Georgia DFS Legislation: New Bill Introduced
Legislation Would Allow 'Pick'Em' Contests
While the Georgia Senate is wrestling with a bill that would allow sports gambling in the Peach State, a new DFS bill was introduced in the State House of Representatives. It would regulate and allow daily fantasy sports. The Georgia DFS legislation, HB 1329, allows the ‘pick’em’ games some states have cracked down on.
But it also comes at a price. Fantasy sports operators would be taxed at 20% of adjusted gross fantasy contest receipts. There are also licenses and fees involved with being able to offer games in Georgia. The bill has bi-partisan support, however, and was introduced by two Democrats and two Republicans. That could be a good sign for its chance of passing.
The Georgia DFS legislation describes fantasy games as “any online fantasy or simulated game or contest of skill with an entry fee.” The bill says any company that knowingly allows a minor to play or targets minors in advertising could be liable for a $25,000 fine for the first offense.
But the bill also defines minors as anybody under the age of 19. That would allow anybody 19 and older to play the games.
The Georgia Lottery Corporation would be tasked with overseeing the fantasy games in the state. Revenue generated from daily fantasy games will go to cover the cost incurred by the Lottery and education.
The passage of the bill would be good news for the Georgia-based PrizePicks. PrizePicks, which runs pick’em games, was forced out of several states in the last month.
Both Florida and Arkansas said PrizePicks games resembled sports betting too much to be allowed, but several other operators were also targeted. Not just PrizePicks. But getting the green light in Georgia would be a good start for the pick’em game operators.
Different License Fees For Operators
One of the unique aspects about the Georgia DFS legislation is how the licensing fees are determined by the state. The bill breaks down DFS companies into “large operators” and “all other applicants.” Large operators will be required to pay a $100,000 nonrefundable application fee and an annual license fee of $1 million.
Smaller DFS operators will have no application fee and an annual license fee of just $5,000. The bill defines large operators as those who “has adjusted gross fantasy contests receipts greater than 125 or equal to $5 million for the preceding 12 months.”
The legislation will require certain aspects of the Official Code of Georgia to be revised. It’s not as easy as simply passing a new law. There are current laws regarding the solicitation of participation in lottery games and communicating sports betting news that will have to be amended. But the bill creators tried to anticipate the needed changes and highlight where changes will need to be made to the existing laws in the state.
If the bill becomes law, it will increase the competition in the state. That could lead to the DFS companies offering player incentives similar to the sports betting bonuses offered by sportsbooks. That’s always good news for gamblers.
For gambling news, odds analysis, and more, visit Point Spreads Sports Magazine.
