Georgia (U.S. state) iGaming Market Research Report

Georgia (the state of Georgia) has a population of approximately 11 million people and continues to present a limited yet changing environment for iGaming due to its being primarily run through the state lottery, with no legal sports betting or casinos. The multiple recent legislative efforts regarding sports book legislation and possible referendums indicate that momentum is increasing in Georgia as those surrounding jurisdictions expand their gaming opportunities. This report will outline the trends and laws that are occurring, the competition with other similar wagering jurisdictions, and identify possible opportunities that exist for operators and investors in Georgia as of the beginning of 2026.

Market Overview

Georgia’s gaming industry remains highly restricted, with the state’s only legal operator, the Georgia Lottery Corporation (GLC), generating extremely large amounts of revenue, although illegal offshore gaming sites also capture a significant share of informal gaming. For the 2024 Fiscal Year (July 2023 through June 2024), GLC reported around $5.5-6 billion in total ticket sales and net proceeds of $1.3-1.5 billion for educational programs such as HOPE scholarships and Pre-K funding. Compared to previous years, this is down – e.g., sales for $30 categories were down 30.9% to $504.5 million, and sales for $25 categories were down 39.6%, likely due to most people returning to a “normal life” after the COVID pandemic, as well as to competition from surrounding states. As of late 2025, cumulative contributions to the lottery program have reached $30 billion.

Table 1: Georgia Lottery FY2024 Financial Snapshot

Market Size & Growth

• Revenue Breakdown (FY2024): Scratch-offs dominated at ~70–80% of sales; $50 tickets rose 66% to $407.4 million, led by high-stakes games.​
• Growth Rate: Overall sales dipped 2–5% YoY in FY2024–2025, contrasting national US lottery growth of 5–10%; illegal iGaming is estimated at $1–2 billion annually in lost revenue.
• Number of Players: Over 7 million unique lottery players annually (60%+ of adults); offshore estimates reach 1–2 million active users, driven by sports enthusiasm.

No legal casinos or sportsbooks exist, limiting the market to ~$6 billion total vs. a potential $10B+ post-legalization.​

Popular Game Types

Legal options focus on the lottery; illicit channels fill casino/sports voids.

Table 2: Popular Game Types Distribution

Scratch-offs account for 75%+ sales; draw games offer better odds, appealing to regulars.​

Player Demographics

• Age: Primarily 25–55 (core lottery base); younger 18–34 cohort (40%+) favors offshore sports betting.
• Gender: Males 55–60% (sports/ high-stakes), females prefer scratch-offs.​
• Preferences: Urban Atlanta residents lead (50%+ spend); low-income/middle-class for lottery, affluent for illicit poker. Mobile access rising; responsible gaming lists show 1.5M+ self-excluded nationally (contextual note).​

Regional trends show sports fandom (UGA Bulldogs) boosting betting proxies; women dominate instant-win games. This structure positions Georgia for explosive growth if legalized, targeting youth via tech innovations.

Table 3: Player Demographics Breakdown

Regulatory Landscape

In the United States, Georgia has one of the strictest gambling laws in place, allowing only for legal gambling to occur where there is a state lottery. All other forms of legal gambling are prohibited, including casinos, sports betting, poker, and commercial operations. This restriction was placed into the 1992 Constitution of Georgia (Article 3, Section 6, Paragraph 6) to outlaw all forms of wagering and impose felony penalties for violations (O.C.G.A. § 16-12-21 et seq.). No federally recognized tribes are permitted to operate gaming facilities because no recognized tribes reside in Georgia. Illegal bookies and offshore gambling facilities are primarily targeted for enforcement of the law through the seizure of assets or the blocking of websites.

Table 4: Current Gambling Regulations Summary

Overview of Existing Gambling Regulations

• Allowed: Only GLC-run lottery (draw games, scratch-offs).
• Prohibited: Sportsbooks, slot machines, table games, online casino/poker, horse racing (except historical charity events).
• Key Laws: Georgia Lottery Act (O.C.G.A. Title 50, Ch. 27); Criminal Code bans lotteries/promotions except state-approved.​

This setup funnels demand to neighbors (e.g., Florida Seminole casinos) or illicit platforms.​

Licensing Requirements and Regulatory Authorities

There are no currently offering an iGaming license. The GLC is authorized through a Governor-appointed Board (9 members), who are confirmed by the State Senate. Retailers apply for a terminal through the Georgia Lottery (10,000+) and go through a background check, bonding, and a compliance training program—all at no public cost.

