25 LC 55 0586S The House Committee on Higher Education offers the following substitute to HB 686: 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 provide3 for the corporation to engage in certain activities related to sports betting; to provide for a4 short title; to provide for legislative findings; to provide for definitions; to provide for the5 corporation's powers and duties relative to sports betting; to provide for the procedures,6 limitations, requirements, and qualifications of the licensing of any person offering,7 operating, or managing sports betting in this state; to provide for rules and regulations8 promulgated by the corporation; to provide for a privilege tax; to establish the Georgia Sports9 Betting Proceeds Trust Fund; to require certain reports; to regulate wagers and provide10 requirements for bettors; to provide for violations; to provide for penalties and fines; to11 provide for bettors to restrict themselves from placing certain wagers; to provide certain12 resources and safeguards for individuals with problem gambling or a betting or gambling13 disorder; to provide for the use of official league data; to prohibit certain conduct by the14 corporation, employees of the corporation, licensees, and other persons; to provide for certain15 penalties; to provide for the collection and disposition of fees and fines; to provide for16 construction; to amend Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of17 Georgia Annotated, relating to gambling, so as to exclude from the definition of "bet" any18 H. B. 686 (SUB) - 1 - 25 LC 55 0586S consideration paid to a sports betting licensee; to provide for the exemption of persons19 lawfully engaged in online sports betting from regulations and restrictions regarding20 gambling information; to amend Title 48 of the Official Code of Georgia Annotated, relating21 to revenue and taxation, so as to exempt wagers placed as part of sports betting; to provide22 for related matters; to provide for a contingent effective date and automatic repeal; to repeal23 conflicting laws; and for other purposes.24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:25 PART I26 SECTION 1-1.27 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended28 in Code Section 50-27-9, relating to general powers of the Georgia Lottery Corporation, by29 revising paragraphs (18) and (19) of subsection (a) and adding a new paragraph to read as30 follows:31 "(18) To act as a retailer, to conduct promotions which involve the dispensing of lottery32 tickets or shares, and to establish and operate a sales facility to sell lottery tickets or33 shares and any related merchandise; and34 (19) To perform any actions and carry out any responsibilities provided for in Article 435 of this chapter; and36 (19)(20) To adopt and amend such regulations, policies, and procedures as necessary to37 carry out and implement its powers and duties, organize and operate the corporation,38 regulate the conduct of lottery games in general, and any other matters necessary or39 desirable for the efficient and effective operation of the lottery or the convenience of the40 public. The promulgation of any such regulations, policies, and procedures pursuant to41 this article and Article 2 of this chapter shall be exempt from the requirements of42 H. B. 686 (SUB) - 2 - 25 LC 55 0586S Chapter 13 of this title, the 'Georgia Administrative Procedure Act.' Notwithstanding any43 other provision of law to the contrary, hearings related to any dispute between licensees44 under Code Section 50-27-102 shall be held in accordance with the provisions of Part 145 of Article 1 of Chapter 9 of Title 9, the 'Georgia Arbitration Code.' All other hearings46 and any rules, regulations, policies, or procedures related to the administration,47 enforcement, or violation of this article shall be subject to the provisions of Chapter 1348 of this title."49 PART II50 SECTION 2-1.51 Said title is further amended by adding a new article to Chapter 27, relating to the "Georgia52 Lottery for Education Act," to read as follows:53 "ARTICLE 454 Part 155 50-27-120.56 This article shall be known and may be cited as the 'Georgia Sports Betting Act.'57 50-27-121.58 The General Assembly finds that:59 (1) Sports betting shall be overseen and regulated, and may also be offered, by the60 Georgia Lottery Corporation in a manner that provides continuing entertainment to the61 public, maximizes revenues, protects consumers, and ensures that sports betting is62 operated in this state with integrity and dignity and free of political influence;63 H. B. 686 (SUB) - 3 - 25 LC 55 0586S (2) The corporation shall be accountable to the General Assembly and to the public for64 the management and oversight of sports betting in this state through a system of audits65 and reports;66 (3) The ability to offer sports betting in this state under a license issued in accordance67 with this article constitutes a taxable privilege and not a right;68 (4) Net proceeds of sports betting conducted pursuant to this article shall be used for the69 purposes authorized by Article I, Section II, Paragraph VIII of the Constitution of70 Georgia; and71 (5) In accordance with Code Section 50-27-2, sports betting shall be conducted in a72 manner so as to safeguard the fiscal soundness of the state, to enhance public welfare, and73 to support the funding authorized by Article I, Section II, Paragraph VIII(c) of the74 Constitution of Georgia.75 50-27-122.76 As used in this article, the term:77 (1) 'Adjusted gross income' means the total of all moneys paid to a licensee as wagers78 minus federal excise taxes and minus the total amount paid out to winning bettors,79 including the cash value of merchandise awarded as winnings.80 (2) 'Applicant' means any person that applies for a license under this article.81 (3) 'Bettor' means an individual who is:82 (A) Physically present in this state when placing a wager with a licensee;83 (B) Twenty-one years of age or older; and84 (C) Not prohibited from placing a wager or bet under Code Section 50-27-162.85 (4) 'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves86 to account for losses suffered by a licensee and owed to bettors.87 (5) 'Cheating' means improving the chances of winning or altering the outcome through88 deception, interference, or manipulation of a sporting event or of any equipment,89 H. B. 686 (SUB) - 4 - 25 LC 55 0586S including software, pertaining to or used in relation to the equipment used for or in90 connection with the sporting event on which wagers are placed or invited. Such term91 shall include match fixing and attempts and conspiracy to cheat.92 (6) 'Collegiate sporting event' means a sporting or athletic event involving a sports or93 athletic team of a public or private institution of higher education.94 (7) 'Esports event' means an organized video game competition between players who95 play individually or as teams.96 (8) 'Fantasy or simulated contest' means a game or event in which one or more players97 compete based on winning outcomes that reflect the relative knowledge and skill of the98 players and are determined predominately by accumulated statistical results of the99 performance of individuals, including, but not limited to, athletes in sporting events.100 (9) 'Fixed-odds betting' means bets made at predetermined odds or on the spread where101 the return to the bettor is unaffected by any later change in odds or the spread.102 (10) 'Futures wager' means a wager made on the occurrence of an event in the future103 relating to a sporting event.104 (11) 'Institutional investor' means:105 (A) A retirement fund administered by a public agency for the exclusive benefit of106 federal, state, or local public employees;107 (B) An investment company registered under the Investment Company Act of 1940;108 (C) A chartered or licensed life insurance company or property and casualty insurance109 company;110 (D) A banking and other chartered or licensed lending institution;111 (E) An investment advisor registered under the Investment Advisers Act of 1940; or112 (F) A pension investment board.113 (12) 'License' means any of the licenses issued by the corporation under this article.114 (13) 'Licensee' means a person that holds a license issued by the corporation under this115 article.116 H. B. 686 (SUB) - 5 - 25 LC 55 0586S (14) 'Master sports betting licensee' means the Georgia Lottery Corporation.117 (15) 'Material nonpublic information' means information that has not been disseminated118 publicly concerning an athlete, contestant, prospective contestant, or athletic team,119 including, without limitation, confidential information related to medical conditions or120 treatment, physical or mental health or conditioning, physical therapy or recovery,121 discipline, sanctions, academic status, education records, eligibility, playbooks, signals,122 schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or123 recordings of practices or other athletic activities.124 (16) 'Merchandise' means any goods or services provided to bettors free of charge, at a125 discounted rate, or in the form of a rebate or credit.126 (17) 'Minor' means an individual who is less than 21 years of age.127 (18) 'Moneyline wager' means the fixed odds in relation to a dollar amount that a team128 or person participating in a sporting event will win outright regardless of the spread.129 (19) 'Official event data' means statistics, results, outcomes, and other data related to a130 sporting event obtained pursuant to an agreement with the relevant sporting events131 operator whose corporate headquarters is based in the United States or an entity expressly132 authorized by such sporting events operator to provide such information to licensees for133 purposes of determining the outcome of tier 2 sports wagers on such sporting event.134 (20) 'Official league data' means statistics, results, outcomes, and other data related to135 a sporting event obtained pursuant to an agreement with the relevant professional sports136 governing body whose corporate headquarters is based in the United States or an entity137 expressly authorized by such professional sports governing body to provide such138 information to licensees for purposes of determining the outcome of tier 2 sports