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Call Now: 904-383-7448(a) Except as herein specifically provided in this Paragraph VIII, all lotteries, and the sale of lottery tickets, and all forms of pari-mutuel betting and casino gambling are hereby prohibited; and this prohibition shall be enforced by penal laws.
(b) The General Assembly may by law provide that the operation of a nonprofit bingo game shall not be a lottery and shall be legal in this state. The General Assembly may by law define a nonprofit bingo game and provide for the regulation of nonprofit bingo games.
(c) The General Assembly may by law provide for the operation and regulation of a lottery or lotteries by or on behalf of the state and for any matters relating to the purposes or provisions of this subparagraph. Proceeds derived from the lottery or lotteries operated by or on behalf of the state shall be used to pay the operating expenses of the lottery or lotteries, including all prizes, without any appropriation required by law, and for educational programs and purposes as hereinafter provided. Lottery proceeds shall not be subject to Article VII, Section III, Paragraph II; Article III, Section IX, Paragraph VI(a); or Article III, Section IX, Paragraph IV(c), except that the net proceeds after payment of such operating expenses shall be subject to Article VII, Section III, Paragraph II. Net proceeds after payment of such operating expenses shall be separately accounted for and shall be specifically identified by the Governor in his annual budget presented to the General Assembly as a separate budget category entitled "Lottery Proceeds" and the Governor shall make specific recommendations as to educational programs and educational purposes to which said net proceeds shall be appropriated. In the General Appropriations Act adopted by the General Assembly, the General Assembly shall appropriate all net proceeds of the lottery or lotteries by such separate budget category to educational programs and educational purposes. Such net proceeds shall be used to support improvements and enhancements for educational programs and purposes and such net proceeds shall be used to supplement, not supplant, non-lottery educational resources for educational programs and purposes. The educational programs and educational purposes for which proceeds may be so appropriated shall include only the following:
(1) