Proposition wager' means a wager on a single specific action, statistic, occurrence,188
or nonoccurrence to be determined during a sporting event and includes any such action,189
statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of190
the sporting event to which it relates.191
(32)  'Relative' means a spouse, father, mother, son, daughter, grandfather, grandmother,192
brother, sister, uncle, aunt, cousin, nephew, niece, father-in-law, mother-in-law,193
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son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,194
stepson, stepdaughter, stepbrother, stepsister, half-brother, or half-sister.195
(33)  'Sporting event' means any:196
(A) Professional sporting or professional athletic event, including motor sports197
sanctioned by a national or international organization or association;198
(B)  Collegiate sporting event;199
(C)  Olympic sporting or athletic event;200
(D)  Sporting or athletic event sanctioned by a national or international organization or201
association;202
(E)  Sporting or athletic event conducted or organized by a sporting events operator;203
(F)  Esports event; or204
(G)  Other event authorized by the corporation.205
Such term shall not include a nonprofessional, noncollegiate, or non-Olympic sporting206
or athletic event if the majority of the participants are under the age of 18 years and shall207
not include any Special Olympics sporting or athletic event.208
(34)  'Sporting events operator' means a person that conducts or organizes a sporting209
event for athletes or other participants that is not held or sanctioned as an official sporting210
event of a professional sports governing body.211
(35)  'Sports betting' means online sports betting.212
(36)  'Sports betting equipment' means any of the following that is directly used in213
connection with the operation of sports betting:214
(A)  Any mechanical, electronic, or other device, mechanism, or equipment;215
(B)  Any software, application, components, or other goods; or216
(C)  Anything to be installed or used on a personal electronic device.217
(37)(A)  'Sports betting supplier' means a person that provides sports betting equipment218
necessary for the creation of sports betting markets and the determination of bet219
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outcomes, directly to any licensee involved in the acceptance of bets, including any of220
the following:221
(i)  Providers of data feeds and odds services;222
(ii)  Platform providers;223
(iii)  Risk management providers:224
(iv)  Integrity monitoring providers; and225
(v) Other providers of sports betting supplier services as determined by the226
corporation.227
(B)  Such term shall not include a professional sports governing body that:228
(i)  Provides official league data concerning its own sporting event to a sports betting229
licensee solely on that basis; or230
(ii)  Provides raw statistical match data to one or more designated and licensed231
suppliers of data feeds and odds services solely on that basis.232
(38)  'Spread' means the predicted scoring differential between two persons or teams233
engaged in a sporting event.234
(39)  'Supervisory employee' means a principal owner or employee having the authority235
to act on behalf of a licensee whose judgment is relied upon to manage and advance the236
sports betting business operations of a licensee.237
(40)  'Tier 1 sports wager' means a sports wager that is determined solely by the final238
score or final outcome of the sporting event and is placed before the sporting event has239
begun.240
(41)  'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.241
(42)  'Type 1 eligible entity' means any of the following:242
(A)  Any professional sports team;243
(B)  A professional sports governing body that holds one or more sanctioned annual244
golf tournaments on a national tour of professional golf in this state, and has held one245
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or more of the same or different sanctioned annual golf tournaments on a national tour246
of professional golf in this state for at least 30 years;247
(C)  The owner of a facility in this state that has held an annual invitational golf248
tournament for professional and amateur golfers for at least 30 years;249
(D)  The owner of a facility located in this state that hosts automobile races on a250
national association for stock car racing national tour or a wholly owned for-profit251
subsidiary of the owner of such a facility, if the owner is a nonprofit corporation or252
nonprofit organization; and253
(E)  The Georgia Lottery Corporation.254
(43)  'Type 1 sports betting licensee' means the master sports betting licensee, an online255
sports betting services provider awarded a Type 1 license via the public procurement256
process by the master sports betting licensee, or a Type 1 eligible entity licensed or257
authorized by the corporation to directly or indirectly offer online sports betting.258
(44)  'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown259
outcome of one or more sporting events or portions of sporting events.  Such term shall260
include single-game wagers, futures wagers, tier 1 or tier 2 wagers, teaser wagers, parlay261
wagers, over/under wagers, moneyline wagers, pools, exchange wagering, in-game262
wagering, in-play wagers, proposition wagers, straight wagers, fixed-odds betting, and263
any other bet or wager approved by the corporation.  Such term shall not include a264
pari-mutuel bet or wager or an entry fee paid to participate in a fantasy or simulated265
contest.266
50-27-123.267
(a)  The corporation shall have all powers and duties necessary to carry out the provisions268
of this article and to exercise the control of sports betting in this state as authorized by this269
article.  Such powers and duties shall include, but shall not be limited to, the following:270
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(1)  To have jurisdiction, supervision, and regulatory authority over sports betting,271
including, but not limited to, regulation, licensure, and offering of sports betting on272
mobile applications available state wide via the internet and through a limited number of273
licenses to be awarded to Type 1 sports betting licensees;274
(2)  To appoint and employ such persons as the corporation deems essential to perform275
its duties under this article and to ensure that such sports betting is conducted with order276
and the highest integrity.  Such employees shall possess such authority and perform such277
duties as the corporation shall prescribe or delegate to them.  Such employees shall be278
compensated as provided by the corporation;279
(3)  To enter upon, investigate, and have free access to all places of business of any280
licensee under this article and to compel the production of any books, ledgers, documents,281
records, memoranda, or other information of any licensee to ensure such licensee's282
compliance with the rules and regulations promulgated by the corporation pursuant to this283
article;284
(4)  To promulgate any rules and regulations as the corporation deems necessary and285
proper to administer the provisions of this article; provided, however, that the initial rules286
and regulations governing sports betting shall be promulgated, provided for a period of287
public comment, and adopted by the corporation within 90 days of the effective date of288
this article.  Such initial rules and regulations and all other rules and regulations of the289
corporation promulgated and adopted pursuant to this article shall not be subject to290
Chapter 13 of this title, the 'Georgia Administrative Procedure Act';291
(5)  To issue subpoenas for the attendance of witnesses before the corporation, administer292
oaths, and compel production of records or other documents and testimony of witnesses293
whenever, in the judgment of the corporation, it is necessary to do so for the effectual294
discharge of the duties of the corporation under this article;295
(6)  To compel any person licensed by the corporation to file with the corporation such296
data, documents, and information as shall appear to the corporation to be necessary for297
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the performance of the duties of the corporation under this article, including, but not298
limited to, financial statements and information relative to stockholders and all others299
with a pecuniary interest in such person;300
(7)  To prescribe the manner in which books and records of persons licensed or permitted301
by the corporation under this article shall be kept;302
(8) To enter into arrangements with any foreign or domestic government or303
governmental agency for the purposes of exchanging information or performing any other304
act to better ensure the proper conduct of betting under this article;305
(9)  To order such audits, in addition to those otherwise required by this article, as the306
corporation deems necessary and desirable;307
(10)  Upon the receipt of a complaint of an alleged criminal violation of this article, to308
immediately report such complaint to the appropriate law enforcement agency with309