wagers.139 (21) 'Online sports betting' means a wager on a sporting event that is placed via the140 internet through any electronic device and accepted through an online sports betting141 platform.142 H. B. 686 (SUB) - 6 - 25 LC 55 0586S (22) 'Online sports betting platform' means the combination of hardware, software, and143 data networks used to manage, administer, or control online sports betting and any144 associated wagers accessible by any electronic means.145 (23) 'Online sports betting services provider' means a person that contracts with the146 master sports betting licensee or a Type 1 sports betting licensee under Code Section147 50-27-133 to operate online sports betting on behalf of such licensee and that is licensed148 by the corporation.149 (24) 'Over/under wager' means a single wager that predicts whether the combined score150 of the two persons or teams engaged in a sporting event will be lower or higher than a151 predetermined number.152 (25) 'Parlay wager' means a single wager that incorporates two or more individual bets153 for purposes of earning a higher payout if each bet incorporated within the wager wins.154 (26) 'Person' means an individual or entity.155 (27) 'Principal owner' means a person that owns an interest of 10 percent or more of the156 entity.157 (28) 'Professional sporting event' means an athletic or sporting event involving at least158 two competitors who have the opportunity to receive compensation for participating in159 such event.160 (29) 'Professional sports governing body' means the organization, league, or association161 whose corporate headquarters is based in the United States that oversees a sport and162 prescribes final rules and enforces codes of conduct with respect to such sport and163 participants therein.164 (30) 'Professional sports team' means a major league professional team:165 (A) Based in this state;166 (B) That plays baseball, football, men's basketball, soccer, or women's basketball; and167 (C) Whose regular season games have had the highest attendance for its respective168 professional sport in the state during the past five years.169 H. B. 686 (SUB) - 7 - 25 LC 55 0586S (31) 'Proposition wager' means a wager on a single specific action, statistic, occurrence,170 or nonoccurrence to be determined during a sporting event and includes any such action,171 statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of172 the professional sporting event to which it relates.173 (32) 'Sporting event' means any:174 (A) Professional sporting event, including motor sports sanctioned by a national or175 international organization or association;176 (B) Collegiate sporting event;177 (C) Olympic sporting or athletic event;178 (D) Sporting or athletic event sanctioned by a national or international organization or179 association;180 (E) Sporting or athletic event conducted or organized by a sporting events operator;181 (F) Esports event; or182 (G) Other event authorized by the corporation.183 Such term shall not include a nonprofessional, noncollegiate, or non-Olympic sporting184 or athletic event if the majority of the participants are under the age of 18 years and shall185 not include any Special Olympics sporting or athletic event.186 (33) 'Sporting events operator' means a person that conducts or organizes a sporting187 event for athletes or other participants that is not held or sanctioned as an official sporting188 event of a professional sports governing body.189 (34) 'Sports betting' means online sports betting.190 (35) 'Sports betting equipment' means any of the following that is directly used in191 connection with the operation of sports betting:192 (A) Any mechanical, electronic, or other device, mechanism, or equipment;193 (B) Any software, application, components, or other goods; or194 (C) Anything to be installed or used on a personal electronic device.195 H. B. 686 (SUB) - 8 - 25 LC 55 0586S (36)(A) 'Sports betting supplier' means a person that provides sports betting equipment196 necessary for the creation of sports betting markets and the determination of bet197 outcomes, directly to any licensee involved in the acceptance of bets, including any of198 the following:199 (i) Providers of data feeds and odds services;200 (ii) Platform providers;201 (iii) Risk management providers:202 (iv) Integrity monitoring providers; and203 (v) Other providers of sports betting supplier services as determined by the204 corporation.205 (B) Such term shall not include a professional sports governing body that:206 (i) Provides official league data concerning its own sporting event to a sports betting207 licensee solely on that basis; or208 (ii) Provides raw statistical match data to one or more designated and licensed209 suppliers of data feeds and odds services solely on that basis.210 (37) 'Spread' means the predicted scoring differential between two persons or teams211 engaged in a sporting event.212 (38) 'Supervisory employee' means a principal owner or employee having the authority213 to act on behalf of a licensee whose judgment is relied upon to manage and advance the214 sports betting business operations of a licensee.215 (39) 'Tier 1 sports wager' means a sports wager that is determined solely by the final216 score or final outcome of the sporting event and is placed before the sporting event has217 begun.218 (40) 'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.219 (41) 'Type 1 eligible entity' means any of the following:220 (A) Any professional sports team;221 H. B. 686 (SUB) - 9 - 25 LC 55 0586S (B) A professional sports governing body that holds one or more sanctioned annual222 golf tournaments on a national tour of professional golf in this state, and has held one223 or more of the same or different sanctioned annual golf tournaments on a national tour224 of professional golf in this state for at least 30 years;225 (C) The owner of a facility in this state that has held an annual invitational golf226 tournament for professional and amateur golfers for at least 30 years;227 (D) The owner of a facility located in this state that hosts automobile races on a228 national association for stock car racing national tour or a wholly owned for-profit229 subsidiary of the owner of such a facility, if the owner is a nonprofit corporation or230 nonprofit organization; and231 (E) The Georgia Lottery Corporation.232 (42) 'Type 1 sports betting licensee' means the master sports betting licensee, an online233 sports betting services provider awarded a Type 1 license via the public procurement234 process by the master sports betting licensee, or a Type 1 eligible entity licensed or235 authorized by the corporation to directly or indirectly offer online sports betting.236 (43) 'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown237 outcome of one or more sporting events or portions of sporting events. Such term shall238 include single-game wagers, futures wagers, tier 1 or tier 2 wagers, teaser wagers, parlay239 wagers, over/under wagers, moneyline wagers, pools, exchange wagering, in-game240 wagering, in-play wagers, proposition wagers, straight wagers, fixed-odds betting, and241 any other bet or wager approved by the corporation. Such term shall not include a242 pari-mutuel bet or wager or an entry fee paid to participate in a fantasy or simulated243 contest.244 H. B. 686 (SUB) - 10 - 25 LC 55 0586S 50-27-123.245 (a) The corporation shall have all powers and duties necessary to carry out the provisions246 of this article and to exercise the control of sports betting in this state as authorized by this247 article. Such powers and duties shall include, but shall not be limited to, the following:248 (1) To have jurisdiction, supervision, and regulatory authority over sports betting,249 including, but not limited to, regulation, licensure, and offering of sports betting on250 mobile applications available state wide via the internet and through a limited number of251 licenses to be awarded to Type 1 sports betting licensees;252 (2) To appoint and employ such persons as the corporation deems essential to perform253 its duties under this article and to ensure that such sports betting is conducted with order254 and the highest integrity. Such employees shall possess such authority and perform such255 duties as the corporation shall prescribe or delegate to them. Such employees shall be256 compensated as provided by the corporation;257 (3) To enter upon, investigate, and have free access to all places of business of any258 licensee under this article and to compel the production of any books, ledgers, documents,259 records, memoranda, or other information of any licensee to ensure such licensee's260 compliance with the rules and regulations promulgated by the corporation pursuant to this261 article;262 (4) To promulgate any rules and regulations as the corporation deems necessary and263 proper to administer the provisions of this article; provided, however, that the initial rules264 and regulations governing sports betting shall be promulgated, provided for a period of265 public comment, and adopted by the corporation within 90 days of the effective date of266 this article. Such initial rules and regulations and all other rules and regulations of the267 corporation promulgated and adopted pursuant to this article shall not be subject to268 Chapter 13 of this title, the 'Georgia Administrative Procedure Act';269 (5) To issue subpoenas for the attendance of witnesses before the corporation, administer270 oaths, and compel production of records or other documents and testimony of witnesses271 H. B. 686 (SUB) - 11 - 25 LC 55 0586S whenever, in the judgment of the corporation, it is necessary to do so for the effectual272 discharge of the duties of the corporation under this article;273 (6) To compel any person licensed by the corporation to file with the corporation such274 data, documents, and information as shall appear to the corporation to be necessary for275 the performance of the duties of the corporation under this article, including, but not276 limited to, financial statements and information relative to stockholders and all others277 with a pecuniary interest in such person;278 (7) To prescribe the manner in which books and records of persons licensed or permitted279 by the corporation