• The Georgia Lottery (CEO) is responsible for oversight of the entire program and will be audited by the State Auditor.
• ​The Federal UIGEA / Wire Act restricts out-of-state internet wagering, with the IRS taxing all winners.​

Taxation and Compliance Details

• Lottery Taxation: no sales tax; state income tax – 5.49% – 5.75%; federal tax – 24% withholding (lottery winnings over $5,000); net proceeds (approximately 35% – 40% from ticket sales) for education (100% transferred by law).
• Compliance: must be 18 years with identification; must demonstrate anti-money laundering compliance through retailer monitoring; and must undergo annual audits of retailers. The game lottery problem gambling hotline is funded by GLC.
• Penalties: illegal lottery operators are subject to imprisonment for 1 – 5 years and fines of $20,000.

Upcoming Legislative Changes

The 2026 session (January to April 2026) will include HB 910 (Rep. Marcus Evans Jr.), allowing the creation of regulated online sports betting platforms (16 with $1M licenses, no need for in-person registration). The proposed tax rate is 20-25% of the handle, and there will be integrity fees. Other Senate proposals, including SR 131, would amend the Constitution, allowing for a voter referendum on sports betting and 5 destination casinos in the Atlanta area. As of Feb 6, no bills have made significant advancement, while bills from the prior year remain in committee because of a dispute over revenue estimates ($300-700 million). The GOP has actively opposed this legislation by citing the risk of addiction. Passage was estimated by analysts at 40-50%. If legal, sports betting will likely resemble what exists today in Louisiana with certain protections. During the current budget crisis ($3B in state budget), all stakeholders will be closely watching for additional fiscal reports.

Table 5: Upcoming 2026 Legislation Tracker

Competitive Landscape

Legally, the market in Georgia is a monopoly as the GLC has most of the market share, and there are no iGaming operators. Illegal offshore operators are doing well in the underground market, while potential legalisation has brought in big companies from other parts of the U.S. There are not currently any casinos located in Georgia, though the nearest casinos are located on tribal land in Alabama and Florida.

Key Market Players

Legal (Lottery-Only):

• Georgia Lottery Corporation (GLC): State entity; sole operator since 1993, managing 10,000+ retailers.​

Illegal/Offshore (Dominant in Shadow Market):

• Bovada, BetOnline, MyBookie: Lead sports betting/slots; crypto-friendly, targeting Georgians.

Table 6: Potential Entrants (Lobbying for Legalization):

International firms like Evolution Gaming eye live dealer if casinos greenlit.​

Market Share Distribution

• Legal: GLC 100% (~$6B FY2024 sales); scratch-offs 75–80%, draw games 20–25%.​
• Illegal Estimates: Offshore captures 70–90% of potential iGaming spend ($1–3B/year), per regional audits—sports 50%, casino 40%, poker 10%.
• Geographic: Atlanta metro 50%+ share; rural areas are lottery-reliant.​

GLC’s stability contrasts with offshore volatility from enforcement risks.​

Table 7: Market Share Estimates

Partnerships and Strategic Alliances

Legal partnerships limited: GLC-Scientific Games (instant tickets/tech supplier); IGT (draw systems). Retailer networks (e.g., convenience chains) via commissions (6–7%).

Strategic moves center on legalization lobbying:

• Coalitions: Georgia Sports Betting Alliance (operators + stadiums like Mercedes-Benz).
• Bipartisan PACs: Funding HB910/SR131; DraftKings/FanDuel donated $500K+ to legislators.
• Hypothetical: Post-legal, Lottery consortia with 8–16 operators; tribal talks nil.​

Alliances emphasize integrity (e.g., GeoComply for geofencing). Competition intensifies pre-legalization via ad wars; winners will hold 10–20% shares initially.​

Consumer Trends

Players in Georgia have two distinct gambling markets—official state-run and illegal offshore—and their choices are dictated by different factors, with a strong focus on convenience and desire. In Georgia, habitual lottery play is common, with more than 70% of adults playing the lottery each year, especially during major jackpot events.