jurisdiction to investigate criminal activity;310
(11)  To provide for the reporting of the applicable amount of state and federal income311
tax of persons claiming a prize or payoff for a winning wager under this article;312
(12)  To establish and administer programs for providing assistance to individuals with313
problem gambling or a betting or gambling disorder, including, but not limited to:314
(A)  Educating potential gamblers of methods and types of bets and fairly informing315
potential gamblers of the odds or likelihood of winning such bets;316
(B)  Establishing and administering programs for educating potential gamblers about317
responsible gambling, the warning signs of problem gambling or betting or gambling318
disorders and how to prevent and treat problem gambling or betting or gambling319
disorders;320
(C)  Developing and funding responsible gaming education campaigns coupled with321
prevention and education efforts within communities that raise awareness of potential322
signs or risk factors of problem gambling or betting or gambling disorders;323
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(D)  Encouraging the use of harm-minimizing measures by bettors, such as excluding324
or limiting oneself from obtaining credit extensions, making credit card or cashless325
payments, cashing checks, and making automated teller machine withdrawals, as well326
as utilizing limit-setting tools and personal data and information to make informed327
decisions about gambling;328
(E)  Promulgating rules and regulations that enable bettors to self-limit with a licensee329
and self-exclude from sports betting activities state wide.  Any such rules or regulations330
related to self-exclusion shall require the individual seeking self-exclusion to provide331
identifying information, including, at a minimum, full name, address, date of birth, and332
social security number;333
(F) Adopting processes for individuals to express concerns related to problem334
gambling or betting or gambling disorders to the corporation;335
(G)  Developing state-wide advertising guidelines to ensure that the marketing of sports336
betting is not targeted to minors and does not include content, themes, and promotions337
that have special appeal to individuals with problem gambling or a betting or gambling338
disorder;339
(H)  Requiring the electronic posting of signs or notifications on online sports betting340
platforms that bear the 1-800-GAMBLER toll-free number, which provides or directs341
callers to assistance and resources for individuals with problem gambling or a betting342
or gambling disorder; and343
(I)  Requiring, through the promulgation of rules and regulations, limitations on the344
amount of bets a bettor can place when such bettor has exhibited signs of problem345
gambling or a betting or gambling disorder.  Such rules and regulations shall require346
the implementation of systems to monitor betting and provide customers with guidance,347
information, and options when their betting may be problematic;348
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(13)  To keep a true and full record of all proceedings of the corporation under this article349
and preserve at the corporation's general office all books, documents, and papers of the350
corporation;351
(14)  To adopt rules and regulations specific to the manner in which a licensee may352
advertise its business operations as authorized by this article; and353
(15)  To comply with Code Section 50-27-14 as it relates to sports betting in order to354
encourage participation by minority businesses.355
(b)  The corporation shall not have the power to prescribe a licensee's maximum or356
minimum payout or hold percentage.357
50-27-124.358
(a)  The corporation shall prescribe by rules and regulations:359
(1)  The reserves that must be kept by licensees to comply with subparagraph (c)(7)(A)360
of Code Section 50-27-130 to pay off bettors;361
(2)  Any insurance requirements for a licensee;362
(3)  Minimum requirements by which each licensee shall exercise effective control over363
its internal fiscal affairs, including, without limitation, requirements for:364
(A)  Safeguarding assets and revenues, including evidence of indebtedness;365
(B)  Maintaining reliable records relating to accounts, transactions, profits and losses,366
operations, and events; and367
(C)  Global risk management;368
(4)  Requirements for internal and independent audits of licensees;369
(5)  The manner in which periodic financial reports shall be submitted to the corporation370
from each licensee, including the financial information to be included in the reports;371
(6) The type of information deemed to be confidential financial or proprietary372
information that is not subject to any reporting requirements under this article;373
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(7)  Policies, procedures, and processes designed to mitigate the risk of cheating and374
money laundering; and375
(8)  Any post-employment restrictions necessary to maintain the integrity of sports376
betting in this state.377
Part 2378
50-27-130.379
(a)  Any person offering, operating, or managing sports betting in this state shall be380
licensed by the corporation.381
(b)  The corporation shall issue licenses to qualified applicants able to meet the duties of382
a license holder under this article and that the corporation determines will best satisfy the383
following criteria:384
(1)  Expertise in the business of online sports betting;385
(2)  Integrity, sustainability, and safety of the online sports betting platform;386
(3)  Past relevant experience of the applicant;387
(4)  Advertising and promotional plans to increase and sustain revenue;388
(5)  The amount of adjusted gross income and associated tax revenue that an applicant389
is projected to generate;390
(6)  Demonstrated commitment to and plans for the promotion of responsible gaming;391
and392
(7)  Capacity to increase the number of bettors on the applicant's platform.393
(c)  An applicant for a license shall submit an application on a form in such manner and in394
accordance with such requirements as may be prescribed by rules and regulations of the395
corporation.  Such rules and regulations shall require, at a minimum, that the application396
include the following:397
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(1)  If the applicant is an entity, identification of the applicant's principal owners, board398
of directors, officers, and supervisory employees;399
(2)  Information, documentation, and assurances as may be required by the corporation400
to establish by clear and convincing evidence the applicant's good character, honesty, and401
integrity, including, but not limited to, information pertaining to family, habits, character,402
reputation, criminal and arrest records, business activities, financial affairs, and business,403
professional, and personal associates, covering at least the ten-year period immediately404
preceding the filing of the application.  No license shall be issued to an applicant, if such405
applicant or a principal owner of such applicant, has been convicted of, has been found406
guilty of, or has pled guilty to, regardless of adjudication and in any jurisdiction, any407
felony or any misdemeanor that is directly related to gambling, dishonesty, theft, or fraud;408
(3)  Notice and a description of civil judgments obtained against the applicant pertaining409
to antitrust or security regulation laws of the federal government, this state, or any other410
state, jurisdiction, province, or country;411
(4)  To the extent available, letters of reference or the equivalent from law enforcement412
agencies having jurisdiction of the applicant's place of residence and principal place of413
business.  Each such letter of reference shall indicate that the law enforcement agency414
does not have any pertinent information concerning the applicant or, if such law415
enforcement agency does have information pertaining to the applicant, shall provide such416
information, to the extent permitted by law;417
(5)  If the applicant has conducted sports betting operations in another jurisdiction, a418
letter of reference from the regulatory body that governs sports betting that specifies the419
standing of the applicant with such regulatory body; provided, however, that, if no such420
letter is received within 60 days of the request therefor, the applicant may submit a421
statement under oath that the applicant is or was, during the period such activities were422
conducted, in good standing with the regulatory body;423
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(6)  Information, documentation, and assurances concerning financial background and424
resources as may be required to establish by clear and convincing evidence the financial425
stability, integrity, and responsibility of the applicant, including, but not limited to, bank426
references, business and personal income and disbursement schedules, tax returns and427
other reports filed with governmental agencies, and business and personal accounting and428
check records and ledgers.  Each applicant shall, in writing, authorize the examination of429