under this article shall be kept;280 (8) To enter into arrangements with any foreign or domestic government or281 governmental agency for the purposes of exchanging information or performing any other282 act to better ensure the proper conduct of betting under this article;283 (9) To order such audits, in addition to those otherwise required by this article, as the284 corporation deems necessary and desirable;285 (10) Upon the receipt of a complaint of an alleged criminal violation of this article, to286 immediately report such complaint to the appropriate law enforcement agency with287 jurisdiction to investigate criminal activity;288 (11) To provide for the reporting of the applicable amount of state and federal income289 tax of persons claiming a prize or payoff for a winning wager under this article;290 (12) To establish and administer programs for providing assistance to individuals with291 problem gambling or a betting or gambling disorder, including, but not limited to:292 (A) Educating potential gamblers of methods and types of bets and fairly informing293 potential gamblers of the odds or likelihood of winning such bets;294 (B) Establishing and administering programs for educating potential gamblers about295 responsible gambling, the warning signs of problem gambling or betting or gambling296 disorders and how to prevent and treat problem gambling or betting or gambling297 disorders;298 H. B. 686 (SUB) - 12 - 25 LC 55 0586S (C) Developing and funding responsible gaming education campaigns coupled with299 prevention and education efforts within communities that raise awareness of potential300 signs or risk factors of problem gambling or betting or gambling disorders;301 (D) Encouraging the use of harm-minimizing measures by bettors, such as excluding302 or limiting oneself from obtaining credit extensions, making credit card or cashless303 payments, cashing checks, or making automated teller machine withdrawals, as well as304 utilizing limit-setting tools and personal data and information to make informed305 decisions about gambling;306 (E) Promulgating rules and regulations that enable bettors to self-limit with a licensee307 and self-exclude from sports betting activities state wide. Any such rules or regulations308 related to self-exclusion shall require the individual seeking self-exclusion to provide309 identifying information, including, at a minimum, full name, address, date of birth, and310 social security number;311 (F) Adopting processes for individuals to express concerns related to problem312 gambling or betting or gambling disorders to the corporation;313 (G) Developing state-wide advertising guidelines to ensure that the marketing of sports314 betting is not targeted to minors and does not include content, themes, and promotions315 that have special appeal to individuals with problem gambling or a betting or gambling316 disorder;317 (H) Requiring the electronic posting of signs or notifications on online sports betting318 platforms that bear the 1-800-GAMBLER toll-free number, which provides or directs319 callers to assistance and resources for individuals with problem gambling or a betting320 or gambling disorder; and321 (I) Requiring, through the promulgation of rules and regulations, limitations on the322 amount of bets a bettor can place when such bettor has exhibited signs of problem323 gambling or a betting or gambling disorder. Such rules and regulations shall require324 H. B. 686 (SUB) - 13 - 25 LC 55 0586S the implementation of systems to monitor betting and provide individuals with325 guidance, information, and options when their betting may be problematic;326 (13) To keep a true and full record of all proceedings of the corporation under this article327 and preserve at the corporation's general office all books, documents, and papers of the328 corporation;329 (14) To adopt rules and regulations specific to the manner in which a licensee may330 advertise its business operations as authorized by this article; and331 (15) To comply with Code Section 50-27-14 as it relates to sports betting in order to332 encourage participation by minority businesses.333 (b) The corporation shall not have the power to prescribe a licensee's maximum or334 minimum payout or hold percentage.335 50-27-124.336 The corporation shall prescribe by rules and regulations:337 (1) The reserves that must be kept by licensees to comply with subparagraph (c)(6)(A)338 of Code Section 50-27-130 to pay off bettors;339 (2) Any insurance requirements for a licensee;340 (3) Minimum requirements by which each licensee shall exercise effective control over341 its internal fiscal affairs, including, without limitation, requirements for:342 (A) Safeguarding assets and revenues, including evidence of indebtedness;343 (B) Maintaining reliable records relating to accounts, transactions, profits and losses,344 operations, and events; and345 (C) Global risk management;346 (4) Requirements for internal and independent audits of licensees;347 (5) The manner in which periodic financial reports shall be submitted to the corporation348 from each licensee, including the financial information to be included in the reports;349 H. B. 686 (SUB) - 14 - 25 LC 55 0586S (6) The type of information deemed to be confidential financial or proprietary350 information that is not subject to any reporting requirements under this article;351 (7) Policies, procedures, and processes designed to mitigate the risk of cheating and352 money laundering; and353 (8) Any post-employment restrictions necessary to maintain the integrity of sports354 betting in this state.355 Part 2356 50-27-130.357 (a) Any person offering, operating, or managing sports betting in this state shall be358 licensed by the corporation.359 (b) The corporation shall issue licenses to qualified applicants able to meet the duties of360 a license holder under this article and that the corporation determines will best satisfy the361 following criteria:362 (1) Expertise in the business of online sports betting;363 (2) Integrity, sustainability, and safety of the online sports betting platform;364 (3) Past relevant experience of the applicant;365 (4) Advertising and promotional plans to increase and sustain revenue;366 (5) The amount of adjusted gross income and associated tax revenue that an applicant367 is projected to generate;368 (6) Demonstrated commitment to and plans for the promotion of responsible gaming;369 and370 (7) Capacity to increase the number of bettors on the applicant's platform.371 (c) An applicant for a license shall submit an application on a form in such manner and in372 accordance with such requirements as may be prescribed by the rules and regulations of the373 H. B. 686 (SUB) - 15 - 25 LC 55 0586S corporation. Such rules and regulations shall require, at a minimum, that the application374 include the following:375 (1) If the applicant is an entity, identification of the applicant's principal owners, board376 of directors, officers, and supervisory employees;377 (2) Information, documentation, and assurances as may be required by the corporation378 to establish by clear and convincing evidence the applicant's good character, honesty, and379 integrity, including, but not limited to, information pertaining to family, habits, character,380 reputation, criminal and arrest records, business activities, financial affairs, and business,381 professional, and personal associates, covering at least the ten-year period immediately382 preceding the filing of the application. No license shall be issued to an applicant, if such383 applicant or a principal owner of such applicant, has been convicted of, has been found384 guilty of, or has pled guilty to, regardless of adjudication and in any jurisdiction, any385 felony or any misdemeanor that is directly related to gambling, dishonesty, theft, or fraud;386 (3) Notice and a description of civil judgments obtained against the applicant pertaining387 to antitrust or security regulation laws of the federal government, this state, or any other388 state, jurisdiction, province, or country;389 (4) To the extent available, letters of reference or the equivalent from law enforcement390 agencies having jurisdiction of the applicant's place of residence and principal place of391 business. Each such letter of reference shall indicate that the law enforcement agency392 does not have any pertinent information concerning the applicant or, if such law393 enforcement agency does have information pertaining to the applicant, shall provide such394 information, to the extent permitted by law;395 (5) If the applicant has conducted sports betting operations in another jurisdiction, a396 letter of reference from the regulatory body that governs sports betting that specifies the397 standing of the applicant with such regulatory body; provided, however, that, if no such398 letter is received within 60 days of the request therefor, the applicant may submit a399 H. B. 686 (SUB) - 16 - 25 LC 55 0586S statement under oath that the applicant is or was, during the period such activities were400 conducted, in good standing with the regulatory body;401 (6) Information, documentation, and assurances concerning financial background and402 resources as may be required to establish by clear and convincing evidence the financial403 stability, integrity, and responsibility of the applicant, including, but not limited to, bank404 references, business and personal income and disbursement schedules, tax returns and405 other reports filed with governmental agencies, and business and personal accounting and406 check records and ledgers. Each applicant shall, in writing, authorize the examination of407 all bank accounts and records as may be deemed necessary by the corporation. The408 corporation may consider any relevant evidence of financial stability. In addition, the409 applicant shall:410 (A) Maintain a reserve of not less than $500,000.00 or the amount required to cover411 the outstanding liabilities for wagers accepted by the licensee, whichever is greater. 