Georgia DFS legalization effort stalls

A bill that would codify daily fantasy sports (DFS) activity as legal – removing it from its current ‘gray area’ status – failed to advance out of Georgia’s House Rules Committee last week.

February 29 was the last day in the state for bills to advance out of committee and move to the chamber of the legislature, meaning that House Bill 1329 will now not be acted upon this year.

HB 1329 did not advance out of the House Committee on Economic Development and Tourism until Tuesday, February 27, leaving little time to advocate House Rules members for the bill in the midst of a hectic deadline for countless other bills under consideration.

The last remaining option for supporters brings with it a certain irony. DFS operators – led by DraftKings and FanDuel – previously spent a number of years trying to disassociate themselves from Nevada sportsbooks, given that the state had a virtual monopoly on legal sports betting in the US pre-PASPA’.

It will now, therefore, at least be a little less awkward if the DFS issue winds up ‘piggybacking’ onto a sports betting bill that cleared the Senate on February 27 and landed for the consideration of House members.

DFS operators have long contended that because participants choose from among dozens of players across an entire league, there is a far greater amount of skill involved than a traditional sports bet of choosing one team against another, with a point spread also available to level the field even if one team is considered superior.

The aforementioned sports betting bill would authorize a statewide vote on sports betting legalization in November, and it’s still possible the bill could be amended in the coming weeks to include DFS language as well.

Backers of HB 1329 noted that an estimated 250,000 Georgia residents already participate in DFS play annually, and legalization would mean the state could collect taxes on the revenue while also providing formal consumer protection.

Supporters also estimate that at a tax rate of 20%, the state could collect $40m in revenue each year from the DFS operators, with the funds going to support education and treatment programs for problem gambling.

Meanwhile, Licensing fees charged to DFS operators would produce an estimated additional $8m in the first year of legalization.

The sports betting bill pending in the House also projects a 20% tax with the funds earmarked for education.

Up to 16 licenses for sports wagering would be awarded, including one each to Atlanta’s five major professional sports teams: the Falcons (NFL), Braves (MLB), Atlanta United (MLS), Hawks (NBA), and Dream (WNBA).