all bank accounts and records as may be deemed necessary by the corporation.  The430
corporation may consider any relevant evidence of financial stability.  In addition, the431
applicant shall:432
(A)  Maintain a reserve of not less than $500,000.00 or the amount required to cover433
the outstanding liabilities for wagers accepted by the licensee, whichever is greater. 434
Outstanding liabilities for wagers shall mean the sum of patron account balances, the435
amount paid by patrons for wagers that have not yet been determined, and the amount436
owed but unpaid by licensees to patrons for wagers whose results have been437
determined.  The reserve may take the form of a bond, an irrevocable letter of credit,438
payment processor reserves and receivables, cash or cash equivalents segregated from439
operational funds, guaranty letter, or a combination thereof.  Such reserve shall be440
adequate to pay winning wagers to bettors when due.  An applicant is presumed to have441
met this standard if the applicant maintains, on a daily basis, subject to when banks are442
open, a minimum reserve in an amount which is at least equal to the average daily443
minimum reserve, calculated on a monthly basis, for the corresponding month in the444
previous year;445
(B)  Meet ongoing operating expenses which are essential to the maintenance of446
continuous and stable sports betting operations; and447
(C)  Pay, as and when due, all state and federal taxes;448
(7)  Information, documentation, and assurances as may be required to establish by clear449
and convincing evidence that the applicant has sufficient business ability and sports450
S. B. 386 (SUB)
- 18 - 24 LC 36 5897S
betting experience to establish the likelihood of the creation and maintenance of451
successful, efficient sports betting operations in this state;452
(8)  Information, as required by rules and regulations of the corporation, regarding the453
financial standing of the applicant;454
(9)  A nonrefundable application fee and annual licensing fee as follows:455
(A) Applicants for a Type 1 sports betting license shall pay a nonrefundable456
application fee in the amount of $100,000.00 and an annual licensing fee in the amount457
of $1 million;458
(B)  Applicants for an online sports betting services provider license shall pay a459
nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee460
of $100,000.00; provided, however, that an online sports betting services provider that461
applies for and obtains a Type 1 sports betting license pursuant to paragraph (3) of462
subsection (b) of Code Section 50-27-133 shall only be required to pay the463
nonrefundable application fee and annual licensing fee applicable to the applicant's464
Type 1 sports betting license; and465
(C) Applicants for a sports betting supplier license shall pay a nonrefundable466
application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;467
and468
(10) Any additional information, documents, or assurances required by rules and469
regulations of the corporation.470
(d)  The corporation shall review and approve or deny an application for a license not more471
than 90 days after receipt of an application.472
50-27-131.473
(a)  A licensee may renew its license by submitting an application on a form in such474
manner and in accordance with such requirements as may be prescribed by rules and475
regulations of the corporation.  A licensee shall submit the nonrefundable application fee476
S. B. 386 (SUB)
- 19 - 24 LC 36 5897S
prescribed under paragraph (10) of subsection (c) of Code Section 50-27-130 with its477
application for license renewal.478
(b)  For each application for licensure or renewal of a license approved under this Code479
section, the amount of the application fee shall be credited toward the licensee's annual480
licensing fee and the licensee shall remit the balance of the annual license fee to the481
corporation upon approval of a license.482
(c)  Each licensee shall have a continuing duty to promptly inform the corporation of any483
change in status relating to any information that may disqualify the licensee from holding484
a license under Code Section 50-27-132.485
(d)  A professional sports governing body and a Type 1 eligible entity may enter into486
commercial agreements with an online sports betting services provider or other entities that487
provide for such professional sports governing body and Type 1 eligible entity to share in488
the amounts wagered or revenue derived from wagers on the sporting events of such489
professional sports governing body and Type 1 eligible entity. A professional sports490
governing body and a Type 1 eligible entity shall not be required to obtain any approval491
or other form of authorization from the corporation to enter into such commercial492
agreements or to lawfully accept such amounts or revenues. The corporation shall not493
prescribe any terms or conditions that are required to be included in such commercial494
agreements.495
(e)  A person that holds a license or permit to engage in sports betting issued by another496
jurisdiction, either directly or through a parent company or affiliated subsidiary, may497
submit a request to the corporation for a temporary license for such person to immediately498
commence engagement in this state in sports betting. Such request shall include the499
application fee and annual licensing fee required under paragraph (10) of subsection (c) of500
Code Section 50-27-130.501
(f)  Upon receiving a request for a temporary license, the chief executive officer shall502
review the request. If the chief executive officer reviews the request and determines that503
S. B. 386 (SUB)
- 20 - 24 LC 36 5897S
the person requesting the temporary license holds a license or permit issued by another504
jurisdiction to engage in sports betting and has paid the required application fee and annual505
licensing fee, the chief executive officer may authorize such person to engage in sports506
betting pursuant to this article under a temporary license for up to one year or until a final507
determination on such person's application is made, whichever is later.508
(g)  All licenses issued under this article shall be valid for a term of five years, unless509
suspended or revoked as provided under this article.510
(h)  The corporation may adopt rules and regulations prescribing the manner in which a511
license may be transferred and a fee for a license transfer.512
(i)  A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully513
operating in this state and the licensee shall be the beneficiary of any interest accrued514
thereon.515
50-27-132.516
(a)  The following persons shall not be eligible to apply for or obtain a license under this517
article:518
(1)  A member of the board of directors or employee of the corporation or an employee519
of a corporation vendor; provided, however, that a corporation vendor as an entity may520
be eligible to apply for or obtain a license;521
(2)  An employee of a professional sports team on which the applicant offers sports522
betting;523
(3)  A coach of or player for a collegiate, professional, or Olympic sports team or sport524
for which the applicant offers sports betting, or an entity that has an affiliation or interest525
in such a sports team or sport;526
(4)  An individual who is a member or employee of any professional sports governing527
body or sporting events operator for which the applicant offers sports betting;528
S. B. 386 (SUB)
- 21 - 24 LC 36 5897S
(5)  An individual or entity with an owner, officer, or director who has been convicted of529
a crime of moral turpitude or similar degree as specified in rules and regulations530
promulgated by the corporation pursuant to this article;531
(6)  A person having the ability to directly affect the outcome of a sporting event upon532
which the applicant offers sports betting;533
(7)  A trustee or regent of a governing board of a public or private institution of higher534
education;535
(8) An individual prohibited by the rules or regulations of a professional sports536
governing body or sporting events operator of a collegiate sports team, league, or537
association from participating in sports betting;538
(9)  A student or an employee of a public or private institution of higher education who539
has access to material nonpublic information concerning a student athlete or a sports540
team, unless such access to information is deemed incidental; and541
(10) Any other category of persons, established by rules and regulations of the542
corporation, that, if licensed, would negatively affect the integrity of sports betting in this543
state.544
(b)  An individual listed in paragraphs (2) through (10) of subsection (a) of this Code545
section may hold an ownership interest in an applicant or licensee without disqualifying546
the applicant or licensee from obtaining or holding a license; provided, however, that such547
an ownership interest of 25 percent or more shall require approval from the corporation. 548
In determining whether such an ownership interest shall be the basis of disqualification, the549
corporation shall consider whether such interest would negatively affect the integrity of550
