Fantasy sports enthusiasts in Georgia are reeling from some disappointing news.
HB 1329, which would have established a regulatory framework for daily fantasy sports (DFS) in the state, failed to advance out of the Georgia House Rules Committee.
Let’s examine the crucial aspects contributing to the bill’s obstruction and consider the potential implications this setback may hold for the online sportsbooks industry.
Fantasy Fumble
Rep. Trey Kelley sponsored the bill that would have legalized and taxed DFS operators, such as DraftKings and FanDuel, and created a Fantasy Contest Division within the Georgia Lottery Corporation to oversee the industry. The bill also aimed to protect consumers by setting age limits, ensuring fair play and requiring audits and background checks for DFS operators.
It moved through the House Committee on Economic Development and Tourism with relative ease before hitting a roadblock in the Rules Committee. The opposition came from some lawmakers who argue that DFS is a form of gambling and should be subject to a constitutional amendment.
Since the bill did not advance on what was the last day for bills to cross over from one chamber to another, that means this particular vehicle for regulating fantasy sports will not be moving forward this legislative session.
Georgia Remains a “Gray State”
Georgia resides in a regulatory gray area concerning daily fantasy sports, where contests are neither explicitly legal nor completely prohibited. Operators offer contests without regulation or taxation. Despite this legal ambiguity, an estimated 250,000 Georgia residents participated in DFS last year.
According to a 2019 study by the Fantasy Sports and Gaming Association, Georgia ranked fourth in the nation in terms of DFS participation, with more than 1.6 million players.
Georgia Sports Betting Bill Could Include DFS
The good news for DFS fans is that despite HB 1329’s demise, it does not mean that the efforts to regulate Daily Fantasy Sports are over.
There is still a chance that the fantasy sports language could be added to another bill that has already crossed over. SB386, the sports betting bill that passed the Senate, is the one everyone is watching.
SB 386 aims to legalize sports betting in Georgia. It passed the Senate and is now on its way to the House of Representatives, where provisions to include DFS could be added.
If the House also approves SB 386, Georgia voters will decide on sports betting in the November 2024 general election.
Georgia Sports Teams Support Daily Fantasy Sports
The Georgia Professional Sports Integrity Alliance is a coalition of the state’s four major professional sports teams. The group is urging the House to consider adding the fantasy sports language to the sports betting bill.
They argue that DFS is a game of skill, not chance, and benefits the state’s economy and sports industry.
What’s Next for Georgia DFS Bill?
Whether the House will agree to amend the sports betting bill to include DFS regulation remains to be seen. The legislative session is scheduled to end on April 2, 2024, so there is not much time left for the lawmakers to act.
Fantasy sports fans in Georgia will have to wait and see if their favorite pastime will finally get the legal recognition and protection it deserves.
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