HB686: HB686 Georgia Sports Betting Act; enact

26 LC 56 0648S 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 fo r 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 reg ulate 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 pr ohibit 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 fee s 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 - 26 LC 56 0648S 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 facilit y 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 ope rate 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 - 26 LC 56 0648S Chapter 13 of this title, the 'Georgia Administrative Procedure Act.' Notwithstanding any43 other provision of law to the contrary, (1) the promulgation of any form of licensure,44 rules, regulations, policies, or procedures under Article 3 of this chapter, and (2) all45 administrative hearings regarding Article 3 of this chapter, ex cept as otherwise46 specifically provided by law, shall be subject to and governed by the provisions of47 Chapter 13 of this title. Hearings under Code Section 50-27-10 2 shall be held in48 accordance with the provisions of Part 1 of Article 1 of Chapter 9 of Title 9, the 'Georgia49 Arbitration Code.'"50 PART II51 SECTION 2-1.52 Said title is further amended by adding a new article to Chapter 27, relating to the "Georgia53 Lottery for Education Act," to read as follows:54 "ARTICLE 455 Part 156 50-27-120.57 This article shall be known and may be cited as the 'Georgia Sports Betting Act.'58 50-27-121.59 The General Assembly finds that:60 (1) Sports betting shall be overseen and regulated, and may al so be offered, by the61 Georgia Lottery Corporation in a manner that provides continuing entertainment to the62 public, maximizes revenues, protects consumers, and ensures tha t sports betting is63 operated in this state with integrity and dignity and free of political influence;64 H. B. 686 (SUB) - 3 - 26 LC 56 0648S (2) The corporation shall be accountable to the General Assembly and to the public for65 the management and oversight of sports betting in this state through a system of audits66 and reports;67 (3) The ability to offer sports betting in this state under a license issued in accordance68 with this article constitutes a taxable privilege and not a right;69 (4) Net proceeds of sports betting conducted pursuant to this article shall be used for the70 purposes authorized by Article I, Section II, Paragraph VIII of the Constitution of71 Georgia; and72 (5) In accordance with Code Section 50-27-2, sports betting sh all be conducted in a73 manner so as to safeguard the fiscal soundness of the state, to enhance public welfare, and74 to support the funding au thorized by Article I, Section II, Par agraph VIII(c) of the75 Constitution of Georgia.76 50-27-122.77 As used in this article, the term:78 (1) 'Adjusted gross income' means the total of all moneys paid to a licensee as wagers79 minus federal excise taxes and minus the total amount paid out to winning bettors,80 including the cash value of merchandise awarded as winnings.81 (2) 'Applicant' means any person that applies for a license under this article.82 (3) 'Bettor' means an individual who is:83 (A) Physically present in this state when placing a wager with a licensee;84 (B) Twenty-one years of age or older; and85 (C) Not prohibited from placing a wager or bet under Code Section 50-27-162.86 (4) 'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves87 to account for losses suffered by a licensee and owed to bettors.88 (5) 'Cheating' means improving the chances of winning or altering the outcome through89 deception, interference, or manipulation of a sporting event or of any equipment,90 H. B. 686 (SUB) - 4 - 26 LC 56 0648S including software, pertaining to or used in relation to the eq uipment used for or in91 connection with the sporting event on which wagers are placed o r invited. Such term92 shall include match fixing and attempts and conspiracy to cheat.93 (6) 'Collegiate sporting event' means a sporting or athletic e vent involving a sports or94 athletic team of a public or private institution of higher education.95 (7) 'Esports event' means an organized video game competition between players who96 play individually or as teams.97 (8) 'Fantasy or simulated contest' means a game or event in which one or more players98 compete based on winning outcomes that reflect the relative knowledge and skill of the99 players and are determined predominately by accumulated statist ical results of the100 performance of individuals, including, but not limited to, athletes in sporting events.101 (9) 'Fixed-odds betting' means bets made at predetermined odds or on the spread where102 the return to the bettor is unaffected by any later change in odds or the spread.103 (10) 'Futures wager' means a wager made on the occurrence of a n event in the future104 relating to a sporting event.105 (11) 'Institutional investor' means:106 (A) A retirement fund administered by a public agency for the exclusive benefit of107 federal, state, or local public employees;108 (B) An investment company registered under the Investment Company Act of 1940;109 (C) A chartered or licensed life insurance company or property and casualty insurance110 company;111 (D) A banking and other chartered or licensed lending institution;112 (E) An investment advisor registered under the Investment Advisers Act of 1940; or113 (F) A pension investment board.114 (12) 'License' means any of the licenses issued by the corporation under this article.115 (13) 'Licensee' means a person that holds a license issued by the corporation under this116 article.117 H. B. 686 (SUB) - 5 - 26 LC 56 0648S (14) 'Master sports betting licensee' means the Georgia Lottery Corporation.118 (15) 'Material nonpublic information' means information that has not been disseminated119 publicly concerning an athlete, contestant, prospective contest ant, or athletic team,120 including, without limitation, confidential information related to medical conditions or121 treatment, physical or mental health or conditioning, physical therapy or recovery,122 discipline, sanctions, academic status, education records, eligibility, playbooks, signals,123 schemes, techniques, game plans, practices, strategies, assessm ents, systems, drills, or124 recordings of practices or other athletic activities.125 (16) 'Merchandise' means any goods or services provided to bettors free of charge, at a126 discounted rate, or in the form of a rebate or credit.127 (17) 'Minor' means an individual who is less than 21 years of age.128 (18) 'Moneyline wager' means the fixed odds in relation to a dollar amount that a team129 or person participating in a sporting event will win outright regardless of the spread.130 (19) 'Official event data' means statistics, results, outcomes, and other data related to a131 sporting event obtained pursuant to an agreement with the relev ant sporting events132 operator whose corporate headquarters is based in the United States or an entity expressly133 authorized by such sporting events operator to provide such information to licensees for134 purposes of determining the outcome of tier 2 sports wagers on such sporting event.135 (20) 'Official league data' means statistics, results, outcomes, and other data related to136 a sporting event obtained pursuant to an agreement with the relevant professional sports137 governing body whose corporate headquarters is based in the United States or an entity138 expressly authorized by such professional sports governing body to provide such139 information to licensees for purposes of determining the outcome of tier 2 sports wagers.140 (21) 'Online sports betting' means a wager on a sporting event that is placed via the141 internet through any electronic device and accepted through an online sports betting142 platform.143 H. B. 686 (SUB) - 6 - 26 LC 56 0648S (22) 'Online sports betting platform' means the combination of hardware, software, and144 data networks used to manage, administer, or control online spo rts betting and any145 associated wagers accessible by any electronic means.146 (23) 'Online sports betting services provider' means a person that contracts with the147 master sports betting licensee or a Type 1 sports betting licen see under Code Section148 50-27-133 to operate online sports betting on behalf of such licensee and that is licensed149 by the corporation.150 (24) 'Over/under wager' means a single wager that predicts whether the combined score151 of the two persons or teams engaged in a sporting event will be lower or higher than a152 predetermined number.153 (25) 'Parlay wager' means a single wager that incorporates two or more individual bets154 for purposes of earning a higher payout if each bet incorporated within the wager wins.155 (26) 'Person' means an individual or entity.156 (27) 'Principal owner' means a person that owns an interest of 10 percent or more of the157 entity.158 (28) 'Professional sporting event' means an athletic or sporting event involving at least159 two competitors who have the opportunity to receive compensation for participating in160 such event.161 (29) 'Professional sports governing body' means the organization, league, or association162 whose corporate headquarters is based in the United States that oversees a sport and163 prescribes final rules and enforces codes of conduct with respe ct to such sport and164 participants therein.165 (30) 'Professional sports team' means a major league professional team:166 (A) Based in this state;167 (B) That plays baseball, football, men's basketball, soccer, or women's basketball; and168 (C) Whose regular season games have had the highest attendance for its respective169 professional sport in the state during the past five years.170 H. B. 686 (SUB) - 7 - 26 LC 56 0648S (31) 'Proposition wager' means a wager on a single specific action, statistic, occurrence,171 or nonoccurrence to be determined during a sporting event and includes any such action,172 statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of173 the professional sporting event to which it relates.174 (32) 'Sporting event' means any:175 (A) Professional sporting event, including motor sports sancti oned by a national or176 international organization or association;177 (B) Collegiate sporting event;178 (C) Olympic sporting or athletic event;179 (D) Sporting or athletic event sanctioned by a national or international organization or180 association;181 (E) Sporting or athletic event conducted or organized by a sporting events operator;182 (F) Esports event; or183 (G) Other event authorized by the corporation.184 Such term shall not include a nonprofessional, noncollegiate, or non-Olympic sporting185 or athletic event if the majority of the participants are under the age of 18 years and shall186 not include any Special Olympics sporting or athletic event.187 (33) 'Sporting events operator' means a person that conducts o r organizes a sporting188 event for athletes or other participants that is not held or sanctioned as an official sporting189 event of a professional sports governing body.190 (34) 'Sports betting' means online sports betting.191 (35) 'Sports betting equipment' means any of the following tha t is directly used in192 connection with the operation of sports betting:193 (A) Any mechanical, electronic, or other device, mechanism, or equipment;194 (B) Any software, application, components, or other goods; or195 (C) Anything to be installed or used on a personal electronic device.196 H. B. 686 (SUB) - 8 - 26 LC 56 0648S (36)(A) 'Sports betting supplier' means a person that provides sports betting equipment197 necessary for the creation of sports betting markets and the de termination of bet198 outcomes, directly to any licensee involved in the acceptance of bets, including any of199 the following:200 (i) Providers of data feeds and odds services;201 (ii) Platform providers;202 (iii) Risk management providers:203 (iv) Integrity monitoring providers; and204 (v) Other providers of sports betting supplier services as det ermined by the205 corporation.206 (B) Such term shall not include a professional sports governing body that:207 (i) Provides official league data concerning its own sporting event to a sports betting208 licensee solely on that basis; or209 (ii) Provides raw statistical match data to one or more design ated and licensed210 suppliers of data feeds and odds services solely on that basis.211 (37) 'Spread' means the predicted scoring differential between two persons or teams212 engaged in a sporting event.213 (38) 'Supervisory employee' means a principal owner or employee having the authority214 to act on behalf of a licensee whose judgment is relied upon to manage and advance the215 sports betting business operations of a licensee.216 (39) 'Tier 1 sports wager' means a sports wager that is determ ined solely by the final217 score or final outcome of the sporting event and is placed before the sporting event has218 begun.219 (40) 'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.220 (41) 'Type 1 eligible entity' means any of the following:221 (A) Any professional sports team;222 H. B. 686 (SUB) - 9 - 26 LC 56 0648S (B) A professional sports governing body that holds one or mor e sanctioned annual223 golf tournaments on a national tour of professional golf in this state, and has held one224 or more of the same or different sanctioned annual golf tournaments on a national tour225 of professional golf in this state for at least 30 years;226 (C) The owner of a facility in this state that has held an ann ual invitational golf227 tournament for professional and amateur golfers for at least 30 years;228 (D) The owner of a facility located in this state that hosts a utomobile races on a229 national association for stock car racing national tour or a wh olly owned for-profit230 subsidiary of the owner of such a facility, if the owner is a n onprofit corporation or231 nonprofit organization; and232 (E) The Georgia Lottery Corporation.233 (42) 'Type 1 sports betting licensee' means the master sports betting licensee, an online234 sports betting services provider awarded a Type 1 license via t he public procurement235 process by the master sports betting licensee, or a Type 1 elig ible entity licensed or236 authorized by the corporation to directly or indirectly offer online sports betting.237 (43) 'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown238 outcome of one or more sporting events or portions of sporting events. Such term shall239 include single-game wagers, futures wagers, tier 1 or tier 2 wagers, teaser wagers, parlay240 wagers, over/under wagers, moneyline wagers, pools, exchange wa gering, in-game241 wagering, in-play wagers, proposition wagers, straight wagers, fixed-odds betting, and242 any other bet or wager approved by the corporation. Such term shall not include a243 pari-mutuel bet or wager or an entry fee paid to participate in a fantasy or simulated244 contest.245 H. B. 686 (SUB) - 10 - 26 LC 56 0648S 50-27-123.246 (a) The corporation shall have all powers and duties necessary to carry out the provisions247 of this article and to exercise the control of sports betting in this state as authorized by this248 article. Such powers and duties shall include, but shall not be limited to, the following:249 (1) To have jurisdiction, supervision, and regulatory authorit y over sports betting,250 including, but not limited to, regulation, licensure, and offer ing of sports betting on251 mobile applications available state wide via the internet and through a limited number of252 licenses to be awarded to Type 1 sports betting licensees;253 (2) To appoint and employ such persons as the corporation deems essential to perform254 its duties under this article and to ensure that such sports betting is conducted with order255 and the highest integrity. Such employees shall possess such authority and perform such256 duties as the corporation shall prescribe or delegate to them. Such employees shall be257 compensated as provided by the corporation;258 (3) To enter upon, investigate, and have free access to all pl aces of business of any259 licensee under this article and to compel the production of any books, ledgers, documents,260 records, memoranda, or other information of any licensee to ens ure such licensee's261 compliance with the rules and regulations promulgated by the corporation pursuant to this262 article;263 (4) To promulgate any rules and regulations as the corporation deems necessary and264 proper to administer the provisions of this article; provided, however, that the initial rules265 and regulations governing sports betting shall be promulgated, provided for a period of266 public comment, and adopted by the corporation within 90 days of the effective date of267 this article. Such initial rules and regulations and all other rules and regulations of the268 corporation promulgated and adopted pursuant to this article sh all not be subject to269 Chapter 13 of this title, the 'Georgia Administrative Procedure Act';270 (5) To issue subpoenas for the attendance of witnesses before the corporation, administer271 oaths, and compel production of records or other documents and testimony of witnesses272 H. B. 686 (SUB) - 11 - 26 LC 56 0648S whenever, in the judgment of the corporation, it is necessary t o do so for the effectual273 discharge of the duties of the corporation under this article;274 (6) To compel any person licensed by the corporation to file with the corporation such275 data, documents, and information as shall appear to the corporation to be necessary for276 the performance of the duties of the corporation under this art icle, including, but not277 limited to, financial statements and information relative to st ockholders and all others278 with a pecuniary interest in such person;279 (7) To prescribe the manner in which books and records of persons licensed or permitted280 by the corporation under this article shall be kept;281 (8) To enter into arrangements with any foreign or domestic go vernment or282 governmental agency for the purposes of exchanging information or performing any other283 act to better ensure the proper conduct of betting under this article;284 (9) To order such audits, in addition to those otherwise requi red by this article, as the285 corporation deems necessary and desirable;286 (10) Upon the receipt of a complaint of an alleged criminal vi olation of this article, to287 immediately report such complaint to the appropriate law enforc ement agency with288 jurisdiction to investigate criminal activity;289 (11) To provide for the reporting of the applicable amount of state and federal income290 tax of persons claiming a prize or payoff for a winning wager under this article;291 (12) To establish and administer programs for providing assistance to individuals with292 problem gambling or a betting or gambling disorder, including, but not limited to:293 (A) Educating potential gamblers of methods and types of bets and fairly informing294 potential gamblers of the odds or likelihood of winning such bets;295 (B) Establishing and administering programs for educating potential gamblers about296 responsible gambling, the warning signs of problem gambling or betting or gambling297 disorders and how to prevent and treat problem gambling or bett ing or gambling298 disorders;299 H. B. 686 (SUB) - 12 - 26 LC 56 0648S (C) Developing and funding responsible gaming education campai gns coupled with300 prevention and education efforts within communities that raise awareness of potential301 signs or risk factors of problem gambling or betting or gambling disorders;302 (D) Encouraging the use of harm-minimizing measures by bettors, such as excluding303 or limiting oneself from obtaining credit extensions, making cr edit card or cashless304 payments, cashing checks, or making automated teller machine withdrawals, as well as305 utilizing limit-setting tools and personal data and information to make informed306 decisions about gambling;307 (E) Promulgating rules and regulations that enable bettors to self-limit with a licensee308 and self-exclude from sports betting activities state wide. Any such rules or regulations309 related to self-exclusion shall require the individual seeking self-exclusion to provide310 identifying information, including, at a minimum, full name, address, date of birth, and311 social security number;312 (F) Adopting processes for individuals to express concerns rel ated to problem313 gambling or betting or gambling disorders to the corporation;314 (G) Developing state-wide advertising guidelines to ensure that the marketing of sports315 betting is not targeted to minors and does not include content, themes, and promotions316 that have special appeal to individuals with problem gambling or a betting or gambling317 disorder;318 (H) Requiring the electronic posting of signs or notifications on online sports betting319 platforms that bear the 1-800-GAMBLER toll-free number, which provides or directs320 callers to assistance and resources for individuals with problem gambling or a betting321 or gambling disorder; and322 (I) Requiring, through the promulgation of rules and regulatio ns, limitations on the323 amount of bets a bettor can place when such bettor has exhibite d signs of problem324 gambling or a betting or gambling disorder. Such rules and reg ulations shall require325 H. B. 686 (SUB) - 13 - 26 LC 56 0648S the implementation of systems to monitor betting and provide in dividuals with326 guidance, information, and options when their betting may be problematic;327 (13) To keep a true and full record of all proceedings of the corporation under this article328 and preserve at the corporation's general office all books, documents, and papers of the329 corporation;330 (14) To adopt rules and regulations specific to the manner in which a licensee may331 advertise its business operations as authorized by this article; and332 (15) To comply with Code Section 50-27-14 as it relates to spo rts betting in order to333 encourage participation by minority businesses.334 (b) The corporation shall not have the power to prescribe a li censee's maximum or335 minimum payout or hold percentage.336 50-27-124.337 The corporation shall prescribe by rules and regulations:338 (1) The reserves that must be kept by licensees to comply with subparagraph (c)(6)(A)339 of Code Section 50-27-130 to pay off bettors;340 (2) Any insurance requirements for a licensee;341 (3) Minimum requirements by which each licensee shall exercise effective control over342 its internal fiscal affairs, including, without limitation, requirements for:343 (A) Safeguarding assets and revenues, including evidence of indebtedness;344 (B) Maintaining reliable records relating to accounts, transactions, profits and losses,345 operations, and events; and346 (C) Global risk management;347 (4) Requirements for internal and independent audits of licensees;348 (5) The manner in which periodic financial reports shall be submitted to the corporation349 from each licensee, including the financial information to be included in the reports;350 H. B. 686 (SUB) - 14 - 26 LC 56 0648S (6) The type of information deemed to be confidential financia l or proprietary351 information that is not subject to any reporting requirements under this article;352 (7) Policies, procedures, and processes designed to mitigate t he risk of cheating and353 money laundering; and354 (8) Any post-employment restrictions necessary to maintain the integrity of sports355 betting in this state.356 Part 2357 50-27-130.358 (a) Any person offering, operating, or managing sports betting in this state shall be359 licensed by the corporation.360 (b) The corporation shall issue licenses to qualified applicants able to meet the duties of361 a license holder under this article and that the corporation determines will best satisfy the362 following criteria:363 (1) Expertise in the business of online sports betting;364 (2) Integrity, sustainability, and safety of the online sports betting platform;365 (3) Past relevant experience of the applicant;366 (4) Advertising and promotional plans to increase and sustain revenue;367 (5) The amount of adjusted gross income and associated tax rev enue that an applicant368 is projected to generate;369 (6) Demonstrated commitment to and plans for the promotion of responsible gaming;370 and371 (7) Capacity to increase the number of bettors on the applicant's platform.372 (c) An applicant for a license shall submit an application on a form in such manner and in373 accordance with such requirements as may be prescribed by the rules and regulations of the374 H. B. 686 (SUB) - 15 - 26 LC 56 0648S corporation. Such rules and regulations shall require, at a minimum, that the application375 include the following:376 (1) If the applicant is an entity, identification of the applicant's principal owners, board377 of directors, officers, and supervisory employees;378 (2) Information, documentation, and assurances as may be required by the corporation379 to establish by clear and convincing evidence the applicant's good character, honesty, and380 integrity, including, but not limited to, information pertaining to family, habits, character,381 reputation, criminal and arrest records, business activities, financial affairs, and business,382 professional, and personal associates, covering at least the ten-year period immediately383 preceding the filing of the application. No license shall be issued to an applicant, if such384 applicant or a principal owner of such applicant, has been convicted of, has been found385 guilty of, or has ple d guilty to, regardless of adjudication an d in any jurisdiction, any386 felony or any misdemeanor that is directly related to gambling, dishonesty, theft, or fraud;387 (3) Notice and a description of civil judgments obtained against the applicant pertaining388 to antitrust or security regulation laws of the federal government, this state, or any other389 state, jurisdiction, province, or country;390 (4) To the extent available, letters of reference or the equivalent from law enforcement391 agencies having jurisdiction of the applicant's place of residence and principal place of392 business. Each such letter of reference shall indicate that th e law enforcement agency393 does not have any pertinent information concerning the applican t or, if such law394 enforcement agency does have information pertaining to the applicant, shall provide such395 information, to the extent permitted by law;396 (5) If the applicant has conducted sports betting operations i n another jurisdiction, a397 letter of reference from the regulatory body that governs sports betting that specifies the398 standing of the applicant with such regulatory body; provided, however, that, if no such399 letter is received within 60 days of the request therefor, the applicant may submit a400 H. B. 686 (SUB) - 16 - 26 LC 56 0648S statement under oath that the applicant is or was, during the period such activities were401 conducted, in good standing with the regulatory body;402 (6) Information, documentation, and assurances concerning fina ncial background and403 resources as may be required to establish by clear and convincing evidence the financial404 stability, integrity, and responsibility of the applicant, including, but not limited to, bank405 references, business and personal income and disbursement sched ules, tax returns and406 other reports filed with governmental agencies, and business and personal accounting and407 check records and ledgers. Each applicant shall, in writing, authorize the examination of408 all bank accounts and records as may be deemed necessary by the corporation. The409 corporation may consider any relevant evidence of financial sta bility. In addition, the410 applicant shall:411 (A) Maintain a reserve of not less than $500,000.00 or the amo unt required to cover412 the outstanding liabilities for wagers accepted by the licensee , whichever is greater. 413 Outstanding liabilities for wagers shall mean the sum of patron account balances, the414 amount paid by patrons for wagers that have not yet been determined, and the amount415 owed but unpaid by licensees to patrons for wagers whose result s have been416 determined. The reserve may take the form of a bond, an irrevocable letter of credit,417 payment processor reserves and receivables, cash or cash equivalents segregated from418 operational funds, guaranty letter, or a combination thereof. Such reserve shall be419 adequate to pay winning wagers to bettors when due. An applicant is presumed to have420 met this standard if the applicant maintains, on a daily basis, subject to when banks are421 open, a minimum reserve in an amount which is at least equal to the average daily422 minimum reserve, calculated on a monthly basis, for the corresp onding month in the423 previous year;424 (B) Meet ongoing operating expenses which are essential to the maintenance of425 continuous and stable sports betting operations; and426 (C) Pay, as and when due, all state and federal taxes;427 H. B. 686 (SUB) - 17 - 26 LC 56 0648S (7) Information, documentation, and assurances as may be required to establish by clear428 and convincing evidence that the applicant has sufficient busin ess ability and sports429 betting experience to establish the likelihood of the creation and maintenance of430 successful, efficient sports betting operations in this state;431 (8) Information, as required by the rules and regulations of the corporation, regarding the432 financial standing of the applicant;433 (9) A nonrefundable application fee and annual licensing fee as follows:434 ( A ) A p p l i c a n t s f o r a T y p e 1 s p o r t s b e t t i n g l i c e n s e s h a l l p a y a nonrefundable435 application fee in the amount of $100,000.00 and an annual licensing fee in the amount436 of $1 million;437 (B) Applicants for an online sports betting services provider license shall pay a438 nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee439 of $100,000.00; provided, however, that an online sports betting services provider that440 applies for and obtains a Type 1 sports betting license pursuan t to paragraph (3) of441 subsection (b) of Code Section 50-27-133 shall only be required to pay the442 nonrefundable application fee and annual licensing fee applicab le to the applicant's443 Type 1 sports betting license; and444 (C) Applicants for a sports betting supplier license shall pay a nonrefundable445 application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;446 and447 (10) Any additional information, documents, or assurances requ ired by the rules and448 regulations of the corporation.449 (d) The corporation shall review and approve or deny an application for a license not more450 than 90 days after receipt of an application.451 H. B. 686 (SUB) - 18 - 26 LC 56 0648S 50-27-131.452 (a) A licensee may renew its license by submitting an applicat ion on a form in such453 manner and in accordance with such requirements as may be prescribed by the rules and454 regulations of the corporation. A licensee shall submit the nonrefundable application fee455 prescribed under paragraph (9) of subsection (c) of Code Sectio n 50-27-130 with its456 application for license renewal.457 (b) For each application for licensure or renewal of a license approved under this Code458 section, the amount of the application fee shall be credited to ward the licensee's annual459 licensing fee and the licensee shall remit the balance of the a nnual license fee to the460 corporation upon approval of a license.461 (c) Each licensee shall have a continuing duty to promptly inform the corporation of any462 change in status relating to any information that may disqualify the licensee from holding463 a license under Code Section 