Concerns Remain in GA as Vote Approaches
April 1, 2022
Georgia was moving earlier in the week, but has slowed down to address concerns. As of this moment, we expect the bills to be brought up as soon as tomorrow for a House vote, but a number of concerns remain which could unravel the bill from getting done. Session concludes on 04/04.
Key Issues:
- Revisions are being made to the constitutional amendment bill that would remove the possibility of casino expansion. This is double edged sword as it will appease social conservatives, but it will alienate many democrats who want the revenues/jobs from casino legalization. Any bill will need bi-partisan support.
- It is also problematic because it means that only the OSBs and maybe the sports teams will be incentivized to support the voter referendum. Given the state’s historical opposition to gambling as well as high-profile state-wide elections (including Gov and U.S. Senate), this could be a costly endeavor to successfully campaign for the bill.
- The sports betting enabling bill is far from ideal for operators. While it would create up to 18 market access points, it has a 20% tax rate with no promo deduction and a $1M annual licensing fee. For suppliers there would be a $100K annual licensing fee.
- There are efforts underway to address some if not all of these issues including lowering the tax rate and annual fee, and addressing promo deductions with them being phased out over time.