Player Behavior and Preferences

• Weekly scratch-offs offer immediate results (F:55% women) while the infrequent larger pay-outs appeal to men.
• Top choices will be high RTP slot games/sports props offshore, while lottery will focus on $20-$50 scratch-offs, e.g., 200X The Money.
• 40% of daily mobile users illegally engage in online wagering; loyalty programs encourage repeat players.
• Live wagering on college teams, e.g, UGA vs. UGA appeal to younger groups.

Payment Methods and Technological Trends

• Legal Lottery: Cash/debit at retailers; prizes via check/ACH >$600.​
• Offshore: Crypto (BTC 40%), Visa/Mastercard (despite blocks), e-wallets (Skrill).​
• Tech Shifts: App dominance (85% smartphone penetration); AI personalization rising; VR slots emerging illicitly.

Mobile optimization key—60% play via phones.​

Player 8: Payment and Tech Trends

Social and Cultural Influences on iGaming

Stigmatization of gambling in Conservative Bible Belt communities (40% against gambling’s expansion), but increasing acceptance of gambling in neighboring states (Tennessee sports betting)is eroding stigma. As the sports culture continues to grow (NFL/college football), there is now more than 50% of those reporting interest in betting on sports. Then there are also state-run lotteries that would be viewed as “playful fun” in many cases.

• Demographic differences: Higher levels of lottery players among African Americans; younger millennial players use social media for hype.
• Concerns about gambling include the increase in self-exclusions as evidence of growing public awareness and use of responsible gambling messaging from GLC efforts.

There are trends toward utilizing regulated mobile iGaming as a growing market for younger, tech-savvy consumers who demand ethical and innovative ways to play.

Opportunities & Challenges

The massive potential for growth that would accompany legalization: If H.B. 910 were to pass, there is a potential for over 500 million dollars to be generated by taxes on 18 different sports betting licenses in GA. New Market entrants are looking to partner with the A Lottery for a quick entry into the Atlanta market, with approximately 5 million in metro population. Innovations such as integrated apps (lottery & sports betting) and esports have the possibility of attracting a young, tech-savvy audience.

Challenges include a lack of voters supporting sports betting; H.B. 910 must pass in the House before the end of the spring 2026 legislative session; and operational issues include geofencing and addiction prevention measures. Georgia would be competing against Florida and Alabama, whichrespectively spend over $1 billion per yearinf Georgia.

Investment opportunities include: Lobbying, Compliance software/technology, and Responsible Gaming Tools after Legalization has occurred.

Conclusion & Recommendations

The Georgia iGaming market currently revolves around its lottery, having had limited expansions over the past few years. However, pending legislation for 2026 has the potential to positively shift this direction. The basis for optimism rests primarily in 3 key areas: a $6 billion dollar foundation made up of lottery revenues, an acceptable demographic profile age-wise (young), and a demonstrated momentum of legislative efforts.

• Operators (among others) can focus on supporting HB910 and preparing for partnerships with Georgia’s Lottery, as well as creating pilots for responsible gaming measures for GA’s regulators.
• Investors (and others) can work with Georgia-based operations before their legality through M&A transactions.

If the legislation moves forward and iGaming becomes legal by 2027, Georgia would likely see annualized growth rates of over 10%.

Data and Sources:​

• Georgia Lottery Corporation Financial Reports: FY2024 sales/revenue/proceeds/game data, 
• GALottery.com Reports Page: Licensing, compliance, annual audits, 
• Covers.com Georgia Betting: Legal status, bills HB910/SR131, offshore trends, 
• 500Nations Georgia Casinos: No casinos/tribal info, prohibitions, 
• Gov.Kemp Press Release: Cumulative $30B proceeds, 
• NASPL Insights: FY2025 $1B+ proceeds, 
• AffPapa: HB910 details 2026, 
• Covers Industry News: Legislator bills Jan 2026, 
• GA State Auditor Reports: Tax incentives/market audits, 

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