412 Outstanding liabilities for wagers shall mean the sum of patron account balances, the413 amount paid by patrons for wagers that have not yet been determined, and the amount414 owed but unpaid by licensees to patrons for wagers whose results have been415 determined. The reserve may take the form of a bond, an irrevocable letter of credit,416 payment processor reserves and receivables, cash or cash equivalents segregated from417 operational funds, guaranty letter, or a combination thereof. Such reserve shall be418 adequate to pay winning wagers to bettors when due. An applicant is presumed to have419 met this standard if the applicant maintains, on a daily basis, subject to when banks are420 open, a minimum reserve in an amount which is at least equal to the average daily421 minimum reserve, calculated on a monthly basis, for the corresponding month in the422 previous year;423 (B) Meet ongoing operating expenses which are essential to the maintenance of424 continuous and stable sports betting operations; and425 (C) Pay, as and when due, all state and federal taxes;426 H. B. 686 (SUB) - 17 - 25 LC 55 0586S (7) Information, documentation, and assurances as may be required to establish by clear427 and convincing evidence that the applicant has sufficient business ability and sports428 betting experience to establish the likelihood of the creation and maintenance of429 successful, efficient sports betting operations in this state;430 (8) Information, as required by the rules and regulations of the corporation, regarding the431 financial standing of the applicant;432 (9) A nonrefundable application fee and annual licensing fee as follows:433 (A) Applicants for a Type 1 sports betting license shall pay a nonrefundable434 application fee in the amount of $100,000.00 and an annual licensing fee in the amount435 of $1 million;436 (B) Applicants for an online sports betting services provider license shall pay a437 nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee438 of $100,000.00; provided, however, that an online sports betting services provider that439 applies for and obtains a Type 1 sports betting license pursuant to paragraph (3) of440 subsection (b) of Code Section 50-27-133 shall only be required to pay the441 nonrefundable application fee and annual licensing fee applicable to the applicant's442 Type 1 sports betting license; and443 (C) Applicants for a sports betting supplier license shall pay a nonrefundable444 application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;445 and446 (10) Any additional information, documents, or assurances required by the rules and447 regulations of the corporation.448 (d) The corporation shall review and approve or deny an application for a license not more449 than 90 days after receipt of an application.450 H. B. 686 (SUB) - 18 - 25 LC 55 0586S 50-27-131.451 (a) A licensee may renew its license by submitting an application on a form in such452 manner and in accordance with such requirements as may be prescribed by the rules and453 regulations of the corporation. A licensee shall submit the nonrefundable application fee454 prescribed under paragraph (9) of subsection (c) of Code Section 50-27-130 with its455 application for license renewal.456 (b) For each application for licensure or renewal of a license approved under this Code457 section, the amount of the application fee shall be credited toward the licensee's annual458 licensing fee and the licensee shall remit the balance of the annual license fee to the459 corporation upon approval of a license.460 (c) Each licensee shall have a continuing duty to promptly inform the corporation of any461 change in status relating to any information that may disqualify the licensee from holding462 a license under Code Section 50-27-132.463 (d) A professional sports governing body and a Type 1 eligible entity may enter into464 commercial agreements with an online sports betting services provider or other entities that465 provide for such professional sports governing body and Type 1 eligible entity to share in466 the amounts wagered or revenue derived from wagers on the sporting events of such467 professional sports governing body and Type 1 eligible entity. A professional sports468 governing body and a Type 1 eligible entity shall not be required to obtain any approval469 or other form of authorization from the corporation to enter into such commercial470 agreements or to lawfully accept such amounts or revenues. The corporation shall not471 prescribe any terms or conditions that are required to be included in such commercial472 agreements.473 (e) A person that holds a license or permit to engage in sports betting issued by another474 jurisdiction, either directly or through a parent company or affiliated subsidiary, may475 submit a request to the corporation for a temporary license for such person to immediately476 commence engagement in this state in sports betting. Such request shall include the477 H. B. 686 (SUB) - 19 - 25 LC 55 0586S application fee and annual licensing fee required under paragraph (9) of subsection (c) of478 Code Section 50-27-130.479 (f) Upon receiving a request for a temporary license, the chief executive officer shall480 review the request. If the chief executive officer reviews the request and determines that481 the person requesting the temporary license holds a license or permit issued by another482 jurisdiction to engage in sports betting and has paid the required application fee and annual483 licensing fee, the chief executive officer may authorize such person to engage in sports484 betting pursuant to this article under a temporary license for up to one year or until a final485 determination on such person's application is made, whichever is later.486 (g) All licenses issued under this article shall be valid for a term of five years, unless487 suspended or revoked as provided under this article.488 (h) The corporation may adopt rules and regulations prescribing the manner in which a489 license may be transferred and a fee for a license transfer.490 (i) A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully491 operating in this state and the licensee shall be the beneficiary of any interest accrued492 thereon.493 50-27-132.494 (a) The following persons shall not be eligible to apply for or obtain a license under this495 article:496 (1) A member of the board of directors or employee of the corporation or an employee497 of a corporation vendor; provided, however, that a corporation vendor as an entity may498 be eligible to apply for or obtain a license;499 (2) An employee of a professional sports team on which the applicant offers sports500 betting;501 H. B. 686 (SUB) - 20 - 25 LC 55 0586S (3) A coach of or player for a collegiate, professional, or Olympic sports team or sport502 for which the applicant offers sports betting, or an entity that has an affiliation or interest503 in such a sports team or sport;504 (4) An individual who is a member or employee of any professional sports governing505 body or sporting events operator for which the applicant offers sports betting;506 (5) An individual or entity with an owner, officer, or director who has been convicted of507 a crime of moral turpitude or similar degree as specified in rules and regulations508 promulgated by the corporation pursuant to this article;509 (6) A person having the ability to directly affect the outcome of a sporting event upon510 which the applicant offers sports betting;511 (7) A trustee or regent of a governing board of a public or private institution of higher512 education;513 (8) An individual prohibited by the rules or regulations of a professional sports514 governing body or sporting events operator of a collegiate sports team, league, or515 association from participating in sports betting;516 (9) A student or an employee of a public or private institution of higher education who517 has access to material nonpublic information concerning a student athlete or a sports518 team, unless such access to information is deemed incidental; and519 (10) Any other category of persons, established by the rules and regulations of the520 corporation, that, if licensed, would negatively affect the integrity of sports betting in this521 state.522 (b) An individual listed in paragraphs (2) through (10) of subsection (a) of this Code523 section may hold an ownership interest in an applicant or licensee without disqualifying524 the applicant or licensee from obtaining or holding a license; provided, however, that such525 an ownership interest of 25 percent or more shall require approval from the corporation. 526 In determining whether such an ownership interest shall be the basis of disqualification, the527 H. B. 686 (SUB) - 21 - 25 LC 55 0586S corporation shall consider whether such interest would negatively affect the integrity of528 sports betting in this state and any other factors the corporation shall deem relevant.529 50-27-133.530 (a) A Type 1 sports betting license authorizes the licensee, or its designated online sports531 betting services provider, to offer online sports betting. If a Type 1 eligible entity532 designates an online sports betting services provider, the designated online sports betting533 services provider shall instead fulfill the application and operational requirements for sports534 betting offered pursuant to this article. The corporation shall establish a procedure for a535 Type 1 eligible entity to designate an online sports betting provider.536 (b) The corporation shall issue not more than 16 Type 1 sports betting licenses as follows:537 (1) Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities538 defined in subparagraph (A) of paragraph (41) of Code Section 50-27-122; provided,539 however, that more than one license may be issued to an owner of multiple professional540 sports teams;541 (2) One Type 1 sports betting license shall be reserved for each of the Type 1 eligible542 entities defined in subparagraphs (B) through (E) of paragraph (41) of Code Section543 50-27-122; and544 (3) The corporation shall award the remaining seven Type 1 sports betting licenses to545 separate online sports betting services providers via a public procurement process.546 (c) The master sports betting licensee shall be deemed a Type 1 licensee and shall not be547 required to apply for a license; provided, however, that an online sports betting services548 provider engaged by the master sports betting licensee shall be required to apply for an549 online sports betting services provider license to operate online sports betting on behalf of550 the master sports betting licensee. Any proceeds derived from the master sports betting551 licensee from its activities as a Type 1 sports betting licensee shall be used in the same552 H. B. 686 (SUB) - 22 - 25 LC 55 0586S manner as and subject to the same requirements of lottery proceeds under Article 1 of this553 chapter.554 (d) A Type 1 eligible entity may contract with no more than one online sports betting555 services provider to operate online sports betting on behalf of the Type 1 eligible entity.556 (e) A Type 1 eligible entity shall provide written notice to the corporation of its intention557 to apply for a Type 1 sports betting license within 60 days of the effective date of this558 article. The failure of a Type 1 eligible entity to provide such written notice shall result in559 the permanent disqualification and prohibition of such Type 1 eligible entity from560 obtaining a Type 1 sports betting license.561 (f) A Type 1 sports betting licensee shall not offer online sports betting until the562 corporation has issued a Type 1 sports betting license to at least one online sports betting563 services provider via the public procurement process as determined by the corporation.564 (g) The corporation shall begin to accept applications for all 16 Type 1 sports betting565 licenses under subsection (b) of this Code section on the same date.566 (h) All applicants for the 16 Type 1 sports betting licenses under subsection (b) of this567 Code section that have submitted an application within 30 days of the date in which the568 corporation began to accept applications for Type 1 sports betting licenses shall be given569 an equal opportunity to first commence offering, conducting, or operating online sports570 betting in this state on the same day, and in any event not later than July 31, 2027.571 (i) A Type 1 eligible entity described in subparagraphs (A) through (D) of paragraph (41)572 of Code Section 50-27-122 that becomes a Type 1 sports betting licensee or designates an573 online sports betting services provider shall establish and maintain procedures with respect574 to sporting events which the Type 1 eligible entity participates in or administers to ensure575 avoidance of conflicts of interest in the operation of sports betting in this state.576 H. B. 686 (SUB) - 23 - 25 LC 55 0586S 50-27-134.577 (a) An online sports betting services provider shall offer online sports betting only in578 accordance with the provisions of this article and the rules and regulations adopted by the579 corporation under this article.580 (b) An online sports betting services provider shall obtain a license under this article581 before offering online sports betting pursuant to a contract with a Type 1 sports betting582 licensee or master sports betting licensee. An online sports betting services provider583 license shall entitle the holder to contract with no more than one Type 1 sports betting584 licensee.585 (c) If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a586 member of a league, association, or organization that prevents the holder from being587 subject to the regulatory control of the corporation or from otherwise operating under the588 license, such a Type 1 eligible entity may contractually appoint an online sports betting589 services provider for all aspects of corporation oversight and operations under the Type 1590 sports betting license.591 (d) Institutional investors shall be exempt from any and all qualification and disclosure592 requirements under this article or required under the rules and regulations promulgated by593 the corporation pursuant to this article. Such exemption shall extend to the owners,594 directors, and officers of such institutional investors.595 50-27-135.596 No licensee shall offer or accept any proposition bet on a collegiate sporting event.597 H. B. 686 (SUB) - 24 - 25 LC 55 0586S Part 3598 50-27-150.599 (a) Notwithstanding any other law to the contrary, there shall be imposed an annual600 privilege tax of 24 percent of the adjusted gross income derived from online sports betting601 in accordance with this Code section.602 (b) The privilege tax described in subsection (a) of this Code section shall be paid by the603 online sports betting services provider; provided, however, that, if a Type 1 sports betting604 licensee does not contract with an online sports betting services provider, such privilege605 tax shall be paid by such Type 1 sports betting licensee as provided for in subsection (c)606 of this Code section. This subsection shall not apply to the master sports betting licensee.607 (c) The privilege tax imposed under this Code section shall be paid monthly by the online608 sports betting services provider based on its monthly adjusted gross income for the609 immediately preceding calendar month. The privilege tax shall be paid to the corporation610 in accordance with rules and regulations promulgated by the corporation. If the online611 sports betting services provider's adjusted gross income for a month is a negative number,612 such online sports betting services provider may carry over such negative amount to613 subsequent months.614 (d) The state treasurer shall establish a separate trust fund in the state treasury that shall615 be known as the Georgia Sports Betting Proceeds Trust Fund. All moneys collected by the616 corporation from the privilege tax imposed under this Code section shall be, on the617 fifteenth day of each quarter, transferred by the corporation to the Georgia Sports Betting618 Proceeds Trust Fund. The state treasurer shall invest the moneys held in such trust fund619 in the same manner in which state funds are invested as authorized by the State Depository620 Board pursuant to Article 3 of Chapter 17 of Title 50. Interest earned by the moneys held621 in the Georgia Sports Betting Proceeds Trust Fund shall be accounted for separately and622 shall be credited to such trust fund to be disbursed as other moneys in the trust fund. All623 H. B. 686 (SUB) - 25 - 25 LC 55 0586S moneys held in the Georgia Sports Betting Proceeds Trust Fund shall be appropriated624 annually by the General Assembly for the programs and purposes set forth in Article I,625 Section II, Paragraph VIII(e) of the Constitution of Georgia.626 (e) With the exception of application fees and annual licensing fees imposed by627 paragraph (9) of subsection (c) of Code Section 50-27-130, the privilege tax imposed under628 this Code section is in lieu of all other state and local sales and use taxes, income taxes, and629 fees imposed on the operation of sports betting or on the proceeds from the operation of630 sports betting in this state. This subsection shall not exempt goods and services purchased631 by licensees in the ordinary course of business from the imposition of state or local sales632 and use taxes that would otherwise apply, nor shall it exempt licensees from the payment633 of taxes on real property owned by the licensee.634 50-27-151.635 All moneys collected by the corporation for fees, fines, and penalties imposed under this636 article, including, but not limited to, the application fees and annual licensing fees imposed637 by paragraph (9) of subsection (c) of Code Section 50-27-130; any fines imposed under638 Code Sections 50-27-160, 50-27-162, and 50-27-193; and any penalties imposed under639 Code Section 50-27-194, shall be separately accounted for and used to pay the operating640 expenses of the corporation associated with the administration of the provisions of this641 article; provided, however, that any such fees, fines, and penalties that are not used to pay642 such operating expenses shall, at the end of each fiscal year, be transferred by the643 corporation to the Georgia Sports Betting Proceeds Trust Fund less any amounts held by644 the corporation as an operating reserve, which such amounts shall not exceed the greater645 of $5 million or 10 percent of all moneys collected by the corporation for fees, fines, and646 penalties imposed under this article in the most recent fiscal year.647 H. B. 686 (SUB) - 26 - 25 LC 55 0586S 50-27-152.648 (a) Each Type 1 licensee or its sports betting services provider shall report to the649 corporation, no later than January 15 of each year:650 (1) The total amount of wagers received from bettors for the immediately preceding651 calendar year;652 (2) The adjusted gross income of the licensee for the immediately preceding calendar653 year; and654 (3) Any additional information required by the rules and regulations of the corporation655 deemed in the public interest or necessary to maintain the integrity of sports betting in656 this state.657 (b) A licensee shall promptly report to the corporation any information relating to:658 (1) The name of any newly elected officer or director of the board of the licensed entity;659 and660 (2) The acquisition by any person of 10 percent or more of any class of corporate stock.661 (c) With respect to information reported under subsection (b) of this Code section, a662 licensee shall include with such report a statement of any conflict of interest that may exist663 as a result of such election or acquisition.664 (d) Upon receiving a report under this Code section or subsection (b) of Code665 Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section666 50-27-193 to determine whether the licensee remains in compliance with this article.667 Part 4668 50-27-160.669 (a) No person shall knowingly:670 (1) Allow a minor to place a wager;671 H. B. 686 (SUB) - 27 - 25 LC 55 0586S (2) Offer, accept, or extend credit to a bettor in the form of a marker or promotional672 credit;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 (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 H. B. 686 (SUB) - 28 - 25 LC 55 0586S (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 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 H. B. 686 (SUB) - 29 - 25 LC 55 0586S 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 (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:745 (A) Indefinitely prohibited from placing a wager;746 (B) Required to forfeit the proceeds of any illegal wager;747 (C) Guilty of a misdemeanor; and748 