sports betting in this state and any other factors the corporation shall deem relevant.551
50-27-133.552
(a)  A Type 1 sports betting license authorizes the licensee, or its designated online sports553
betting services provider, to offer online sports betting. If a Type 1 eligible entity554
S. B. 386 (SUB)
- 22 - 24 LC 36 5897S
designates an online sports betting services provider, the designated online sports betting555
services provider shall instead fulfill the application and operational requirements for sports556
betting offered pursuant to this article.  The corporation shall establish a procedure for a557
Type 1 eligible entity to designate an online sports betting provider.558
(b)  The corporation shall issue not more than 16 Type 1 sports betting licenses as follows:559
(1)  Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities560
defined in subparagraph (A) of paragraph (42) of Code Section 50-27-122; provided,561
however, that more than one license may be issued to an owner of multiple professional562
sports teams;563
(2)  One Type 1 sports betting license shall be reserved for each of the Type 1 eligible564
entities defined in subparagraphs (B) through (E) of paragraph (42) of Code Section565
50-27-122; and566
(3)  The corporation shall award the remaining seven Type 1 sports betting licenses to567
separate online sports betting services providers via a public procurement process;568
(c)  The master sports betting license shall be deemed a Type 1 licensee and shall not be569
required to apply for a license; provided, however, that an online sports betting services570
provider engaged by the master sports betting licensee shall be required to apply for an571
online sports betting services provider license to operate online sports betting on behalf of572
the master sports betting licensee.573
(d)  A Type 1 eligible entity may contract with no more than one online sports betting574
services provider to operate online sports betting on behalf of the Type 1 eligible entity.575
(e)  A Type 1 eligible entity shall provide written notice to the corporation of its intention576
to apply for a Type 1 sports betting license within 60 days of the effective date of this577
article.  The failure of a Type 1 eligible entity to provide such written notice shall result in578
the permanent disqualification and prohibition of such Type 1 eligible entity from579
obtaining a Type 1 sports betting license.580
S. B. 386 (SUB)
- 23 - 24 LC 36 5897S
(f) A Type 1 sports betting licensee shall not offer online sports betting until the581
corporation has issued a Type 1 sports betting license to at least one online sports betting582
services provider via the public procurement process as determined by the corporation.583
(g)  The corporation shall begin to accept applications for all 16 Type 1 sports betting584
licenses under subsection (b) of this Code section on the same date.585
(h)  All applicants for the 16 Type 1 sports betting licenses under subsection (b) of this586
Code section that have submitted an application within 30 days of the date in which the587
corporation began to accept applications for Type 1 sports betting licenses shall be given588
an equal opportunity to first commence offering, conducting, or operating online sports589
betting in this state on the same day, and in any event not later than January 31, 2025.590
(i)  A Type 1 eligible entity described in subparagraphs (A) through (D) of paragraph (42)591
of Code Section 50-27-122 that becomes a Type 1 sports betting licensee or designates an592
online sports betting services provider shall establish and maintain procedures with respect593
to sporting events which the Type 1 eligible entity participates in or administers to ensure594
avoidance of conflicts of interest in the operation of sports betting in this state.595
50-27-134.596
(a)  An online sports betting services provider shall offer online sports betting only in597
accordance with the provisions of this article and the rules and regulations adopted by the598
corporation under this article.599
(b)  An online sports betting services provider shall obtain a license under this article600
before offering online sports betting pursuant to a contract with a Type 1 sports betting601
licensee or master sports betting licensee.  An online sports betting services provider602
license shall entitle the holder to contract with no more than one Type 1 sports betting603
licensee.604
(c)  If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a605
member of a league, association, or organization that prevents the holder from being606
S. B. 386 (SUB)
- 24 - 24 LC 36 5897S
subject to the regulatory control of the corporation or from otherwise operating under the607
license, such a Type 1 eligible entity may contractually appoint an online sports betting608
services provider for all aspects of corporation oversight and operations under the Type 1609
sports betting license.610
(d)  Institutional investors shall be exempt from any and all qualification and disclosure611
requirements under this article or required under the rules and regulations promulgated by612
the corporation pursuant to this article.  Such exemption shall extend to the owners,613
directors, and officers of such institutional investors.614
50-27-135.615
Proposition wagers shall only be offered on online sports betting platforms by the master616
sports betting licensee, an online sports betting services provider that contracts with the617
master sports betting licensee, or a Type 1 sports betting licensee.618
Part 3619
50-27-150.620
(a)  Notwithstanding any other law to the contrary, there shall be imposed an annual621
privilege tax of 25 percent of the adjusted gross income derived from online sports betting622
in accordance with this Code section.623
(b)  The privilege tax described in subsection (a) of this Code section shall be paid by the624
online sports betting services provider; provided, however, that, if a Type 1 sports betting625
licensee does not contract with an online sports betting services provider, such privilege626
tax shall be paid by such Type 1 sports betting licensee as provided for in subsection (c)627
of this Code section.  This subsection shall not apply to the master sports betting licensee.628
(c)  The privilege tax imposed under this Code section shall be paid monthly by the online629
sports betting services provider based on its monthly adjusted gross income for the630
S. B. 386 (SUB)
- 25 - 24 LC 36 5897S
immediately preceding calendar month.  The privilege tax shall be paid to the corporation631
in accordance with rules and regulations promulgated by the corporation.  If the online632
sports betting services provider's adjusted gross income for a month is a negative number,633
such online sports betting services provider may carry over such negative amount to634
subsequent months.635
(d)  All moneys from privilege taxes and fees collected under this Code section shall be636
distributed and used as provided under Article I, Section II, Paragraph VIII(c) of the637
Constitution.638
(e)  With the exception of application fees and annual licensing fees imposed by paragraph639
(10) of subsection (c) of Code Section 50-27-130, this privilege tax is in lieu of all other640
state and local sales and use taxes, income taxes, and fees imposed on the operation of641
sports betting or on the proceeds from the operation of sports betting in this state.  This642
subsection shall not exempt goods and services purchased by licensees in the ordinary643
course of business from the imposition of state or local sales and use taxes that would644
otherwise apply, nor shall it exempt licensees from the payment of taxes on real property645
owned by the licensee.646
50-27-151.647
(a)  Each Type 1 licensee or its sports betting services provider shall report to the648
corporation, no later than January 15 of each year:649
(1)  The total amount of wagers received from bettors for the immediately preceding650
calendar year;651
(2)  The adjusted gross income of the licensee for the immediately preceding calendar652
year; and653
(3)  Any additional information required by rules and regulations of the corporation654
deemed in the public interest or necessary to maintain the integrity of sports betting in655
this state.656
S. B. 386 (SUB)
- 26 - 24 LC 36 5897S
(b)  A licensee shall promptly report to the corporation any information relating to:657
(1)  The name of any newly elected officer or director of the board of the licensed entity;658
and659
(2)  The acquisition by any person of 10 percent or more of any class of corporate stock.660
(c)  With respect to information reported under subsection (b) of this Code section, a661
licensee shall include with such report a statement of any conflict of interest that may exist662
as a result of such election or acquisition.663
(d) Upon receiving a report under this Code section or subsection (b) of Code664
Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section665
50-27-193 to determine whether the licensee remains in compliance with this article.666
Part 4667
50-27-160.668
(a)  No person shall knowingly:669
(1)  Allow a minor to place a wager;670
(2)  Offer, accept, or extend credit to a bettor in the form of a marker; provided, however,671
that promotions and promotional credits shall be permitted to be offered and extended to672
bettors;673
(3)  Target minors in advertising or promotions for sports betting;674
(4)  Offer or accept a wager on any event, outcome, or occurrence other than a sporting675
event, including, without limitation, a high school sporting event offered, sponsored, or676
played in connection with a public or private institution that offers education at the677
secondary level; or678
(5)  Accept a wager from an individual who is prohibited from placing a wager or bet679
under Code Section 50-27-162, if such person has notice or actual knowledge that such680
individual is prohibited from placing such a wager or bet.681
S. B. 386 (SUB)
- 27 - 24 LC 36 5897S
(b)  If the corporation determines that a person has violated any provision of this Code682
section, the corporation may impose an administrative fine not to exceed $25,000.00 per683
violation, or a total of $50,000.00 for violations arising out of the same transaction or684
occurrence.685
50-27-161.686
Except for those individuals ineligible to place bets under Code Section 50-27-162, an687
individual who is 21 years of age or older and who is physically located in this state may688
place a wager in the manner authorized under this article and the rules and regulations of689
the corporation.690
50-27-162.691
(a)  The following individuals and categories of individuals shall not, directly or indirectly,692
place a wager on sporting events or online sports betting platforms in this state:693
(1)  A member, officer, or employee of the corporation shall not place a wager on any694
sporting event or platform;695
(2)  A corporation vendor employee shall not place a wager on a sporting event using696
their employer's platform;697
(3)  A licensee or principal owner, partner, member of the board of directors, officer, or698
supervisory employee of a licensee shall not place a wager on the licensee's platform;699
(4)  A person that provides goods or services to a licensee or any principal owner, partner,700
member of the board of directors, officer, or supervisory employee of a person that701
provides such goods or services shall not place a wager on the licensee's platform;702
(5)  A contractor, subcontractor, or consultant or any officer or employee of a contractor,703
subcontractor, or consultant of a licensee shall not place a wager on the licensee's704
platform, if such individual is directly involved in the licensee's operation of sports705
S. B. 386 (SUB)
- 28 - 24 LC 36 5897S
betting or the processing of sports betting claims or payments through the licensee's706
platform;707
(6)  An individual subject to a contract with the corporation shall not place a wager on708
any platform, if the contract contains a provision prohibiting the individual from709
participating in sports betting;710
(7) An individual with access to material nonpublic information that is known711
exclusively by an individual who is prohibited from placing a wager in this state under712
this Code section shall not use any such information to place a wager on any sporting713
event or platform;714
(8)  An amateur or Olympic athlete shall not place a wager on any sporting event in715
which the athlete participates;716
(9)  A professional athlete shall not place a wager on any sporting event overseen by such717
athlete's professional sports governing body or sporting events operator;718
(10)  A principal owner of a team, employee of a team, player, umpire, or sports union719
personnel, or employee, referee, coach, or official of a professional sports governing body720
or sporting events operator shall not place a wager on any sporting event, if the wager is721
based on a sporting event overseen by the individual's professional sports governing body722
or sporting events operator;723
(11)  An individual having the ability to directly affect the outcome of a sporting event724
shall not place a wager on such sporting event;725
(12)  A trustee or regent of a governing board of a public or private institution of higher726
education shall not place a wager on a collegiate sporting event;727
(13) An individual prohibited by the rules or regulations of a professional sports728
governing body or sporting events operator of a collegiate sports team, league, or729
association from participating in sports betting shall not place a wager on any sporting730
event to which such prohibition applies; and731
S. B. 386 (SUB)
- 29 - 24 LC 36 5897S
(14)  A student or an employee of a public or private institution of higher education who732
has access to material nonpublic information concerning a student athlete or a sports team733
shall be prohibited from placing a wager on a collegiate sporting event if such734
information is relevant to the outcome of such event.735
(b)  The corporation may prescribe by rules and regulations additional individuals and736
categories of individuals who are prohibited from placing a wager on specified sporting737
events or online sports betting platforms in this state.738
(c)  The corporation shall prescribe by rules and regulations any measures necessary to739
ensure individuals who are prohibited from placing a wager on specified sporting events740
or online sports betting platforms in this state shall not be permitted to collude with741
individuals not specifically enumerated in subsection (a) of this Code section to directly742
affect the outcome of a sporting event.743
(d)  Any individual who places a wager in violation of this Code section:744
(1)  For a first offense, shall be indefinitely prohibited from placing a wager, be required745
to forfeit the proceeds of any illegal wager, be guilty of a misdemeanor, and be fined not746
less than $500.00 nor more than $1,000.00;747
(2)  For a second offense, shall be:748
(A)  Required to forfeit the proceeds of any illegal wager;749
(B)  Guilty of a misdemeanor; and750
(C)  Fined not less than $5,000.00 or imprisoned for not less than one month nor more751
than five months, or both; and752
(3)  For a third or subsequent offense, shall be:753
(A)  Required to forfeit the proceeds of any illegal wager; 754
(B)  Guilty of a misdemeanor of a high and aggravated nature; and755
(C)  Fined not less than $7,500.00 or imprisoned for not less than three months, or both.756
S. B. 386 (SUB)
- 30 - 24 LC 36 5897S
50-27-163.757
(a)  The corporation shall by rules and regulations prohibit betting on injuries, penalties,758
the outcome of player discipline rulings or replay reviews, and any other type or form of759
betting under this article that is contrary to public policy or unfair to bettors.760
(b)(1)  A professional sports governing body or sporting events operator may submit to761
the corporation in writing, by providing notice in such form and manner as the762
corporation may require, a request to restrict, limit, or prohibit a certain type, form, or763
category of sports betting with respect to its sporting events, if the professional sports764
governing body or sporting events operator believes that such type, form, or category of765
sports betting with respect to its sporting events may undermine the integrity or perceived766
integrity of such professional sports governing body or sporting events operator or its767
sporting events.  The corporation shall request comments from sports betting licensees768
and sports betting services provider licensees on all such requests it receives.769
(2)  After giving due consideration to all comments received, the corporation shall, upon770
demonstration of good cause from the requestor that such type, form, or category of771
sports betting is likely to undermine the integrity or perceived integrity of such772
professional sports governing body or sporting events operator or its sporting events,773
grant the request.  The corporation shall respond to a request concerning a particular774
sporting event before the start of the event, or if it is not feasible to respond before then,775
no later than seven days after the request is made.  If the corporation determines that the776
requestor is more likely than not to prevail in successfully demonstrating good cause for777
its request, the corporation may provisionally grant the request of the professional sports778
governing body or sporting events operator until the corporation makes a final779
determination as to whether the requestor has demonstrated good cause.  Absent such a780
provisional grant by the corporation, sports betting licensees may continue to offer sports781
betting on sporting events that are the subject of such a request during the pendency of782
the corporation's consideration of the applicable request.783
S. B. 386 (SUB)
- 31 - 24 LC 36 5897S
Part 5784
50-27-170.785
(a)  Prior to placing a wager with a licensee via online sports betting, a bettor shall register786
and establish a player account with the licensee remotely during which the bettor shall787
attest that he or she meets the requirements to place a wager with a licensee in this state. 788
Prior to verification of a bettor's identity in accordance with this Code section, a licensee789
