Is Gambling Illegal in Georgia? Exceptions, Penalties, and Taxes

Yes, gambling is illegal in Georgia in almost every form. State law treats betting on games of chance as a crime, and only five activities sit outside that ban: the Georgia Lottery, licensed charitable bingo, licensed nonprofit raffles, skill-based coin-operated amusement machines, and daily fantasy sports contests. Casinos, sports betting, and online wagering through offshore sites all remain against the law.

What Counts as Gambling Under Georgia Law

Georgia’s criminal code defines the offense broadly. A person commits gambling by placing a bet on any game of chance, participating in an unlicensed lottery, or playing any other game for money or property when the outcome depends on luck rather than skill.1Justia Law. Georgia Code 16-12-21 – Gambling Card games for cash, dice, roulette, unauthorized slot machines, and informal wagers among friends all fit.

Georgia has no separate internet gambling statute, but it does not need one. The general prohibition covers online wagering the same way it covers in-person betting, so placing bets through an offshore website or unlicensed app is illegal under Georgia law. Promotional giveaways and contests that require no purchase to enter fall outside the definition, and so do certain good-faith business promotions run purely for advertising.

Penalties for Gambling in Georgia

The penalty depends on your role. A player and a bookmaker face very different consequences, and property owners have their own exposure.

Simple Gambling

Participating as a player is a misdemeanor. In Georgia that means up to 12 months in jail and a fine of up to $1,000.1Justia Law. Georgia Code 16-12-21 – Gambling Everything from a home poker game to a bet placed through an unauthorized platform can fall under this level of the statute.

Commercial Gambling

Running a gambling operation is a felony. A person commits commercial gambling by operating a gambling business, profiting from someone else’s gambling activity, or financing an illegal gambling enterprise. The penalty is one to five years in prison, a fine of up to $20,000, or both.2Justia Law. Georgia Code 16-12-22 – Commercial Gambling This is the charge used against bookmakers, unlicensed machine operators, and anyone taking a cut from illegal action.

Keeping a Gambling Place

Knowingly allowing your property to be used for gambling is a misdemeanor of a high and aggravated nature, which carries stiffer penalties than a standard misdemeanor.3Justia Law. Georgia Code 16-12-23 – Keeping a Gambling Place You do not have to gamble yourself. Renting a room or building while expecting gambling to occur there is enough.

What Gambling Is Legal in Georgia

Five activities sit outside the ban. Each comes with conditions, and stepping past those conditions puts you back inside the criminal statute.

The Georgia Lottery

Voters approved a constitutional amendment in November 1992 creating the state lottery. The Georgia Lottery Corporation runs the games, and proceeds fund HOPE Scholarships, Pre-K programs, and educational technology.4Georgia Lottery. History Any lottery not authorized by the state remains illegal.

Charitable Bingo

Bingo is one of only three legal forms of gambling in Georgia, alongside the lottery and raffles.5Georgia Bureau of Investigation. BINGO Eligible nonprofits can apply for an annual bingo license through the Georgia Secretary of State’s office, and schools, religious organizations, and other nonprofits can get one-time permits for individual events.6Georgia Secretary of State. How-To Guide – Charity Bingo

Compliance is real. Every licensed bingo operator must submit annual financial statements prepared by a certified public accountant by May 1 of each year, along with a compliance form after electing new officers.6Georgia Secretary of State. How-To Guide – Charity Bingo Everyone working an event must complete a background check and fingerprinting. Operating without a license, or slipping on these requirements, strips the legal protection that makes bingo lawful in the first place.

Nonprofit Raffles

Tax-exempt nonprofits can hold raffles, but only after obtaining a license. The application requires the names and addresses of everyone operating or promoting the raffle, an IRS determination letter confirming tax-exempt status, and proof of Georgia income tax exemption.7Justia Law. Georgia Code 16-12-22.1 – Raffles Operated by Nonprofit Organizations An unlicensed raffle is treated as any other illegal lottery.

A tax note worth remembering: the cost of a raffle ticket is not deductible as a charitable contribution, even when the raffle benefits a registered charity. The IRS treats raffle purchases as gambling expenses.8Internal Revenue Service. Publication 526 – Charitable Contributions

Coin-Operated Amusement Machines

Georgia permits coin-operated amusement machines, often called COAMs, but the line between amusement and gambling is sharp. A machine qualifies as a “bona fide coin operated amusement machine” only if its outcome depends at least partly on the player’s skill. Pinball, crane games, video games, skeeball, and trivia machines fit.9Justia Law. Georgia Code 50-27-70 – Legislative Findings

The law splits the machines into two classes. Class A machines can award noncash prizes with a wholesale value of no more than $50 per play.9Justia Law. Georgia Code 50-27-70 – Legislative Findings Class B machines let players accumulate points across plays and redeem them for limited rewards. Neither class can operate like a slot machine, and a machine driven purely by chance does not qualify.

Daily Fantasy Sports

Daily fantasy sports contests run by companies such as DraftKings and FanDuel are legal under the Georgia Fantasy Contest Act of 2018. The law treats these contests as skill-based competitions built around selecting rosters and tracking player statistics, not wagers on game outcomes. That distinction is what keeps fantasy contests out of the gambling ban. Traditional sports betting is a separate question, and it is still illegal.

Taxes on Winnings from Legal Gambling

Winning through a legal activity in Georgia creates tax obligations. Lottery prizes, bingo winnings, and daily fantasy payouts are all taxable income.

For 2026, gambling operators must report winnings on IRS Form W-2G when payouts from bingo or slot machines reach $2,000, or when winnings from lotteries, sweepstakes, and sports wagering reach $2,000 and are at least 300 times the amount wagered. When lottery or sweepstakes winnings minus the wager exceed $5,000, the operator must withhold 24% for federal income tax before paying you.10Internal Revenue Service. Instructions for Forms W-2G and 5754

Gambling losses can offset winnings, but only if you itemize deductions on your federal return and only up to the amount of winnings you reported. Losses cannot create a net deduction, and you need records of both wins and losses to claim them.11Internal Revenue Service. Topic No. 419 Gambling Income and Losses Winnings are subject to Georgia state income tax as well. Whether or not a W-2G is issued, all gambling income belongs on both your federal and state returns.

Sports Betting and Pending Legislation

Sports betting remains illegal in Georgia. The 2018 U.S. Supreme Court decision striking down the Professional and Amateur Sports Protection Act cleared the federal barrier and let each state decide.12Supreme Court of the United States. Murphy v National Collegiate Athletic Assn Georgia has not acted.

Bills keep stalling. House Bill 570, introduced during the 2019–2020 session, proposed a sports betting framework under the Georgia Lottery Corporation and would have required a constitutional amendment approved by voters.13Georgia General Assembly. HB 570 – Georgia Sports Betting Act It died in committee. A 2025 proposal met the same end. In 2026, House Bill 910 reintroduced the effort, with uncertain prospects.

The main obstacle is the state constitution. Because it currently prohibits most gambling, legalizing sports betting would likely require a constitutional amendment, meaning a two-thirds vote in both legislative chambers and then voter approval in a general election. Until that happens, placing a sports bet in Georgia, in person or online, remains a criminal offense under the statutes above.