H. B. 686 (SUB) - 30 - 25 LC 55 0586S (D) Fined not less than $500.00 nor more than $1,000.00;749 (2) For a second offense, shall be:750 (A) Required to forfeit the proceeds of any illegal wager;751 (B) Guilty of a misdemeanor; and752 (C) Fined not less than $5,000.00 or imprisoned for not less than one month nor more753 than five months, or both; and754 (3) For a third or subsequent offense, shall be:755 (A) Required to forfeit the proceeds of any illegal wager;756 (B) Guilty of a misdemeanor of a high and aggravated nature; and757 (C) Fined not less than $7,500.00 or imprisoned for not less than three months, or both.758 50-27-163.759 (a) The corporation shall by rules and regulations prohibit betting on injuries, penalties,760 the outcome of player discipline rulings or replay reviews, and any other type or form of761 betting under this article that is contrary to public policy or unfair to bettors.762 (b)(1) A professional sports governing body or sporting events operator may submit to763 the corporation in writing, by providing notice in such form and manner as the764 corporation may require, a request to restrict, limit, or prohibit a certain type, form, or765 category of sports betting with respect to its sporting events, if the professional sports766 governing body or sporting events operator believes that such type, form, or category of767 sports betting with respect to its sporting events may undermine the integrity or perceived768 integrity of such professional sports governing body or sporting events operator or its769 sporting events. The corporation shall request comments from sports betting licensees770 and sports betting services provider licensees on all such requests it receives.771 (2) After giving due consideration to all comments received, the corporation shall, upon772 demonstration of good cause from the requestor that such type, form, or category of773 sports betting is likely to undermine the integrity or perceived integrity of such774 H. B. 686 (SUB) - 31 - 25 LC 55 0586S professional sports governing body or sporting events operator or its sporting events,775 grant the request. The corporation shall respond to a request concerning a particular776 sporting event before the start of the event, or if it is not feasible to respond before such777 time, no later than seven days after the request is made. If the corporation determines that778 the requestor is more likely than not to prevail in successfully demonstrating good cause779 for its request, the corporation may provisionally grant the request of the professional780 sports governing body or sporting events operator until the corporation makes a final781 determination as to whether the requestor has demonstrated good cause. Absent such a782 provisional grant by the corporation, sports betting licensees may continue to offer sports783 betting on sporting events that are the subject of such a request during the pendency of784 the corporation's consideration of the applicable request.785 Part 5786 50-27-170.787 (a) Prior to placing a wager with a licensee via online sports betting, a bettor shall register788 and establish a player account with the licensee remotely during which the bettor shall789 attest that the individual meets the requirements to place a wager with a licensee in this790 state. Prior to verification of a bettor's identity in accordance with this Code section, a791 licensee shall not allow the bettor to place a wager, make a deposit, or process a withdrawal792 via online sports betting. A licensee shall implement commercially and technologically793 reasonable procedures to prevent access to sports betting by minors on its online sports794 betting platforms. A licensee may use information obtained from third parties to verify that795 an individual is authorized to open an account, place wagers, and make deposits and796 withdrawals.797 H. B. 686 (SUB) - 32 - 25 LC 55 0586S (b) Each licensee shall adopt a registration policy to ensure that all bettors utilizing online798 sports betting are authorized to place a wager with a licensee within this state. Such policy799 shall include, without limitation, commercially reasonable mechanisms to:800 (1) Verify the identity and age of the registrant;801 (2) Verify that the registrant is not knowingly prohibited from placing a wager under802 Code Section 50-27-162; and803 (3) Obtain the following information from the registrant:804 (A) Legal name;805 (B) Date of birth;806 (C) Physical address other than a post office box;807 (D) Phone number;808 (E) A unique username; and809 (F) An active email account.810 (c) Each licensee may in its discretion require a bettor to provide the licensee with a signed811 and notarized document attesting that the bettor is qualified to engage in sports betting812 under this article as part of the registration policy of the licensee.813 (d) A bettor shall not register more than one account with a licensee, and each licensee814 shall use commercially and technologically reasonable means to ensure that each bettor is815 limited to one account.816 (e) Each licensee, in addition to complying with state and federal law pertaining to the817 protection of the private, personal information of registered bettors, shall use all other818 commercially and technologically reasonable means to protect such information consistent819 with industry standards.820 (f) A bettor may fund an account through:821 (1) Electronic bank transfer of funds, including such transfers through third parties;822 (2) Debit cards;823 (3) Online and mobile payment systems that support online money transfers; and824 H. B. 686 (SUB) - 33 - 25 LC 55 0586S (4) Any other method approved by the rules and regulations of the corporation.825 (g)(1) Licensees shall not allow bets to be placed until first verifying the identity of the826 bettor pursuant to this Code section and by the rules promulgated by the corporation. 827 Further, and pursuant to the rules promulgated by the corporation, licensees shall828 establish safeguards, including, but not limited to, access notifications and similar829 security safeguards, to protect each bettor's account. Such safeguards shall include,830 without limitation, the utilization of a two-factor authentication method each time a bettor831 accesses their account. As used in this paragraph, the term 'two-factor authentication832 method' means an authentication method that requires entry of a username and password833 followed by entry of another method of identification.834 (2) If a licensee determines that the information provided by a bettor to make a deposit835 or process a withdrawal is inaccurate or incapable of verification or violates the policies836 and procedures of the licensee, the licensee shall, within ten days, require the submission837 of additional information that can be used to verify the identity of such bettor.838 (3) If such information is not provided or does not result in verification of the bettor's839 identity, the licensee shall:840 (A) Immediately suspend the bettor's account and shall not allow the bettor to place841 wagers;842 (B) Retain any winnings attributable to the bettor; and843 (C) Refund the affected balance of deposits made to the account to the source of such844 deposit or by issuance of a check.845 (h) A licensee shall utilize geofencing technology to ensure that online sports betting is846 available only to bettors who are physically located in this state. Servers, including the use847 of backup servers, may be located outside of this state, consistent with federal law. To the848 extent required by federal law, a licensee shall maintain in this state the servers it uses to849 accept wagers on a sporting event placed by bettors located in this state.850 H. B. 686 (SUB) - 34 - 25 LC 55 0586S (i) Each licensee shall clearly and conspicuously display on its public website a statement851 indicating that it is illegal for a person under 21 years of age to engage in sports betting in852 this state.853 (j) The corporation shall promulgate rules and regulations for purposes of regulating sports854 betting via online sports betting.855 50-27-171.856 (a) Licensees shall allow bettors to limit their betting activity with the licensee by, at a857 minimum, giving bettors the opportunity to place limits on the amounts deposited, the858 amounts wagered, and the amount of time spent wagering. Licensees shall take reasonable859 steps to prevent bettors from overriding their self-imposed responsible gambling limits.860 (b) The corporation shall promulgate rules and regulations that require a licensee to861 implement responsible sports betting programs. Such rules and regulations shall require862 a licensee to develop a strategic implementation plan with details as to:863 (1) The use of player data and technology to aid in identifying potential problem864 gamblers;865 (2) The use of automated triggers to identify and manage accounts of potential problem866 gamblers; and867 (3) The levels of intervention and education provided to identified at-risk players, which868 shall include at a minimum:869 (A) A first phase involving communications with the individual in order to educate the870 individual on the availability of various responsible gaming features and resources871 offered by the licensee;872 (B) A second phase that includes a video tutorial displayed to the individual either as873 one or multiple videos that provides education on the features and resources available;874 and875 H. B. 686 (SUB) - 35 - 25 LC 55 0586S (C) A third phase, when warranted, that includes access to a responsible gaming876 professional provided by the licensee to advise the individual on possible corrective877 actions to address at-risk behavior.878 (c) The corporation shall work with national and local organizations to provide services879 for individuals with problem gambling or a betting or gambling disorder and to establish880 prevention initiatives to reduce the number of individuals with problem gambling or a881 betting or gambling disorder, including, but not limited to, utilizing currently established882 programs for problem gambling or betting or gambling disorders.883 (d) All sports betting advertisements shall prominently display messaging designed to884 prevent problem