50-27-132.464 (d) A professional sports governing body and a Type 1 eligible entity may enter into465 commercial agreements with an online sports betting services provider or other entities that466 provide for such professional sports governing body and Type 1 eligible entity to share in467 the amounts wagered or revenue derived from wagers on the sport ing events of such468 professional sports governing body and Type 1 eligible entity. A professional sports469 governing body and a Type 1 eligible entity shall not be requir ed to obtain any approval470 or other form of authorization from the corporation to enter in to such commercial471 agreements or to lawfully accept such amounts or revenues. The corporation shall not472 prescribe any terms or conditions that are required to be inclu ded in such commercial473 agreements.474 (e) A person that holds a license or permit to engage in sport s betting issued by another475 jurisdiction, either directly or through a parent company or af filiated subsidiary, may476 submit a request to the corporation for a temporary license for such person to immediately477 commence engagement in this state in sports betting. Such requ est shall include the478 H. B. 686 (SUB) - 19 - 26 LC 56 0648S application fee and annual licensing fee required under paragraph (9) of subsection (c) of479 Code Section 50-27-130.480 (f) Upon receiving a request for a temporary license, the chie f executive officer shall481 review the request. If the chief executive officer reviews the request and determines that482 the person requesting the temporary license holds a license or permit issued by another483 jurisdiction to engage in sports betting and has paid the required application fee and annual484 licensing fee, the chief executive officer may authorize such p erson to engage in sports485 betting pursuant to this article under a temporary license for up to one year or until a final486 determination on such person's application is made, whichever is later.487 (g) All licenses issued under this article shall be valid for a term of five years, unless488 suspended or revoked as provided under this article.489 (h) The corporation may adopt rules and regulations prescribin g the manner in which a490 license may be transferred and a fee for a license transfer.491 (i) A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully492 operating in this state and the licensee shall be the beneficia ry of any interest accrued493 thereon.494 50-27-132.495 (a) The following persons shall not be eligible to apply for or obtain a license under this496 article:497 (1) A member of the board of directors or employee of the corporation or an employee498 of a corporation vendor; provided, however, that a corporation vendor as an entity may499 be eligible to apply for or obtain a license;500 (2) An employee of a professional sports team on which the app licant offers sports501 betting;502 H. B. 686 (SUB) - 20 - 26 LC 56 0648S (3) A coach of or player for a collegiate, professional, or Olympic sports team or sport503 for which the applicant offers sports betting, or an entity that has an affiliation or interest504 in such a sports team or sport;505 (4) An individual who is a member or employee of any professio nal sports governing506 body or sporting events operator for which the applicant offers sports betting;507 (5) An individual or entity with an owner, officer, or director who has been convicted of508 a crime of moral turpitude or similar degree as specified in ru les and regulations509 promulgated by the corporation pursuant to this article;510 (6) A person having the ability to directly affect the outcome of a sporting event upon511 which the applicant offers sports betting;512 (7) A trustee or regent of a governing board of a public or private institution of higher513 education;514 (8) An individual prohibited by the rules or regulations of a professional sports515 governing body or sporting events operator of a collegiate spor ts team, league, or516 association from participating in sports betting;517 (9) A student or an employee of a public or private institution of higher education who518 has access to material nonpublic information concerning a stude nt athlete or a sports519 team, unless such access to information is deemed incidental; and520 (10) Any other category of persons, established by the rules a nd regulations of the521 corporation, that, if licensed, would negatively affect the integrity of sports betting in this522 state.523 (b) An individual listed in paragraphs (2) through (10) of sub section (a) of this Code524 section may hold an ownership interest in an applicant or licen see without disqualifying525 the applicant or licensee from obtaining or holding a license; provided, however, that such526 an ownership interest of 25 percent or more shall require appro val from the corporation. 527 In determining whether such an ownership interest shall be the basis of disqualification, the528 H. B. 686 (SUB) - 21 - 26 LC 56 0648S corporation shall consider whether such interest would negative ly affect the integrity of529 sports betting in this state and any other factors the corporation shall deem relevant.530 50-27-133.531 (a) A Type 1 sports betting license authorizes the licensee, or its designated online sports532 betting services provider, to offer online sports betting. If a Type 1 eligible entity533 designates an online sports betting services provider, the designated online sports betting534 services provider shall instead fulfill the application and operational requirements for sports535 betting offered pursuant to this article. The corporation shal l establish a procedure for a536 Type 1 eligible entity to designate an online sports betting provider.537 (b) The corporation shall issue not more than 16 Type 1 sports betting licenses as follows:538 (1) Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities539 defined in subparagraph (A) of paragraph (41) of Code Section 5 0-27-122; provided,540 however, that more than one license may be issued to an owner of multiple professional541 sports teams;542 (2) One Type 1 sports betting license shall be reserved for ea ch of the Type 1 eligible543 entities defined in subparagraphs (B) through (E) of paragraph (41) of Code Section544 50-27-122; and545 (3) The corporation shall award the remaining seven Type 1 spo rts betting licenses to546 separate online sports betting services providers via a public procurement process.547 (c) The master sports betting licensee shall be deemed a Type 1 licensee and shall not be548 required to apply for a license; provided, however, that an onl ine sports betting services549 provider engaged by the master sports betting licensee shall be required to apply for an550 online sports betting services provider license to operate online sports betting on behalf of551 the master sports betting licensee. Any proceeds derived from the master sports betting552 licensee from its activities as a Type 1 sports betting license e shall be used in the same553 H. B. 686 (SUB) - 22 - 26 LC 56 0648S manner as and subject to the same requirements of lottery proceeds under Article 1 of this554 chapter.555 (d) A Type 1 eligible e ntity may contract with no more than on e online sports betting556 services provider to operate online sports betting on behalf of the Type 1 eligible entity.557 (e) A Type 1 eligible entity shall provide written notice to the corporation of its intention558 to apply for a Type 1 sports betting license within 60 days of the effective date of this559 article. The failure of a Type 1 eligible entity to provide such written notice shall result in560 the permanent disqualification and prohibition of such Type 1 e ligible entity from561 obtaining a Type 1 sports betting license.562 (f) A Type 1 sports betting licensee shall not offer online sp orts betting until the563 corporation has issued a Type 1 sports betting license to at least one online sports betting564 services provider via the public procurement process as determined by the corporation.565 (g) The corporation shall begin to accept applications for all 16 Type 1 sports betting566 licenses under subsection (b) of this Code section on the same date.567 (h) All applicants for the 16 Type 1 sports betting licenses u nder subsection (b) of this568 Code section that have submitted an application within 30 days of the date in which the569 corporation began to accept applications for Type 1 sports betting licenses shall be given570 an equal opportunity to first commence offering, conducting, or operating online sports571 betting in this state on the same day, and in any event not later than July 31, 2027.572 (i) A Type 1 eligible entity described in subparagraphs (A) through (D) of paragraph (41)573 of Code Section 50-27-122 that becomes a Type 1 sports betting licensee or designates an574 online sports betting services provider shall establish and maintain procedures with respect575 to sporting events which the Type 1 eligible entity participates in or administers to ensure576 avoidance of conflicts of interest in the operation of sports betting in this state.577 H. B. 686 (SUB) - 23 - 26 LC 56 0648S 50-27-134.578 (a) An online sports betting services provider shall offer onl ine sports betting only in579 accordance with the provisions of this article and the rules and regulations adopted by the580 corporation under this article.581 (b) An online sports betting services provider shall obtain a license under this article582 before offering online sports betting pursuant to a contract wi th a Type 1 sports betting583 licensee or master sports betting licensee. An online sports b etting services provider584 license shall entitle the holder to contract with no more than one Type 1 sports betting585 licensee.586 (c) If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a587 member of a league, association, or organization that prevents the holder from being588 subject to the regulatory control of the corporation or from otherwise operating under the589 license, such a Type 1 eligible entity may contractually appoin t an online sports betting590 services provider for all aspects of corporation oversight and operations under the Type 1591 sports betting license.592 (d) Institutional investors shall be exempt from any and all q ualification and disclosure593 requirements under this article or required under the rules and regulations promulgated by594 the corporation pursuant to this article. Such exemption shall extend to the owners,595 directors, and officers of such institutional investors.596 50-27-135.597 No licensee