Sports betting industry backs Georgia legislators as it seeks legal gambling

Sports betting firms have had a tough time trying to legalize their product in Georgia, but a recent blitz of campaign spending suggests the industry believes its fortunes could change.

Political committees largely funded by sports betting companies spent nearly $10 million on 34 legislative races ahead of last week’s primary and recent special elections. An Atlanta Journal-Constitution review found the industry’s favored candidates won or advanced to a runoff in all but two of those races.

Sports betting money likely wasn’t the decisive factor in most of those races, and support from the industry is no guarantee that legislators will back sports gambling legislation in the future. But the industry clearly believes that supporting current and future lawmakers is a good investment. And it’s also sending a message to lawmakers who don’t support its priorities.

One of them is Rep. Mary Ann Santos, D-McDonough. The industry spent $311,000 to oppose Santos and to support one of her Democratic rivals, Kim Thomas Smith, in last week’s primary. Santos is now the only incumbent state legislator forced into next month’s runoff, where she’ll face Smith.

In March, Santos voted against House Resolution 450, which would have allowed Georgia residents to decide by referendum whether to allow online sports betting. She said she’s not necessarily opposed to sports betting, but she said the proposal didn’t have proper safeguards to protect the public.

Asked why she thought the industry targeted her, Santos responded, “I couldn’t be bought.”

Georgia is one of largest states not to have legalized sports betting. The industry has been trying for years to change that. But it’s faced bipartisan opposition from lawmakers concerned about the social costs of gambling and questions about how the industry would be regulated and how the state should spend revenue generated from gambling. HR 450 failed by a wide margin.

The industry is seeking to change its luck by supporting candidates with independent spending through two political committees. American Conservative Fund Action Georgia has spent nearly $7 million on GOP legislative races this year, according to recent campaign reports. American Future has spent about $2.5 million on Democratic races.

Both groups get much of their funding through a third political committee, Win for America, which is funded by DraftKings, FanDuel and other sports betting platforms.

“Legal online sports wagering generates billions in tax revenue across 31 states — in addition to contributing to job growth and other community investment,” a spokesman for Win for America said. “These groups seek candidates who will thoughtfully approach the tax revenue and job opportunities our industry provides.”

Under Georgia law, the groups’ spending is independent of the candidates’ campaigns. They seek to persuade voters without coordinating with the candidates themselves.

American Conservative Fund spent $583,000 to support Lanny Thomas over two other Republicans in a March special election to replace Sen. Colton Moore in northwest Georgia District 53. Thomas eventually defeated a Democratic candidate in a runoff election. The group also supported Thomas in last week’s primary.

The industry’s support doesn’t necessarily mean candidates support sports betting. Thomas told the AJC he’s a new senator and hasn’t studied the issue.

“I really don’t know why they picked me out,” Thomas said.

Smith, the Democrat who won the industry’s support over incumbent Santos, said Georgia needs an “honest conversation” about sports betting. She said it could generate revenue to support education, workforce development and other priorities.

“If sports betting is ever legalized in Georgia, the revenue generated should be used responsibly and transparently,” Smith said.

The industry’s efforts aren’t always successful. American Conservative Fund spent tens of thousands of dollars opposing Rep. Charlice Byrd, R-Woodstock, and supporting her opponent in last week’s Republican primary.

Byrd also voted against HR 450. But she thinks some of her Republican colleagues asked the political committee to target her because they find her difficult to deal with. Byrd said she votes against legislation 60% of the time.

Byrd defeated her opponent despite the efforts to unseat her.

“There are so many people across this state that believe in what I’m doing,” she said.

It’s difficult to say how much American Conservative Fund spent on individual races because its reports aggregate spending for numerous candidates. But the reports show it made a greater effort on behalf of some candidates.

Sen. Frank Ginn, R-Danielsville, appears to be a top recipient of the group’s support. Ginn has opposed expanding gambling in Georgia in the past. But last fall he served on a committee that studied ways to expand Georgia’s tourism industry. One of its recommendations: legalize mobile sports betting.