shall not allow the bettor to place a wager, make a deposit, or process a withdrawal via790
online sports betting. A licensee shall implement commercially and technologically791
reasonable procedures to prevent access to sports betting by minors on its online sports792
betting platforms.  A licensee may use information obtained from third parties to verify that793
an individual is authorized to open an account, place wagers, and make deposits and794
withdrawals.795
(b)  Each licensee shall adopt a registration policy to ensure that all bettors utilizing online796
sports betting are authorized to place a wager with a licensee within this state.  Such policy797
shall include, without limitation, commercially reasonable mechanisms to:798
(1)  Verify the identity and age of the registrant;799
(2)  Verify that the registrant is not knowingly prohibited from placing a wager under800
Code Section 50-27-162; and801
(3)  Obtain the following information from the registrant:802
(A)  Legal name;803
(B)  Date of birth;804
(C)  Physical address other than a post office box;805
(D)  Phone number;806
(E)  A unique username; and807
(F)  An active email account.808
S. B. 386 (SUB)
- 32 - 24 LC 36 5897S
(c)  Each licensee may in its discretion require a bettor to provide the licensee with a signed809
and notarized document attesting that the bettor is qualified to engage in sports betting810
under this article as part of the registration policy of the licensee.811
(d)  A bettor shall not register more than one account with a licensee, and each licensee812
shall use commercially and technologically reasonable means to ensure that each bettor is813
limited to one account.814
(e)  Each licensee, in addition to complying with state and federal law pertaining to the815
protection of the private, personal information of registered bettors, shall use all other816
commercially and technologically reasonable means to protect such information consistent817
with industry standards.818
(f)  A bettor may fund an account through:819
(1)  Electronic bank transfer of funds, including such transfers through third parties;820
(2)  Debit cards;821
(3)  Online and mobile payment systems that support online money transfers; and822
(4)  Any other method approved by rules and regulations of the corporation.823
(g)(1)  Licensees shall not allow bets to be placed until first verifying the identity of the824
bettor pursuant to this Code section and by rules promulgated by the corporation. 825
Further, and pursuant to rules promulgated by the corporation, licensees shall establish826
safeguards, including, but not limited to, access notifications and similar security827
safeguards, to protect each bettor's account.828
(2)  If a licensee determines that the information provided by a bettor to make a deposit829
or process a withdrawal is inaccurate or incapable of verification or violates the policies830
and procedures of the licensee, the licensee shall, within ten days, require the submission831
of additional information that can be used to verify the identity of such bettor.832
(3)  If such information is not provided or does not result in verification of the bettor's833
identity, the licensee shall:834
S. B. 386 (SUB)
- 33 - 24 LC 36 5897S
(A)  Immediately suspend the bettor's account and shall not allow the bettor to place835
wagers;836
(B)  Retain any winnings attributable to the bettor; and837
(C)  Refund the affected balance of deposits made to the account to the source of such838
deposit or by issuance of a check.839
(h)  A licensee shall utilize geofencing technology to ensure that online sports betting is840
available only to bettors who are physically located in this state.  Servers, including the use841
of backup servers, may be located outside of this state, consistent with federal law.  To the842
extent required by federal law, a licensee shall maintain in this state the servers it uses to843
accept wagers on a sporting event placed by bettors located in this state.844
(i)  Each licensee shall clearly and conspicuously display on its website a statement845
indicating that it is illegal for a person under 21 years of age to engage in sports betting in846
this state.847
(j)  The corporation shall promulgate rules and regulations for purposes of regulating sports848
betting via online sports betting.849
50-27-171.850
(a)  Licensees shall allow bettors to limit their betting activity with the licensee by, at a851
minimum, giving bettors the opportunity to place limits on the amounts deposited, the852
amounts wagered, and the amount of time spent wagering.  Licensees shall take reasonable853
steps to prevent bettors from overriding their self-imposed responsible gambling limits.854
(b)  The corporation shall promulgate rules and regulations that require a licensee to855
implement responsible sports betting programs.  Such rules and regulations shall require856
a licensee to develop a strategic implementation plan with details as to:857
(1)  The use of player data and technology to aid in identifying potential problem858
gamblers;859
S. B. 386 (SUB)
- 34 - 24 LC 36 5897S
(2)  The use of automated triggers to identify and manage accounts of potential problem860
gamblers; and861
(3)  The levels of intervention and education provided to identified at-risk players, which862
shall include at a minimum:863
(A)  A first phase involving communications with the individual in order to educate him864
or her on the availability of various responsible gaming features and resources offered865
by the licensee;866
(B)  A second phase that includes a video tutorial displayed to the individual either as867
one or multiple videos that provides education on the features and resources available;868
and869
(C)  A third phase, when warranted, that includes access to a responsible gaming870
professional provided by the licensee to advise the individual on possible corrective871
actions to address at-risk behavior.872
(c)  The corporation shall work with national and local organizations to provide services873
for individuals with problem gambling or a betting or gambling disorder and to establish874
prevention initiatives to reduce the number of individuals with problem gambling or a875
betting or gambling disorder, including, but not limited to, utilizing currently established876
programs for problem gambling or betting or gambling disorders.877
(d)  All sports betting advertisements shall prominently display messaging designed to878
prevent problem gambling and provide information about how to access resources related879
to problem gambling, including the National Council on Problem Gambling's helpline or880
other similar toll-free helpline.881
(e)  The corporation shall annually generate a report outlining activities with respect to882
problem gambling and betting or gambling disorders, including, but not limited to,883
descriptions of programs, grants, and other resources made available; the number of884
individuals seeking assistance; the number of individuals who reported completing885
programs and therapies; and the rate of recidivism, if known to the corporation.  The886
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corporation shall file the annual report with the Governor, the Lieutenant Governor, and887
the Speaker of the House of Representatives and shall publish such report on its website888
no later than January 30 of each year.889
50-27-172.890
(a)  Each licensee shall adopt and adhere to a written, comprehensive policy outlining its891
rules governing the acceptance of wagers and payouts.  Such policy and rules must be892
approved by the corporation prior to the acceptance of a wager by a licensee.  Such policy893
and rules must be readily available to a bettor on the licensee's website.894
(b)  The corporation shall promulgate rules and regulations regarding:895
(1)  The manner in which a licensee accepts wagers from and issues payouts to bettors,896
including payouts in excess of $10,000.00; and897
(2)  Requirements for reporting suspicious wagers.898
Part 6899
50-27-180.900
(a) Licensees are not required to use official league data or official event data for901
determining the results of:902
(1)  Tier 1 sports wagers on events of any organization, whether headquartered in the903
United States or elsewhere; or904
(2)  Tier 2 sports wagers on events of organizations that are not headquartered in the905
United States.906
(b)(1)  A professional sports governing body or sporting events operator headquartered907
in the United States may notify the corporation that it desires licensees to use official908
league data or official event data for determining the results of tier 2 sports wagers on its909
sporting events.  A notification under this subsection shall be made in the form and910
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manner as the corporation shall require.  The corporation shall notify each licensee within911
five days after receipt of such notification from a professional sports governing body or912
sporting events operator.  If a professional sports governing body or sporting events913
operator does not notify the corporation of its desire to supply official league data or914