shall offer or accept any proposition bet on a collegiate sporting event.598 H. B. 686 (SUB) - 24 - 26 LC 56 0648S Part 3599 50-27-150.600 (a) Notwithstanding any other law to the contrary, there shall be imposed an annual601 privilege tax of 27.5 percent of the adjusted gross income deri ved from online sports602 betting in accordance with this Code section.603 (b) The privilege tax described in subsection (a) of this Code section shall be paid by the604 online sports betting services provider; provided, however, that, if a Type 1 sports betting605 licensee does not contract with an online sports betting servic es provider, such privilege606 tax shall be paid by such Type 1 sports betting licensee as pro vided for in subsection (c)607 of this Code section. This subsection shall not apply to the master sports betting licensee.608 (c) The privilege tax imposed under this Code section shall be paid monthly by the online609 sports betting services provider based on its monthly adjusted gross income for the610 immediately preceding calendar month. The privilege tax shall be paid to the corporation611 in accordance with rules and regulations promulgated by the cor poration. If the online612 sports betting services provider's adjusted gross income for a month is a negative number,613 such online sports betting services provider may carry over suc h negative amount to614 subsequent months.615 (d) The state treasurer shall establish a separate trust fund in the state treasury that shall616 be known as the Georgia Sports Betting Proceeds Trust Fund. All moneys collected by the617 corporation from the privilege tax imposed under this Code sect ion shall be, on the618 fifteenth day of each quarter, transferred by the corporation to the Georgia Sports Betting619 Proceeds Trust Fund. The state treasurer shall invest the moneys held in such trust fund620 in the same manner in which state funds are invested as authorized by the State Depository621 Board pursuant to Article 3 of Chapter 17 of Title 50. Interest earned by the moneys held622 in the Georgia Sports Betting Proceeds Trust Fund shall be accounted for separately and623 shall be credited to such trust fund to be disbursed as other moneys in the trust fund. All624 H. B. 686 (SUB) - 25 - 26 LC 56 0648S moneys held in the Georgia Sports Betting Proceeds Trust Fund s hall be appropriated625 annually by the General Assembly for the programs and purposes set forth in Article I,626 Section II, Paragraph VIII(e) of the Constitution of Georgia.627 (e) With the exception of application fees and annual licensin g fees imposed by628 paragraph (9) of subsection (c) of Code Section 50-27-130, the privilege tax imposed under629 this Code section is in lieu of all other state and local sales and use taxes, income taxes, and630 fees imposed on the operation of sports betting or on the proce eds from the operation of631 sports betting in this state. This subsection shall not exempt goods and services purchased632 by licensees in the ordinary course of business from the imposition of state or local sales633 and use taxes that would otherwise apply, nor shall it exempt licensees from the payment634 of taxes on real property owned by the licensee.635 50-27-151.636 All moneys collected by the corporation for fees, fines, and penalties imposed under this637 article, including, but not limited to, the application fees and annual licensing fees imposed638 by paragraph (9) of subsection (c) of Code Section 50-27-130; a ny fines imposed under639 Code Sections 50-27-160, 50-27-162, and 50-27-193; and any pena lties imposed under640 Code Section 50-27-194, shall be separately accounted for and used to pay the operating641 expenses of the corporation associated with the administration of the provisions of this642 article; provided, however, that any such fees, fines, and penalties that are not used to pay643 such operating expenses shall, at the end of each fiscal year, be transferred by the644 corporation to the Georgia Sports Betting Proceeds Trust Fund less any amounts held by645 the corporation as an operating reserve, which such amounts shall not exceed the greater646 of $5 million or 10 percent of all moneys collected by the corporation for fees, fines, and647 penalties imposed under this article in the most recent fiscal year.648 H. B. 686 (SUB) - 26 - 26 LC 56 0648S 50-27-152.649 ( a ) E a c h T y p e 1 l i c e n s e e o r i t s s p o r t s b e t t i n g s e r v i c e s p r o v i der shall report to the650 corporation, no later than January 15 of each year:651 (1) The total amount of wagers received from bettors for the i mmediately preceding652 calendar year;653 (2) The adjusted gross income of the licensee for the immediat ely preceding calendar654 year; and655 (3) Any additional information required by the rules and regulations of the corporation656 deemed in the public interest or necessary to maintain the inte grity of sports betting in657 this state.658 (b) A licensee shall promptly report to the corporation any information relating to:659 (1) The name of any newly elected officer or director of the board of the licensed entity;660 and661 (2) The acquisition by any person of 10 percent or more of any class of corporate stock.662 (c) With respect to information reported under subsection (b) of this Code section, a663 licensee shall include with such report a statement of any conflict of interest that may exist664 as a result of such election or acquisition.665 (d) Upon receiving a report under this Code section or subsect ion (b) of Code666 Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section667 50-27-193 to determine whether the licensee remains in compliance with this article.668 Part 4669 50-27-160.670 (a) No person shall knowingly:671 (1) Allow a minor to place a wager;672 H. B. 686 (SUB) - 27 - 26 LC 56 0648S (2) Offer, accept, or extend credit to a bettor in the form of a marker or promotional673 credit;674 (3) Target minors in advertising or promotions for sports betting;675 (4) Offer or accept a wager on any event, outcome, or occurrence other than a sporting676 event, including, without limitation, a high school sporting event offered, sponsored, or677 played in connection with a public or private institution that offers education at the678 secondary level; or679 (5) Accept a wager from an indivi dual who is prohibited from p lacing a wager or bet680 under Code Section 50-27-162, if such person has notice or actual knowledge that such681 individual is prohibited from placing such a wager or bet.682 (b) If the corporation determines that a person has violated a ny provision of this Code683 section, the corporation may impose an administrative fine not to exceed $25,000.00 per684 violation, or a total of $50,000.00 for violations arising out of the same transaction or685 occurrence.686 50-27-161.687 Except for those individuals ineligible to place bets under Cod e Section 50-27-162, an688 individual who is 21 years of age or older and who is physically located in this state may689 place a wager in the manner authorized under this article and the rules and regulations of690 the corporation.691 50-27-162.692 (a) The following individuals and categories of individuals shall not, directly or indirectly,693 place a wager on sporting events or online sports betting platforms in this state:694 (1) A member, officer, or employee of the corporation shall no t place a wager on any695 sporting event or platform;696 H. B. 686 (SUB) - 28 - 26 LC 56 0648S (2) A corporation vendor employee shall not place a wager on a sporting event using697 their employer's platform;698 (3) A licensee or principal owner, partner, member of the board of directors, officer, or699 supervisory employee of a licensee shall not place a wager on the licensee's platform;700 (4) A person that provides goods or services to a licensee or any principal owner, partner,701 member of the board of directors, officer, or supervisory emplo yee of a person that702 provides such goods or services shall not place a wager on the licensee's platform;703 (5) A contractor, subcontractor, or consultant or any officer or employee of a contractor,704 subcontractor, or consultant of a licensee shall not place a wa ger on the licensee's705 platform, if s uch individual i s directly involved in the licens ee's operation of sports706 betting or the processing of sports betting claims or payments through the licensee's707 platform;708 (6) An individual subject to a contract with the corporation s hall not place a wager on709 any platform, if the contract contains a pr ovision prohibiting the individual from710 participating in sports betting;711 (7) An individual with access to material nonpublic informatio n that is known712 exclusively by an individual who is prohibited from placing a wager in this state under713 this Code section shall not use any such information to place a wager on any sporting714 event or platform;715 (8) An amateur or Olympic athlete shall not place a wager on a ny sporting event in716 which the athlete participates;717 (9) A professional athlete shall not place a wager on any sporting event overseen by such718 athlete's professional sports governing body or sporting events operator;719 (10) A principal owner of a team, employee of a team, player, umpire, or sports union720 personnel, or employee, referee, coach, or official of a professional sports governing body721 or sporting events operator shall not place a wager on any sporting event, if the wager is722 H. B. 686 (SUB) - 29 - 26 LC 56 0648S based on a sporting event overseen by the individual's professional sports governing body723 or sporting events operator;724 (11) An individual having the ability to directly affect the outcome of a sporting event725 shall not place a wager on such sporting event;726 (12) A trustee or regent of a governing board of a public or private institution of higher727 education shall not place a wager on a collegiate sporting event;728 (13) An individual prohibited by the rules or regulations of a professional sports729 governing body or sporting events operator of a collegiate spor ts team, league, or730 association from participating in sports betting shall not plac e a wager on any sporting731 event to which such prohibition applies; and732 (14) A student or an employee of a public or private institution of higher education who733 has access to material nonpublic information concerning a student athlete or a sports team734 shall be prohibited from placing a wager on a collegiate sporti ng event if such735 information is relevant to the outcome of such event.736 (b) The corporation may prescribe by rules and regulations add itional individuals and737 categories of individuals who are prohibited from placing a wag er on specified sporting738 events or online sports betting platforms in this state.739 (c) The corporation shall prescribe by rules and regulations a ny measures necessary to740 ensure individuals who are prohibited from placing a wager on specified sporting events741 or online sports betting platforms in this state shall not be p ermitted to collude with742 individuals not specifically enumerated in subsection (a) of th is Code section to directly743 affect the outcome of a sporting event.744 (d) Any individual who places a wager in violation of this Code section:745 (1) For a first offense, shall be:746 (A) Indefinitely prohibited from placing a wager;747 (B) Required to forfeit the proceeds of any illegal wager;748 (C) Guilty of a misdemeanor; and749 H. B. 686 (SUB) - 30 - 26 LC 56 0648S (D) Fined not less than $500.00 nor more than $1,000.00;750 (2) For a second offense, shall be:751 (A) Required to forfeit the proceeds of any illegal wager;752 (B) Guilty of a misdemeanor; and753 (C) Fined not less than $5,000.00 or imprisoned for not less than one month nor more754 than five months, or both; and755 (3) For a third or subsequent offense, shall be:756 (A) Required to forfeit the proceeds of any illegal wager;757 (B) Guilty of a misdemeanor of a high and aggravated nature; and758 (C) Fined not less than $7,500.00 or imprisoned for not less than three months, or both.759 50-27-163.760 (a) The corporation shall by rules and regulations prohibit betting on injuries, penalties,761 the outcome of player discipline rulings or replay reviews, and any other type or form of762 betting under this article that is contrary to public policy or unfair to bettors.763 (b)(1) A professional sports governing body or sporting events operator may submit to764 the corporation in writing, by providing notice in such form an d manner as the765 corporation may require, a request to restrict, limit, or prohi bit a certain type, form, or766 category of sports betting with respect to its sporting events, if the professional sports767 governing body or sporting events operator believes that such type, form, or category of768 sports betting with respect to its sporting events may undermine the integrity or perceived769 integrity of such professional sports governing body or sportin g events operator or its770 sporting events. The corporation shall request comments from sports betting licensees771 and sports betting services provider licensees on all such requests it receives.772 (2) After giving due consideration to all comments received, the corporation shall, upon773 demonstration of good cause from the requestor that such type, form, or category of774 sports betting is likely to undermine the integrity or perceive d integrity of such775 H. B. 686 (SUB) - 31 - 26 LC 56 0648S professional sports governing body or sporting events operator or its sporting events,776 grant the request. The corporation shall respond to a request concerning a particular777 sporting event before the start of the event, or if it is not feasible to respond before such778 time, no later than seven days after the request is made. If the corporation determines that779 the requestor is more likely than not to prevail in successfully demonstrating good cause780 for its request, the corporation may provisionally grant the re quest of the professional781 sports governing body or sporting events operator until the cor poration makes a final782 determination as to whether the requestor has demonstrated good cause. Absent such a783 provisional grant by the corporation, sports betting licensees may continue to offer sports784 betting on sporting events that are the subject of such a request during the pendency of785 the corporation's consideration of the applicable request.786 Part 5787 50-27-170.788 (a) Prior to placing a wager with a licensee via online sports betting, a bettor shall register789 and establish a player account with the licensee remotely durin g which the bettor shall790 attest that the individual meets the requirements to place a wa ger with a licensee in this791 state. Prior to verification of a bettor's identity in accorda nce with this Code section, a792 licensee shall not allow the bettor to place a wager, make a deposit, or process a withdrawal793 via online sports betting. A licensee shall implement commerci ally and technologically794 reasonable procedures to prevent access to sports betting by mi nors on its online sports795 betting platforms. A licensee may use information obtained from third parties to verify that796 an individual is authorized to open an account, place wagers, a nd make deposits and797 withdrawals.798 H. B. 686 (SUB) - 32 - 26 LC 56 0648S (b) Each licensee shall adopt a registration policy to ensure that all bettors utilizing online799 sports betting are authorized to place a wager with a licensee within this state. Such policy800 shall include, without limitation, commercially reasonable mechanisms to:801 (1) Verify the identity and age of the registrant;802 (2) Verify that the registrant is not knowingly prohibited fro m placing a wager under803 Code Section 50-27-162; and804 (3) Obtain the following information from the registrant:805 (A) Legal name;806 (B) Date of birth;807 (C) Physical address other than a post office box;808 (D) Phone number;809 (E) A unique username; and810 (F) An active email account.811 (c) Each licensee may in its discretion require a bettor to provide the licensee with a signed812 and notarized document attesting that the bettor is qualified t o engage in sports betting813 under this article as part of the registration policy of the licensee.814 (d) A bettor shall not register more than one account with a l icensee, and each licensee815 shall use commercially and technologically reasonable means to ensure that each bettor is816 limited to one account.817 (e) Each licensee, in addition to complying with state and fed eral law pertaining to the818 protection of the private, personal information of registered b ettors, shall use all other819 commercially and technologically reasonable means to protect such information consistent820 with industry standards.821 (f) A bettor may fund an account through:822 (1) Electronic bank transfer of funds, including such transfers through third parties;823 (2) Debit cards;824 (3) Online and mobile payment systems that support online money transfers; and825 H. B. 686 (SUB) - 33 - 26 LC 56 0648S (4) Any other method approved by the rules and regulations of the corporation.826 (g)(1) Licensees shall not allow bets to be placed until first verifying the identity of the827 bettor pursuant to this Code section and by the rules promulgat ed by the corporation. 828 Further, and pursuant to the rules promulgated by the corporati on, licensees shall829 establish safeguards, including, but not limited to, access not ifications and similar830 security safeguards, to protect each bettor's account. Such sa feguards shall include,831 without limitation, the utilization of a two-factor authentication method each time a bettor832 accesses their account. As used in this paragraph, the term 't wo-factor authentication833 method' means an authentication method that requires entry of a username and password834 followed by entry of another method of identification.835 (2) If a licensee determines that the information provided by a bettor to make a deposit836 or process a withdrawal is inaccurate or incapable of verification or violates the policies837 and procedures of the licensee, the licensee shall, within ten days, require the submission838 of additional information that can be used to verify the identity of such bettor.839 (3) If such information is not provided or does not result in verification of the bettor's840 identity, the licensee shall:841 (A) Immediately suspend the bettor's account and shall not all ow the bettor to place842 wagers;843 (B) Retain any winnings attributable to the bettor; and844 (C) Refund the affected balance of deposits made to the account to the source of such845 deposit or by issuance of a check.846 (h) A licensee shall utilize geofencing technology to ensure t hat online sports betting is847 available only to bettors who are physically located in this state. Servers, including the use848 of backup servers, may be located outside of this state, consistent with federal law. To the849 extent required by federal law, a licensee shall maintain in this state the servers it uses to850 accept wagers on a sporting event placed by bettors located in this state.851 H. B. 686 (SUB) - 34 - 26 LC 56 0648S (i) Each licensee shall clearly and conspicuously display on its public website a statement852 indicating that it is illegal for a person under 21 years of age to engage in sports betting in853 this state.854 (j) The corporation shall promulgate rules and regulations for purposes of regulating sports855 betting via online sports betting.856 50-27-171.857 (a) Licensees shall allow bettors to limit their betting activ ity with the licensee by, at a858 minimum, giving bettors the opportunity to place limits on the amounts deposited, the859 amounts wagered, and the amount of time spent wagering. Licensees shall take reasonable860 steps to prevent bettors from overriding their self-imposed responsible gambling limits.861 (b) The corporation shall promulgate rules and regulations tha t require a licensee to862 implement responsible sports betting programs. Such rules and regulations shall require863 a licensee to develop a strategic implementation plan with details as to:864 (1) The use of player data and technology to aid in identifyin g potential problem865 gamblers;866 (2) The use of automated triggers to identify and manage accounts of potential problem867 gamblers; and868 (3) The levels of intervention and education provided to identified at-risk players, which869 shall include at a minimum:870 (A) A first phase involving communications with the individual in order to educate the871 individual on the availability of various responsible gaming fe atures and resources872 offered by the licensee;873 (B) A second phase that includes a video tutorial displayed to the individual either as874 one or multiple videos that provides education on the features and resources available;875 and876 H. B. 686 (SUB) - 35 - 26 LC 56 0648S (C) A third phase, when warranted, that includes access to a r esponsible gaming877 professional provided by the licensee to advise the individual on possible corrective878 actions to address at-risk behavior.879 (c) The corporation shall work with national and local organizations to provide services880 for individuals with problem gambling or a betting or gambling disorder and to establish881 prevention initiatives to reduce the number of individuals with problem gambling or a882 betting or gambling disorder, including, but not limited to, utilizing currently established883 programs for problem gambling or betting or gambling disorders.884 (d) All sports betting advertisements shall prominently displa y messaging designed to885 prevent problem gambling and provide information about how to access resources related886 to problem gambling, including the National Council on Problem Gambling's helpline or887 other similar toll-free helpline.888 (e) The corporation shall annually generate a report outlining activities with respect to889 problem gambling and betting or gambling disorders, including, but not limited to,890 descriptions of programs, grants, and other resources made avai lable; the number of891 individuals seeking assistance; the number of individuals who r eported completing892 programs and therapies; and the rate of recidivism, if known to the corporation. The893 corporation shall file the annual report with the Governor, President of the Senate, and the894 Speaker of the House of Representatives and shall publish such report on its public website895 no later than January 30 of each year.896 50-27-172.897 (a) Each licensee shall adopt and adhere to a written, comprehensive policy outlining its898 rules governing the acceptance of wagers and payouts. Such pol icy and rules must be899 approved by the corporation prior to the acceptance of a wager by a licensee. Such policy900 and rules shall be readily available to a bettor on the licensee's public website.901 (b) The corporation shall promulgate rules and regulations regarding:902 H. B. 686 (SUB) - 36 - 26 LC 56 0648S (1) The manner in which a licensee accepts wagers from and issues payouts to bettors,903 including payouts in excess of $10,000.00; and904 (2) Requirements for reporting suspicious wagers.905 Part 6906 50-27-180.907 (a) Licensees shall not be required to use official league dat a or official event data for908 determining the results of:909 (1) Tier 1 sports wagers on events of any organization, whethe r headquartered in the910 United States or elsewhere; or911 (2) Tier 2 sports wagers on events of organizations that are n ot headquartered in the912 United States.913 (b)(1) A professional sports governing body or sporting events operator headquartered914 in the United States may notify the corporation that it desires licensees to use official915 league data or official event data for determining the results of tier 2 sports wagers on its916 sporting events. A notification under this subsection shall be made in the form and917 manner as the corporation shall require. The corporation shall notify each licensee within918 five days after receipt of such notification from a professional sports governing body or919 sporting events operator. If a professional sports governing b ody or sporting events920 operator does not notify the corporation of its desire to suppl y official league data or921 official event data, licensees are not required to use official league data or official event922 data for determining the results of any tier 2 wagers on sporti ng events of that923 professional sports governing body or sporting events operator.924 (2) Within 60 days after the corporation notifies each license e as provided under925 paragraph (1) of this subsection, or within a longer period as may be agreed between such926 professional sports governing body or sporting events operator and the applicable927 H. B. 686 (SUB) - 37 - 26 LC 56 0648S licensee, each such licensee shall be required to use only official league data or official928 event data, as applicable, to determine the results of tier 2 s ports wagers on sporting929 events sanctioned by such professional sports governing body or sporting events operator,930 except when:931 (A) The professional sports governing body or sporting events operator, or a designee932 thereof, is unable to provide a feed of official league data or official event data to933 determine the results of a particular type of tier 2 sports wager, in which case licensees934 are not required to use official league data for determining the results of the applicable935 tier 2 sports wager until the data feed becomes available on commercially reasonable936 terms and conditions; or937 (B) A licensee is able to demonstrate to the corporation that the professional sports938 governing body or sporting events operator, or a designee there of, will not provide a939 feed of official league data or official event data to the lice nsee on commercially940 reasonable terms and conditions.941 (3) The following is a nonexclusive list of factors the corpor ation may consider in942 evaluating whether official league data or official event data is being offered on943 commercially reasonable terms and conditions for purposes of subparagraphs (A) and (B)944 of paragraph (2) of this subsection:945 (A) The extent to which licensees have purchased the same or similar official league946 data or official event data on the same or similar terms, parti cularly in jurisdictions947 where such purchase was not required by law or was required by law but only if offered948 on commercially reasonable terms;949 (B) The nature and quantity of the official league data or official event data, including,950 without limitation, its speed, accuracy, reliability, and overall quality as compared to951 comparable nonofficial data;952 (C) The quality and complexity of the process used to collect and distribute the official953 league data or official event data as compared to comparable nonofficial data;954 H. B. 686 (SUB) - 38 - 26 LC 56 0648S (D) The availability of tier 2 official league data of a profe ssional sports governing955 body or tier 2 official event data of a sporting events operator to a licensee from more956 than one authorized source;957 (E) Market information, including, without limitation, price a nd other terms and958 conditions, regarding the purchase of comparable data by licensees for the purpose of959 settling sports wagers, for use in this state or other jurisdictions; and960 (F) The extent to which professional sports governing bodies o r sporting events961 operators, or designees thereof, have made available to licensees the data used to settle962 the results of tier 2 sports wagers and any terms and condition s relating to the use of963 such data.964 (4) Notwithstanding any provision to the contrary in this Code section, including,965 without limitation, paragraph (2) of this subsection, while the corporation is evaluating966 whether a professional sports governing body or a sporting even ts operator, or the967 designee thereof, will provide a feed of official league data o r official event data on968 commercially reasonable terms and conditions pursuant to paragr aph (3) of this969 subsection, licensees are not required to use official league data or official event data for970 determining the results of tier 2 sports wagers.971 (5) The corporation shall make a determination under paragraph (3) of this subsection972 within 60 days after the licensee notifies the corporation that it desires to demonstrate that973 the professional sports governing body or sporting events operator, or a designee thereof,974 will not provide a feed of official league data or official eve nt data to such licensee on975 commercially reasonable terms and conditions.976 H. B. 686 (SUB) - 39 - 26 LC 56 0648S Part 7977 50-27-190.978 Members of the corporation or designated employees thereof may, during normal business979 hours, enter the premises of any facility of a licensee, or a t hird party utilized by the980 licensee to operate and conduct business in accordance with this article, for the purpose of981 inspecting books and records kept as required by this article to ensure that the licensee is982 in compliance with this article or to make any other inspection of the premises necessary983 to protect the public interests of this state and its consumers.984 50-27-191.985 (a) The corporation, licensees, corporation vendors, and vendors shall use commercially986 reasonable efforts to cooperate with investigations conducted b y any professional sports987 governing body, any sporting events operator, and law enforcement agencies, including,988 but not limited to, using commercially reasonable efforts to pr ovide or facilitate the989 provision of betting information.990 (b) Licensees shall promptly report to the corporation any information relating to:991 (1) Abnormal betting activity or patterns that may indicate a concern with the integrity992 of a sporting event; and993 (2) Conduct that corrupts the betting outcome of a sporting ev ent for purposes of994 financial gain, including match fixing.995 (c) Licensees shall, as soon as is practicable, report any inf ormation relating to conduct996 described in subsection (b) of this Code section to the professional sports governing body997 or sporting events operator.998 (d) Licensees shall use commercially reasonable efforts to maintain, in real time and at the999 account level, anonymized information regarding a bettor; the amount and type of bet; the1000 time the bet was placed; the location of the bet, including the internet protocol address if1001 H. B. 686 (SUB) - 40 - 26 LC 56 0648S applicable; the outcome of the bet; and records of abnormal betting activity for three years1002 after the sporting event occurs. The corporation may request such information in the form1003 and manner required by the rules and regulations of the corpora tion. As used in this1004 subsection, the term 'real time' means on a commercially reasonable periodic interval.1005 (e) All records, documents, and information received by the corporation pursuant to this1006 Code section shall be considered investigative records of a law enforcement agency, shall1007 not be subject to Article 4 of Chapter 18 of this title, and shall not be released under any1008 condition without th e permission of the person providing such r ecords, documents, or1009 information.1010 (f) Nothing in this Code section shall require a sports bettin g licensee to provide any1011 information that is prohibited by federal, state, or local laws or rules and regulations,1012 including, without limitation, laws and rules and regulations r elating to privacy and1013 personally identifiable