The expansion of a fantasy sports headquarters in midtown Atlanta was hailed this month by Gov. Brian Kemp as evidence of the industry's role in the state's booming technology innovation.
A ribbon cutting ceremony was held Dec. 12 in the unfinished office space where the Republican governor, local and state officials, and PrizePicks executives met inside the future headquarters of a growing brand that expects to hire 1,000 new employees within the next seven years.
Sports gambling supporters have been trying to persuade lawmakers to legalize sports gambling in Georgia by arguing the revenue could be used to fund college scholarships and other programs.
In 2018, the U.S. Supreme Court struck down a federal law that prohibited sports betting in most of the country, allowing states to regulate mobile sportsbooks. Despite legal uncertainty, the mobile sports industry has exploded across the country, with PrizePicks offering users more than 30 fantasy sports categories to wager on.
A bill sponsored by Athens Republican Sen. Bill Cowsert would have put sports betting on the ballot this fall. Cowsert's measure cleared the Senate but failed to pass in the House, marking yet another setback after numerous versions of sports betting legislation have failed to pass both chambers in recent years.
The debates have largely centered on how to divide revenue among causes like rural health care and needs-based college scholarships, as well as pre-K, which has been a preference of both political parties' caucuses.
Kemp said he has maintained a neutral stance regarding legalized sports betting, emphasizing his push for job growth to boost the economy while staying protective of Georgia's lottery-funded HOPE scholarship program.
"My position has been very clear on gaming. That being said, the legislature, especially, if they're trying to do a constitutional amendment, it doesn't really matter what I think," Kemp said. "My whole thing is if they're going to do something like that, we need to make sure it does not cannibalize the lottery and HOPE scholarship."
Mike Ybarra, CEO of PrizePicks, stressed the importance of maintaining a positive working relationship with the governor's staff and keeping its focus on the daily fantasy sports space.
"It's where we come from, it's where our business is," Ybarra told reporters. "You asked the governor a question about (online sports betting). We're not pushing online sports. We love our relationship with the governor and his team and the growth of our business."
Ybarra said there is a difference between more "skill based" fantasy sports and the standard sports betting, which is based on certain factors such as how many points a team will outscore their opponent.
"Fantasy sports is a very different profile of entertainment for us," he said.
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Sen. Clint Dixon, sponsor of a sports betting regulation measure in 2024, describes the chances that sports betting passes in 2025 as low.
The Buford Republican's bill in 2024 proposed that the Georgia Lottery oversee the bidding process to award seven licenses to sports gambling companies. The other licenses would be distributed among Atlanta's five major professional sports franchises, NASCAR, Georgia Lottery, PGA and Augusta National.
He also said he would be glad to carry any sports betting bill that passes through the House next year. He said he believes legalizing online sports betting as well as a broader array of fantasy sports could bring an additional $40 million in revenue annually. The new legislative session begins Jan. 13.
During the past few years, the movement to legalize horse racing and casinos has faced stronger opposition. Powerful conservative religious organizations, including the Georgia Baptist Mission Board, oppose the sports betting industry that is supported by the Georgia Chamber of Commerce and an alliance of Atlanta-based professional sports franchises.
"We passed it through the Senate with a constitutional amendment fairly quickly, but it got bogged down in the House," Dixon said. "From what I understand, the House will take it up this year, it won't be starting in the Senate, and we'll see if they can get it across to us."
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Earlier this year, Cowsert said he would defer action on sports betting legislation to the House next session and see if they show interest. He expressed his frustration with the House putting a halt to a sports betting plan this year that incorporated input from various parties.
"From the Senate standpoint, we think this year's version, in particular, was very well crafted," Cowsert told the Recorder earlier this year. "All the different players in the industry were in agreement and we had fantastic provisions to prevent problem gaming that I think addressed a lot of people's concerns. Yet the House still didn't act on it so perhaps there's not the political will in the state of Georgia to pass it.
"My recommendation is that the Senate refer to the House next go round and let's see if they have any appetite or interest in passing sports betting," Cowsert said.
Georgia Recorder reporter Ross Williams contributed to this report.
Read more at GeorgiaRecorder.com.