While the Georgia Senate is currently evaluating a new sports betting bill, the House of Representatives is now faced with another piece of gaming legislation.

A bill to legalize Georgia daily fantasy sports has been introduced in the House of Representatives. The bill, HB 1329, will legalize DFS in the state and tax the competitions at 20% of an operator’s adjusted gross fantasy contest receipts.

The bill was introduced by Rep. Ron Stephens (R-165), Rep. Trey Kelley (R-16), Rep. Yasmin Neal (D-79), and Rep. Al Williams (D-168).

DFS Defined as Game of Skill in Georgia

The DFS bill will define fantasy contests as “any online fantasy or simulated game or contest of skill with an entry fee.”

Participants will be able to assemble, own, or manage a fictional entry or roster of actual professional or amateur athletes who participate in real-world sporting events. Winning outcomes will be determined solely by clearly established scoring criteria based on one or more statistical results of the performance of individual athletes in a sporting events.

The Georgia Lottery will oversee and regulate DFS in the state.

Georgia legislators have set the state’s tax rate at 20% of an operator’s adjusted gross fantasy contest receipts. License holders will be split into “large operators” and all other organizations, which will determine what they pay for a DFS license.

Large operators are defined as those, at the time of receiving its initial or renewed fantasy contest operator license, who have adjusted gross fantasy contests receipts greater than or equal to $5 million within the last 12 months.

Large DFS operators will be required to pay a nonrefundable application fee of $100,000 and an annual licensing fee of $1 million. All other operators will not be charged an application fee and will pay an annual licensing fee of just $5,000.

Georgia is Home to PrizePicks

A passage of the DFS bill would a welcome sight for operator PrizePicks, which was founded in Georgia. The DFS operator could use some good news, as it has ceased operations in several states this last month.

Last week, the Arkansas Department of Finance and Administration sent cease-and-desist letters to both PrizePicks and Underdog Fantasy for what it believes amounts to unlicensed sports betting in violation of Amendment 100 to the Arkansas Constitution.

Under Arkansas law, traditional daily fantasy sports operate under the protection of Act 1075 of the 2017 regular session, the department noted. The law does not allow these operators to offer what it believes to be unlicensed sports betting.

The Arkansas cease-and-desist letters came on the same day the Florida Gaming Control Commission revealed it had sent a second round of cease-and-desist letters to Underdog, PrizePicks, and Betr.

The letters asked each of the daily fantasy sports operators to cease and desist “offering or accepting illegal bets or wagers from [Florida] residents” and “conducting any illegal lotteries” within 30 days of Jan. 31. If the operators decided to not comply, the matter would be sent to the Attorney General’s Office of Statewide Prosecution.

An Underdog Fantasy spokesperson confirmed the company received the letter and would be end Florida operations on Friday, March 1. A PrizePicks representative also confirmed it would cease its current games on that date.

PrizePicks also ceased its paid DFS contests in New York on Wednesday, Feb. 14. The operator now only offers its free-to-play contests in the Empire State.

PrizePicks did not have a license to operate in New York, but has reported that it will go through the licensing process in the state.