gambling and provide information about how to access resources related885 to problem gambling, including the National Council on Problem Gambling's helpline or886 other similar toll-free helpline.887 (e) The corporation shall annually generate a report outlining activities with respect to888 problem gambling and betting or gambling disorders, including, but not limited to,889 descriptions of programs, grants, and other resources made available; the number of890 individuals seeking assistance; the number of individuals who reported completing891 programs and therapies; and the rate of recidivism, if known to the corporation. The892 corporation shall file the annual report with the Governor, President of the Senate, and the893 Speaker of the House of Representatives and shall publish such report on its public website894 no later than January 30 of each year.895 50-27-172.896 (a) Each licensee shall adopt and adhere to a written, comprehensive policy outlining its897 rules governing the acceptance of wagers and payouts. Such policy and rules must be898 approved by the corporation prior to the acceptance of a wager by a licensee. Such policy899 and rules shall be readily available to a bettor on the licensee's public website.900 (b) The corporation shall promulgate rules and regulations regarding:901 H. B. 686 (SUB) - 36 - 25 LC 55 0586S (1) The manner in which a licensee accepts wagers from and issues payouts to bettors,902 including payouts in excess of $10,000.00; and903 (2) Requirements for reporting suspicious wagers.904 Part 6905 50-27-180.906 (a) Licensees shall not be required to use official league data or official event data for907 determining the results of:908 (1) Tier 1 sports wagers on events of any organization, whether headquartered in the909 United States or elsewhere; or910 (2) Tier 2 sports wagers on events of organizations that are not headquartered in the911 United States.912 (b)(1) A professional sports governing body or sporting events operator headquartered913 in the United States may notify the corporation that it desires licensees to use official914 league data or official event data for determining the results of tier 2 sports wagers on its915 sporting events. A notification under this subsection shall be made in the form and916 manner as the corporation shall require. The corporation shall notify each licensee within917 five days after receipt of such notification from a professional sports governing body or918 sporting events operator. If a professional sports governing body or sporting events919 operator does not notify the corporation of its desire to supply official league data or920 official event data, licensees are not required to use official league data or official event921 data for determining the results of any tier 2 wagers on sporting events of that922 professional sports governing body or sporting events operator.923 (2) Within 60 days after the corporation notifies each licensee as provided under924 paragraph (1) of this subsection, or within a longer period as may be agreed between such925 professional sports governing body or sporting events operator and the applicable926 H. B. 686 (SUB) - 37 - 25 LC 55 0586S licensee, each such licensee shall be required to use only official league data or official927 event data, as applicable, to determine the results of tier 2 sports wagers on sporting928 events sanctioned by such professional sports governing body or sporting events operator,929 except when:930 (A) The professional sports governing body or sporting events operator, or a designee931 thereof, is unable to provide a feed of official league data or official event data to932 determine the results of a particular type of tier 2 sports wager, in which case licensees933 are not required to use official league data for determining the results of the applicable934 tier 2 sports wager until the data feed becomes available on commercially reasonable935 terms and conditions; or936 (B) A licensee is able to demonstrate to the corporation that the professional sports937 governing body or sporting events operator, or a designee thereof, will not provide a938 feed of official league data or official event data to the licensee on commercially939 reasonable terms and conditions.940 (3) The following is a nonexclusive list of factors the corporation may consider in941 evaluating whether official league data or official event data is being offered on942 commercially reasonable terms and conditions for purposes of subparagraphs (A) and (B)943 of paragraph (2) of this subsection:944 (A) The extent to which licensees have purchased the same or similar official league945 data or official event data on the same or similar terms, particularly in jurisdictions946 where such purchase was not required by law or was required by law but only if offered947 on commercially reasonable terms;948 (B) The nature and quantity of the official league data or official event data, including,949 without limitation, its speed, accuracy, reliability, and overall quality as compared to950 comparable nonofficial data;951 (C) The quality and complexity of the process used to collect and distribute the official952 league data or official event data as compared to comparable nonofficial data;953 H. B. 686 (SUB) - 38 - 25 LC 55 0586S (D) The availability of tier 2 official league data of a professional sports governing954 body or tier 2 official event data of a sporting events operator to a licensee from more955 than one authorized source;956 (E) Market information, including, without limitation, price and other terms and957 conditions, regarding the purchase of comparable data by licensees for the purpose of958 settling sports wagers, for use in this state or other jurisdictions; and959 (F) The extent to which professional sports governing bodies or sporting events960 operators, or designees thereof, have made available to licensees the data used to settle961 the results of tier 2 sports wagers and any terms and conditions relating to the use of962 such data.963 (4) Notwithstanding any provision to the contrary in this Code section, including,964 without limitation, paragraph (2) of this subsection, while the corporation is evaluating965 whether a professional sports governing body or a sporting events operator, or the966 designee thereof, will provide a feed of official league data or official event data on967 commercially reasonable terms and conditions pursuant to paragraph (3) of this968 subsection, licensees are not required to use official league data or official event data for969 determining the results of tier 2 sports wagers.970 (5) The corporation shall make a determination under paragraph (3) of this subsection971 within 60 days after the licensee notifies the corporation that it desires to demonstrate that972 the professional sports governing body or sporting events operator, or a designee thereof,973 will not provide a feed of official league data or official event data to such licensee on974 commercially reasonable terms and conditions.975 H. B. 686 (SUB) - 39 - 25 LC 55 0586S Part 7976 50-27-190.977 Members of the corporation or designated employees thereof may, during normal business978 hours, enter the premises of any facility of a licensee, or a third party utilized by the979 licensee to operate and conduct business in accordance with this article, for the purpose of980 inspecting books and records kept as required by this article to ensure that the licensee is981 in compliance with this article or to make any other inspection of the premises necessary982 to protect the public interests of this state and its consumers.983 50-27-191.984 (a) The corporation, licensees, corporation vendors, and vendors shall use commercially985 reasonable efforts to cooperate with investigations conducted by any professional sports986 governing body, any sporting events operator, and law enforcement agencies, including,987 but not limited to, using commercially reasonable efforts to provide or facilitate the988 provision of betting information.989 (b) Licensees shall promptly report to the corporation any information relating to:990 (1) Abnormal betting activity or patterns that may indicate a concern with the integrity991 of a sporting event; and992 (2) Conduct that corrupts the betting outcome of a sporting event for purposes of993 financial gain, including match fixing.994 (c) Licensees shall, as soon as is practicable, report any information relating to conduct995 described in subsection (b) of this Code section to the professional sports governing body996 or sporting events operator.997 (d) Licensees shall use commercially reasonable efforts to maintain, in real time and at the998 account level, anonymized information regarding a bettor; the amount and type of bet; the999 time the bet was placed; the location of the bet, including the internet protocol address if1000 H. B. 686 (SUB) - 40 - 25 LC 55 0586S applicable; the outcome of the bet; and records of abnormal betting activity for three years1001 after the sporting event occurs. The corporation may request such information in the form1002 and manner required by the rules and regulations of the corporation. As used in this1003 subsection, the term 'real time' means on a commercially reasonable periodic interval.1004 (e) All records, documents, and information received by the corporation pursuant to this1005 Code section shall be considered investigative records of a law enforcement agency, shall1006 not be subject to Article 4 of Chapter 18 of this title, and shall not be released under any1007 condition without the permission of the person providing such records, documents, or1008 information.1009 (f) Nothing in this Code section shall require a sports betting licensee to provide any1010 information that is prohibited by federal, state, or local laws or rules and regulations,1011 including, without limitation, laws and rules and regulations relating to privacy and1012 personally identifiable information.1013 (g) If a professional sports governing body or sporting events operator has notified the1014 corporation that access to the information described in subsection (d) of this Code section1015 for wagers placed on its sporting events is necessary to monitor the integrity