A shift in the world of online gaming is affecting the debate around expanding legalized gambling in Georgia.

This year, Kalshi, a prediction market, enabled Georgians to wager on the outcome of sports events across the country. Georgia is one of about a dozen states that has not legalized sports betting in the years since the U.S. Supreme Court ruled in 2018 that states — other than Delaware, Montana, Nevada and Oregon, where gambling was already legal — could allow it.

Under federal rules, companies like Kalshi are considered exchanges that allow trading in recognized financial products, comparable to the stock market. In the past year, the company added sports to the types of events that can be wagered on. Kalshi successfully argued in court last year that only the federal Commodity Futures Trading Commission can regulate the company.

The Biden administration appealed the ruling, but the challenge was dropped earlier this year once President Donald Trump returned to the White House.

Even before the new development, traditional sports betting was already happening in Georgia.

For years, Georgians have been able to pull up a sports betting website or app on their cellphone and place bets on games — most likely using overseas servers and skirting Georgia’s laws that make the practice illegal.

For a few years, the state Senate took the lead on crafting gambling legislation, sending several versions to the House for consideration. But the bills never made it to a floor vote.

One lawmaker whose bill suffered that fate — Republican state Sen. Clint Dixon of Buford — said he doesn’t envision gambling efforts getting much play next year when Georgians will vote on every seat in the General Assembly.

Plus, as of mid-December, nine senators had declared they plan to seek higher office in 2026, which typically makes it difficult to pass hot-button legislation.

“Unless one of the statewide folks thinks that’s a good issue to run on, I don’t know if we’ll gather much ground with it,” Dixon said. “Maybe in (2027). But who knows what will happen?”

The emergence of companies similar to Kalshi is evidence that Georgia needs to take legislative action soon, said Jeremy Kudon, president of national lobbying consortium Sports Betting Alliance.

“The landscape is changing quickly, and the window to regulate and tax sports betting activity is closing,” Kudon said. “By acting now, the state can provide millions in new taxes, while also ensuring that Georgians enjoy a safe and secure state regulated framework that consumers will prioritize.”

Supporters of legalizing online gambling say Georgians already illegally bet nearly $5 billion a year on sports. They claim sports betting could bring anywhere from $30 million to $100 million in revenue to the state each year.

Critics — most of whom say they oppose all forms of gambling because they believe it to be addictive and immoral — have said such numbers are exaggerated.

“This narrative that ‘we’re going to legalize it so we can regulate it’ tends to be a placebo,” said Mike Griffin, a lobbyist with the Georgia Baptist Mission Board. “They don’t make the majority of their money … from responsible gamblers. They make the most money from addicted or problem gamblers. And when you legalize something that’s already causing a problem, it’s going to be like pouring gasoline on the dumpster fire.”

If legislation is pushed in 2026, it will be the eighth session lawmakers have attempted to expand gambling in Georgia to include sports betting. Since the 2018 Supreme Court ruling, legalized sports betting has expanded to 38 states.

But each year the bills have struggled to cross the finish line in Georgia.

Analysts at the Capitol have been inconsistent on whether the state constitution allows sports betting. In 2019, Legislative Counsel Director Rick Ruskell recommended passing a constitutional amendment to legalize sports betting, citing ambiguity in the state constitution’s definitions. Ruskell has declined to comment publicly since then.

State Sen. Frank Ginn, R-Danielsville, has consistently voted against any expansion of gambling. He said recent scandals in professional baseball and basketball involving players gives him pause.

“You’d like to think that it’s fair and honest,” he said. “But the more gambling that takes place, more opportunity there is for people to be dishonest and take advantage of the public.”

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