information.1014 (g) If a professional sports governing body or sporting events operator has notified the1015 corporation that access to the information described in subsection (d) of this Code section1016 for wagers placed on its sporting events is necessary to monitor the integrity of its sporting1017 events and represents to the corporation that it specifically uses such data for the purpose1018 of monitoring the integrity of sporting events of such professional sports governing body1019 or sporting events operator, then licensees shall share, in a c ommercially reasonable1020 frequency, form, and manner, with the professional sports gover ning body or sporting1021 events operator, or a designee thereof, the same information th e licensee is required to1022 maintain under subsection (d) of this Code section with respect to sports wagers on such1023 a body's or operator's sporting events. A professional sports governing body or sporting1024 events operator, or a designee thereof, shall use information received under this subsection1025 for integrity-monitoring purposes only and shall not use such information for commercial1026 or any other purposes. Nothing in this subsection shall require a licensee to provide any1027 information that is prohibited by federal, state, or local laws , rules, or regulations,1028 H. B. 686 (SUB) - 41 - 26 LC 56 0648S including, but not limited to, laws, rules, or regulations relating to privacy and personally1029 identifiable information.1030 50-27-192.1031 The corporation shall assist in any investigations by law enforcement to determine whether:1032 (1) A licensee is accepting wagers from minors or other person s ineligible to place1033 wagers under Code Section 50-27-162; and1034 (2) An individual is unlawfully accepting wagers from another individual without a1035 license or at a location in violation of this article.1036 50-27-193.1037 (a) The corporation may investigate and conduct a hearing with respect to a licensee upon1038 information and belief that the licensee has violated the provisions of this article or upon1039 the receipt of a credible complaint from any person that a lice nsee has violated the1040 provisions of this article. The corporation shall conduct inve stigations and hearings in1041 accordance with rules and regulations adopted by the corporation.1042 (b) If the corporation determines that a licensee has violated any provision of this article1043 or any rules and regulations of the corporation, the corporation may:1044 (1) Suspend, revoke, or refuse to renew a license; or1045 (2) Impose an administrative fine not to exceed $25,000.00 per violation or a total of1046 $50,000.00 for violations arising out of the same transaction or occurrence, or both.1047 (c) The corporation shall promulgate rules and regulations est ablishing a schedule of1048 administrative fines that may be assessed in accordance with subsection (b) of this Code1049 section for each violation of this article; provided, however, that, if the corporation finds1050 that:1051 H. B. 686 (SUB) - 42 - 26 LC 56 0648S (1) A licensee is knowingly accepting wagers from minors or other persons ineligible to1052 place wagers in this state, the corporation shall impose a fine against the licensee as1053 follows:1054 (A) For a first offense, $1,000.00;1055 (B) For a second offense, $2,000.00; and1056 (C) For a third or subsequent offense, $5,000.00; or1057 (2) An individual is unlawfully accepting wagers from another individual without a1058 license, the corporation shall impose a fine against the individual as follows:1059 (A) For a first offense, $10,000.00;1060 (B) For a second offense, $15,000.00; and1061 (C) For a third or subsequent offense, $25,000.00.1062 (d) The corporation may refer conduct that it reasonably believes is a violation of Article 21063 of Chapter 12 of Title 16 to the appropriate law enforcement agency.1064 50-27-194.1065 (a) Any person that violates any provision of this article shall be liable for a civil penalty1066 of not more than $5,000.00 per violation, not to exceed $50,000.00 for violations arising1067 out of the same transaction or occurrence, which shall accrue to the corporation and may1068 be recovered in a civil action brought by or on behalf of the corporation.1069 (b) The corporation may seek and obtain an injunction in a court of competent jurisdiction1070 for purposes of enforcing this article.1071 (c) Costs shall not be taxed against the corporation or this state for actions brought under1072 this article.1073 H. B. 686 (SUB) - 43 - 26 LC 56 0648S 50-27-195.1074 The corporation may issue subpoenas to compel the attendance of witnesses and the1075 production of relevant books, accounts, records, and documents for purposes of carrying1076 out its duties under this article.1077 50-27-196.1078 (a) A licensee or other individual aggrieved by a final decision or action of the corporation1079 may appeal such decision or action to the Superior Court of Fulton County.1080 (b) The Superior Court of Fulton County shall hear appeals from decisions or actions of1081 the corporation and, based upon the record of the proceedings before the corporation, may1082 reverse the decision or action of the corporation only if the appellant proves the decision1083 or action to be:1084 (1) Clearly erroneous;1085 (2) Arbitrary and capricious;1086 (3) Procured by fraud;1087 (4) A result of substantial misconduct by the corporation; or1088 (5) Contrary to the United States Constitution, the Constitution of Georgia, or this article.1089 (c) The Superior Court of Fulton County may remand an appeal t o the corporation to1090 conduct further hearings.1091 50-27-197.1092 (a) It shall be unlawful for any person, directly or indirectly, to knowingly receive, supply,1093 broadcast, display, or otherwise transmit material nonpublic information for the purpose1094 of betting on a sporting event or influencing another individua l's or entity's wager on a1095 sporting event.1096 (b) This Code section shall not apply to the dissemination of public information as news,1097 entertainment, or advertising.1098 H. B. 686 (SUB) - 44 - 26 LC 56 0648S (c) Any person in violation of this Code section shall be inde finitely prohibited from1099 placing a wager, be required to forfeit the proceeds of any illegal wager, and be guilty of1100 a misdemeanor."1101 PART III1102 SECTION 3-1.1103 Part 1 of Article 2 of Chapter 12 of Title 16 of the Official C ode of Georgia Annotated,1104 relating to gambling, is amended by revising paragraph (1) of C ode Section 16-12-20,1105 relating to definitions, as follows:1106 "(1) 'Bet' means an agreement that, dependent upon chance even though accompanied1107 by some skill, one stands to win or lose something of value. A bet does not include:1108 (A) Contracts of indemnity or guaranty or life, health, property, or accident insurance;1109 or1110 (B) An offer of a prize, award, or compensation to the actual contestants in any bona1111 fide contest for the determination of skill, speed, strength, or endurance or to the owners1112 of animals, vehicles, watercraft, or aircraft entered in such contest; or1113 (C) Any consideration paid to participate in online sports betting offered pursuant to1114 Article 4 of Chapter 27 of Title 50."1115 SECTION 3-2.1116 Said part is further amended by revising Code Section 16-12-27, relating to advertisement1117 or solicitation for participation in lotteries, as follows:1118 "16-12-27.1119 (a) It shall be unlawful for any person, partnership, firm, co rporation, or other entity to1120 sell, distribute, televise, broadcast, or disseminate any advertisement, television or radio1121 commercial, or any book, magazine, periodical, newspaper, or ot her written or printed1122 H. B. 686 (SUB) - 45 - 26 LC 56 0648S matter containing an advertisement or solicitation for participation in any lottery declared1123 to be unlawful by the laws of this state unless such advertisem ent, commercial, or1124 solicitation contains or includes the words 'void in Georgia' printed or spoken so as to be1125 clearly legible or audible to persons viewing or hearing such advertisement, commercial,1126 or solicitation.1127 (b) Any person, partnership, firm, corporation, or other entity violating subsection (a) of1128 this Code section shall be guilty of a misdemeanor.1129 (c) This Code section shall not apply to any advertisement or solicitation for participation1130 in online sports betting by any person licensed under Article 4 of Chapter 27 of Title 501131 that is concerning such licensee's lawful activities."1132 SECTION 3-3.1133 Said part is further amended by revising Code Section 16-12-28, relating to communicating1134 gambling information, as follows:1135 "16-12-28.1136 (a) A person who knowingly communicates information as to bets , betting odds, or1137 changes in betting odds or who knowingly installs or maintains equipment for the1138 transmission or receipt of such information with the intent to further gambling commits the1139 offense of communicating gambling information.1140 (b) A person who commits the offense of communicating gambling information, upon1141 conviction thereof, shall be punished by imprisonment for not less than one nor more than1142 five years or by a fine not to exceed $5,000.00, or both.1143 (c) This Code section shall not apply to the activities author ized under Article 4 of1144 Chapter 27 of Title 50."1145 H. B. 686 (SUB) - 46 - 26 LC 56 0648S PART IV1146 SECTION 4-1.1147 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is1148 amended by revising paragraph (55) of Code Section 48-8-3, rela ting to exemptions from1149 state sales and use tax, as follows:1150 "(55) The sale of lottery tickets authorized by Chapter 27 of T itle 50 or wagers1151 authorized by Article 4 of Chapter 27 of Title 50;"1152 PART V1153 SECTION 5-1.1154 This Act shall become effective on January 1, 2027, following t he ratification of an1155 amendment to the Constitution of Georgia authorizing the General Assembly to provide by1156 law for the operation and regulation of sports betting activiti es; provided, however, to the1157 extent that this Act conflicts with law in effect at the time of ratification, this Act and such1158 amendment shall control, and to the extent such law is not in conflict, the law in effect at the1159 time of ratification shall control and shall remain in full force and effect. If such amendment1160 is not so ratified, then this Act shall stand automatically repealed.1161 SECTION 5-2.1162 All laws and parts of laws in conflict with this Act are repealed.1163 H. B. 686 (SUB) - 47 -