of its sporting1016 events and represents to the corporation that it specifically uses such data for the purpose1017 of monitoring the integrity of sporting events of such professional sports governing body1018 or sporting events operator, then licensees shall share, in a commercially reasonable1019 frequency, form, and manner, with the professional sports governing body or sporting1020 events operator, or a designee thereof, the same information the licensee is required to1021 maintain under subsection (d) of this Code section with respect to sports wagers on such1022 a body's or operator's sporting events. A professional sports governing body or sporting1023 events operator, or a designee thereof, shall use information received under this subsection1024 for integrity-monitoring purposes only and shall not use such information for commercial1025 or any other purposes. Nothing in this subsection shall require a licensee to provide any1026 information that is prohibited by federal, state, or local laws, rules, or regulations,1027 H. B. 686 (SUB) - 41 - 25 LC 55 0586S including, but not limited to, laws, rules, or regulations relating to privacy and personally1028 identifiable information.1029 50-27-192.1030 The corporation shall assist in any investigations by law enforcement to determine whether:1031 (1) A licensee is accepting wagers from minors or other persons ineligible to place1032 wagers under Code Section 50-27-162; and1033 (2) An individual is unlawfully accepting wagers from another individual without a1034 license or at a location in violation of this article.1035 50-27-193.1036 (a) The corporation may investigate and conduct a hearing with respect to a licensee upon1037 information and belief that the licensee has violated the provisions of this article or upon1038 the receipt of a credible complaint from any person that a licensee has violated the1039 provisions of this article. The corporation shall conduct investigations and hearings in1040 accordance with rules and regulations adopted by the corporation.1041 (b) If the corporation determines that a licensee has violated any provision of this article1042 or any rules and regulations of the corporation, the corporation may:1043 (1) Suspend, revoke, or refuse to renew a license; or1044 (2) Impose an administrative fine not to exceed $25,000.00 per violation or a total of1045 $50,000.00 for violations arising out of the same transaction or occurrence, or both.1046 (c) The corporation shall promulgate rules and regulations establishing a schedule of1047 administrative fines that may be assessed in accordance with subsection (b) of this Code1048 section for each violation of this article; provided, however, that, if the corporation finds1049 that:1050 H. B. 686 (SUB) - 42 - 25 LC 55 0586S (1) A licensee is knowingly accepting wagers from minors or other persons ineligible to1051 place wagers in this state, the corporation shall impose a fine against the licensee as1052 follows:1053 (A) For a first offense, $1,000.00;1054 (B) For a second offense, $2,000.00; and1055 (C) For a third or subsequent offense, $5,000.00; or1056 (2) An individual is unlawfully accepting wagers from another individual without a1057 license, the corporation shall impose a fine against the individual as follows:1058 (A) For a first offense, $10,000.00;1059 (B) For a second offense, $15,000.00; and1060 (C) For a third or subsequent offense, $25,000.00.1061 (d) The corporation may refer conduct that it reasonably believes is a violation of Article 21062 of Chapter 12 of Title 16 to the appropriate law enforcement agency.1063 50-27-194.1064 (a) Any person that violates any provision of this article shall be liable for a civil penalty1065 of not more than $5,000.00 per violation, not to exceed $50,000.00 for violations arising1066 out of the same transaction or occurrence, which shall accrue to the corporation and may1067 be recovered in a civil action brought by or on behalf of the corporation.1068 (b) The corporation may seek and obtain an injunction in a court of competent jurisdiction1069 for purposes of enforcing this article.1070 (c) Costs shall not be taxed against the corporation or this state for actions brought under1071 this article.1072 H. B. 686 (SUB) - 43 - 25 LC 55 0586S 50-27-195.1073 The corporation may issue subpoenas to compel the attendance of witnesses and the1074 production of relevant books, accounts, records, and documents for purposes of carrying1075 out its duties under this article.1076 50-27-196.1077 (a) A licensee or other individual aggrieved by a final decision or action of the corporation1078 may appeal such decision or action to the Superior Court of Fulton County.1079 (b) The Superior Court of Fulton County shall hear appeals from decisions or actions of1080 the corporation and, based upon the record of the proceedings before the corporation, may1081 reverse the decision or action of the corporation only if the appellant proves the decision1082 or action to be:1083 (1) Clearly erroneous;1084 (2) Arbitrary and capricious;1085 (3) Procured by fraud;1086 (4) A result of substantial misconduct by the corporation; or1087 (5) Contrary to the United States Constitution, the Constitution of Georgia, or this article.1088 (c) The Superior Court of Fulton County may remand an appeal to the corporation to1089 conduct further hearings.1090 50-27-197.1091 (a) It shall be unlawful for any person, directly or indirectly, to knowingly receive, supply,1092 broadcast, display, or otherwise transmit material nonpublic information for the purpose1093 of betting on a sporting event or influencing another individual's or entity's wager on a1094 sporting event.1095 (b) This Code section shall not apply to the dissemination of public information as news,1096 entertainment, or advertising.1097 H. B. 686 (SUB) - 44 - 25 LC 55 0586S (c) Any person in violation of this Code section shall be indefinitely prohibited from1098 placing a wager, be required to forfeit the proceeds of any illegal wager, and be guilty of1099 a misdemeanor."1100 PART III1101 SECTION 3-1.1102 Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated,1103 relating to gambling, is amended by revising paragraph (1) of Code Section 16-12-20,1104 relating to definitions, as follows:1105 "(1) 'Bet' means an agreement that, dependent upon chance even though accompanied1106 by some skill, one stands to win or lose something of value. A bet does not include:1107 (A) Contracts of indemnity or guaranty or life, health, property, or accident insurance;1108 or1109 (B) An offer of a prize, award, or compensation to the actual contestants in any bona1110 fide contest for the determination of skill, speed, strength, or endurance or to the owners1111 of animals, vehicles, watercraft, or aircraft entered in such contest; or1112 (C) Any consideration paid to participate in online sports betting offered pursuant to1113 Article 4 of Chapter 27 of Title 50."1114 SECTION 3-2.1115 Said part is further amended by revising Code Section 16-12-27, relating to advertisement1116 or solicitation for participation in lotteries, as follows:1117 "16-12-27.1118 (a) It shall be unlawful for any person, partnership, firm, corporation, or other entity to1119 sell, distribute, televise, broadcast, or disseminate any advertisement, television or radio1120 commercial, or any book, magazine, periodical, newspaper, or other written or printed1121 H. B. 686 (SUB) - 45 - 25 LC 55 0586S matter containing an advertisement or solicitation for participation in any lottery declared1122 to be unlawful by the laws of this state unless such advertisement, commercial, or1123 solicitation contains or includes the words 'void in Georgia' printed or spoken so as to be1124 clearly legible or audible to persons viewing or hearing such advertisement, commercial,1125 or solicitation.1126 (b) Any person, partnership, firm, corporation, or other entity violating subsection (a) of1127 this Code section shall be guilty of a misdemeanor.1128 (c) This Code section shall not apply to any advertisement or solicitation for participation1129 in online sports betting by any person licensed under Article 4 of Chapter 27 of Title 501130 that is concerning such licensee's lawful activities."1131 SECTION 3-3.1132 Said part is further amended by revising Code Section 16-12-28, relating to communicating1133 gambling information, as follows:1134 "16-12-28.1135 (a) A person who knowingly communicates information as to bets, betting odds, or1136 changes in betting odds or who knowingly installs or maintains equipment for the1137 transmission or receipt of such information with the intent to further gambling commits the1138 offense of communicating gambling information.1139 (b) A person who commits the offense of communicating gambling information, upon1140 conviction thereof, shall be punished by imprisonment for not less than one nor more than1141 five years or by a fine not to exceed $5,000.00, or both.1142 (c) This Code section shall not apply to the activities authorized under Article 4 of1143 Chapter 27 of Title 50."1144 H. B. 686 (SUB) - 46 - 25 LC 55 0586S PART IV1145 SECTION 4-1.1146 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is1147 amended by revising paragraph (55) of Code Section 48-8-3, relating to exemptions from1148 state sales and use tax, as follows:1149 "(55) The sale of lottery tickets authorized by Chapter 27 of Title 50 or wagers1150 authorized by Article 4 of Chapter 27 of Title 50;"1151 PART V1152 SECTION 5-1.1153 This Act shall become effective on January 1, 2027, following the ratification of an1154 amendment to the Constitution of Georgia authorizing the General Assembly to provide by1155 law for the operation and regulation of sports betting activities; provided, however, to the1156 extent that this Act conflicts with law in effect at the time of ratification, this Act and such1157 amendment shall control, and to the extent such law is not in conflict, the law in effect at the1158 time of ratification shall control and shall remain in full force and effect. If such amendment1159 is not so ratified, then this Act shall stand automatically repealed.1160 SECTION 5-2.1161 All laws and parts of laws in conflict with this Act are repealed.1162 H. B. 686 (SUB) - 47 -