official event data, licensees are not required to use official league data or official event915
data for determining the results of any tier 2 wagers on sporting events of that916
professional sports governing body or sporting events operator.917
(2) Within 60 days after the corporation notifies each licensee as provided under918
paragraph (1) of this subsection, or within a longer period as may be agreed between such919
professional sports governing body or sporting events operator and the applicable920
licensee, each such licensee shall be required to use only official league data or official921
event data, as applicable, to determine the results of tier 2 sports wagers on sporting922
events sanctioned by such professional sports governing body or sporting events operator,923
except when:924
(A)  The professional sports governing body or sporting events operator, or a designee925
thereof, is unable to provide a feed of official league data or official event data to926
determine the results of a particular type of tier 2 sports wager, in which case licensees927
are not required to use official league data for determining the results of the applicable928
tier 2 sports wager until the data feed becomes available on commercially reasonable929
terms and conditions; or930
(B)  A licensee is able to demonstrate to the corporation that the professional sports931
governing body or sporting events operator, or a designee thereof, will not provide a932
feed of official league data or official event data to the licensee on commercially933
reasonable terms and conditions.934
(3)  The following is a nonexclusive list of factors the corporation may consider in935
evaluating whether official league data or official event data is being offered on936
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commercially reasonable terms and conditions for purposes of subparagraphs (A) and (B)937
of paragraph (2) of this subsection:938
(A)  The extent to which licensees have purchased the same or similar official league939
data or official event data on the same or similar terms, particularly in jurisdictions940
where such purchase was not required by law or was required by law but only if offered941
on commercially reasonable terms;942
(B)  The nature and quantity of the official league data or official event data, including,943
without limitation, its speed, accuracy, reliability, and overall quality as compared to944
comparable nonofficial data;945
(C)  The quality and complexity of the process used to collect and distribute the official946
league data or official event data as compared to comparable nonofficial data;947
(D)  The availability of tier 2 official league data of a professional sports governing948
body or tier 2 official event data of a sporting events operator to a licensee from more949
than one authorized source;950
(E)  Market information, including, without limitation, price and other terms and951
conditions, regarding the purchase of comparable data by licensees for the purpose of952
settling sports wagers, for use in this state or other jurisdictions; and953
(F)  The extent to which professional sports governing bodies or sporting events954
operators, or designees thereof, have made available to licensees the data used to settle955
the results of tier 2 sports wagers and any terms and conditions relating to the use of956
such data.957
(4)  Notwithstanding any provisions to the contrary in this Code section, including,958
without limitation, paragraph (2) of this subsection, while the corporation is evaluating959
whether a professional sports governing body or a sporting events operator, or the960
designee thereof, will provide a feed of official league data or official event data on961
commercially reasonable terms and conditions pursuant to paragraph (3) of this962
S. B. 386 (SUB)
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subsection, licensees are not required to use official league data or official event data for963
determining the results of tier 2 sports wagers.964
(5)  The corporation shall make a determination under paragraph (3) of this subsection965
within 60 days after the licensee notifies the corporation that it desires to demonstrate that966
the professional sports governing body or sporting events operator, or a designee thereof,967
will not provide a feed of official league data or official event data to such licensee on968
commercially reasonable terms and conditions.969
Part 7970
50-27-190.971
Members of the corporation or designated employees thereof may, during normal business972
hours, enter the premises of any facility of a licensee, or a third party utilized by the973
licensee to operate and conduct business in accordance with this article, for the purpose of974
inspecting books and records kept as required by this article to ensure that the licensee is975
in compliance with this article or to make any other inspection of the premises necessary976
to protect the public interests of this state and its consumers.977
50-27-191.978
(a)  The corporation, licensees, corporation vendors, and vendors shall use commercially979
reasonable efforts to cooperate with investigations conducted by any professional sports980
governing body, any sporting events operator, and law enforcement agencies, including,981
but not limited to, using commercially reasonable efforts to provide or facilitate the982
provision of betting information.983
(b)  Licensees shall promptly report to the corporation any information relating to:984
(1)  Abnormal betting activity or patterns that may indicate a concern with the integrity985
of a sporting event; and986
S. B. 386 (SUB)
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(2)  Conduct that corrupts the betting outcome of a sporting event for purposes of987
financial gain, including match fixing.988
(c)  Licensees shall as soon as is practicable report any information relating to conduct989
described in subsection (b) of this Code section to the professional sports governing body990
or sporting events operator.991
(d)  Licensees shall use commercially reasonable efforts to maintain, in real time and at the992
account level, anonymized information regarding a bettor; the amount and type of bet; the993
time the bet was placed; the location of the bet, including the internet protocol address if994
applicable; the outcome of the bet; and records of abnormal betting activity for three years995
after the sporting event occurs.  The corporation may request such information in the form996
and manner required by rules and regulations of the corporation.  For purposes of this997
subsection, the term 'real time' means on a commercially reasonable periodic interval.998
(e)  All records, documents, and information received by the corporation pursuant to this999
Code section shall be considered investigative records of a law enforcement agency, shall1000
not be subject to Article 4 of Chapter 18 of this title, and shall not be released under any1001
condition without the permission of the person providing such records, documents, or1002
information.1003
(f)  Nothing in this Code section shall require a sports betting licensee to provide any1004
information that is prohibited by federal, state, or local laws or rules and regulations,1005
including, without limitation, laws and rules and regulations relating to privacy and1006
personally identifiable information.1007
(g)  If a professional sports governing body or sporting events operator has notified the1008
corporation that access to the information described in subsection (d) of this Code section1009
for wagers placed on its sporting events is necessary to monitor the integrity of its sporting1010
events and represents to the corporation that it specifically uses such data for the purpose1011
of monitoring the integrity of sporting events of such professional sports governing body1012
or sporting events operator, then licensees shall share, in a commercially reasonable1013
S. B. 386 (SUB)
- 40 - 24 LC 36 5897S
frequency, form, and manner, with the professional sports governing body or sporting1014
events operator, or a designee thereof, the same information the licensee is required to1015
maintain under subsection (d) of this Code section with respect to sports wagers on such1016
a body's or operator's sporting events.  A professional sports governing body or sporting1017
events operator, or a designee thereof, shall use information received under this subsection1018
for integrity-monitoring purposes only and shall not use such information for commercial1019
or any other purposes.  Nothing in this subsection shall require a licensee to provide any1020
information that is prohibited by federal, state, or local laws, rules, or regulations,1021
including, but not limited to, laws, rules, or regulations relating to privacy and personally1022
identifiable information.1023
50-27-192.1024
The corporation shall assist in any investigations by law enforcement to determine whether:1025
(1)  A licensee is accepting wagers from minors or other persons ineligible to place1026
wagers in this state; and1027
(2)  An individual is unlawfully accepting wagers from another individual without a1028
license or at a location in violation of this article.1029
50-27-193.1030
(a)  The corporation may investigate and conduct a hearing with respect to a licensee upon1031
information and belief that the licensee has violated this article or upon the receipt of a1032
credible complaint from any person that a licensee has violated this article. The1033
corporation shall conduct investigations and hearings in accordance with rules and1034
regulations adopted by the corporation.1035
(b)  If the corporation determines that a licensee has violated any provision of this article1036
or any rules and regulations of the corporation, the corporation may suspend, revoke, or1037
refuse to renew a license; impose an administrative fine not to exceed $25,000.00 per1038
S. B. 386 (SUB)
- 41 - 24 LC 36 5897S
violation or a total of $50,000.00 for violations arising out of the same transaction or1039
occurrence; or both.1040
(c)  The corporation shall promulgate rules and regulations establishing a schedule of1041
administrative fines that may be assessed in accordance with subsection (b) of this Code1042
section for each violation of this article; provided, however, that, if the corporation finds1043
that:1044
(1)  A licensee is knowingly accepting wagers from minors or other persons ineligible to1045
place wagers in this state, the corporation shall impose a fine against the licensee as1046
follows:1047
(A)  For a first offense, $1,000.00;1048
(B)  For a second offense, $2,000.00; and1049
(C)  For a third or subsequent offense, $5,000.00; or1050
(2)  An individual is unlawfully accepting wagers from another individual without a1051
license, the corporation shall impose a fine against the individual as follows:1052
(A)  For a first offense, $10,000.00;1053
(B)  For a second offense, $15,000.00; and1054
(C)  For a third or subsequent offense, $25,000.00.1055
(d)  The corporation may refer conduct that it reasonably believes is a violation of Article 21056
of Chapter 12 of Title 16 to the appropriate law enforcement agency.1057
50-27-194.1058
(a)  Any person that violates any provisions of this article shall be liable for a civil penalty1059
of not more than $5,000.00 per violation, not to exceed $50,000.00 for violations arising1060
out of the same transaction or occurrence, which shall accrue to the corporation and may1061
be recovered in a civil action brought by or on behalf of the corporation.1062
(b)  The corporation may seek and obtain an injunction in a court of competent jurisdiction1063
for purposes of enforcing this article.1064
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(c)  Costs shall not be taxed against the corporation or this state for actions brought under1065
this article.1066
50-27-195.1067
(a)  Fines assessed under this article shall be accounted for separately for use by the1068
corporation in a manner consistent with rules and regulations of the corporation.1069
(b)  The corporation may issue subpoenas to compel the attendance of witnesses and the1070
production of relevant books, accounts, records, and documents for purposes of carrying1071
out its duties under this article.1072
50-27-196.1073
(a)  A licensee or other individual aggrieved by a final decision or action of the corporation1074
may appeal such decision or action to the Superior Court of Fulton County.1075
(b)  The Superior Court of Fulton County shall hear appeals from decisions or actions of1076
the corporation and, based upon the record of the proceedings before the corporation, may1077
reverse the decision or action of the corporation only if the appellant proves the decision1078
or action to be:1079
(1)  Clearly erroneous;1080
(2)  Arbitrary and capricious;1081
(3)  Procured by fraud;1082
(4)  A result of substantial misconduct by the corporation; or1083
(5)  Contrary to the United States Constitution, the Constitution of Georgia, or this article.1084
(c)  The Superior Court of Fulton County may remand an appeal to the corporation to1085
conduct further hearings.1086
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50-27-197.1087
(a)  It shall be unlawful for any person, directly or indirectly, to knowingly receive, supply,1088
broadcast, display, or otherwise transmit material nonpublic information for the purpose1089
of betting on a sporting event or influencing another individual's or entity's wager on a1090
sporting event.1091
(b)  This Code section shall not apply to the dissemination of public information as news,1092
entertainment, or advertising.1093
(c)  Any person in violation of this Code section shall be indefinitely prohibited from1094
placing a wager, be required to forfeit the proceeds of any illegal wager, and be guilty of1095
a misdemeanor."1096
PART III1097
SECTION 3-1.1098
Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated,1099
relating to gambling, is amended by revising paragraph (1) of Code Section 16-12-20,1100
relating to definitions, as follows:1101
"(1)  'Bet' means an agreement that, dependent upon chance even though accompanied1102
by some skill, one stands to win or lose something of value.  A bet does not include:1103
(A)  Contracts of indemnity or guaranty or life, health, property, or accident insurance;1104
or1105
(B)  An offer of a prize, award, or compensation to the actual contestants in any bona1106
fide contest for the determination of skill, speed, strength, or endurance or to the owners1107
of animals, vehicles, watercraft, or aircraft entered in such contest; or1108
(C)  Any consideration paid to participate in online sports betting offered pursuant to1109
Article 4 of Chapter 27 of Title 50."1110
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- 44 - 24 LC 36 5897S
SECTION 3-2.1111
Said part is further amended by revising Code Section 16-12-27, relating to advertisement1112
or solicitation for participation in lotteries, as follows:1113
"16-12-27.1114
(a)  It shall be unlawful for any person, partnership, firm, corporation, or other entity to1115
sell, distribute, televise, broadcast, or disseminate any advertisement, television or radio1116
commercial, or any book, magazine, periodical, newspaper, or other written or printed1117
matter containing an advertisement or solicitation for participation in any lottery declared1118
to be unlawful by the laws of this state unless such advertisement, commercial, or1119
solicitation contains or includes the words 'void in Georgia' printed or spoken so as to be1120
clearly legible or audible to persons viewing or hearing such advertisement, commercial,1121
or solicitation.1122
(b)  Any person, partnership, firm, corporation, or other entity violating subsection (a) of1123
this Code section shall be guilty of a misdemeanor.1124
(c)  This Code section shall not apply to any advertisement or solicitation for participation1125
in online sports betting by any person licensed by the Georgia Lottery Corporation under1126
Article 4 of Chapter 27 of Title 50 that is concerning such licensee's lawful activities."1127
SECTION 3-3.1128
Said part is further amended by revising Code Section 16-12-28, relating to communicating1129
gambling information, as follows:1130
"16-12-28.1131
(a)  A person who knowingly communicates information as to bets, betting odds, or1132
changes in betting odds or who knowingly installs or maintains equipment for the1133
transmission or receipt of such information with the intent to further gambling commits the1134
offense of communicating gambling information.1135
S. B. 386 (SUB)
- 45 - 24 LC 36 5897S
(b)  A person who commits the offense of communicating gambling information, upon1136
conviction thereof, shall be punished by imprisonment for not less than one nor more than1137
five years or by a fine not to exceed $5,000.00, or both.1138
(c)  This Code section shall not apply to the activities of a person licensed by the Georgia1139
Lottery Corporation under Article 4 of Chapter 27 of Title 50 or an employee, agent, or1140
other person acting in furtherance of his or her employment by such licensee."1141
PART IV1142
SECTION 4-1.1143
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is1144
amended by revising paragraph (55) of Code Section 48-8-3, relating to exemptions from1145
state sales and use tax, as follows:1146
"(55) The sale of lottery tickets authorized by Chapter 27 of Title 50 or wagers1147
authorized by Article 4 of Chapter 27 of Title 50;"1148
PART V1149
SECTION 5-1.1150
This Act shall become effective on January 1, 2025, following the ratification of an1151
amendment to the Constitution of Georgia authorizing the General Assembly to provide by1152
law for the operation and regulation of sports betting activities; provided, however, to the1153
extent that this Act conflicts with law in effect at the time of ratification, this Act and such1154
amendment shall control, and to the extent such law is not in conflict, the law in effect at the1155
time of ratification shall control and shall remain in full force and effect. If such amendment1156
is not so ratified, then this Act shall stand automatically repealed.1157
S. B. 386 (SUB)
- 46 - 24 LC 36 5897S
SECTION 5-2.1158
All laws and parts of laws in conflict with this Act are repealed.1159
S. B. 386 (SUB)
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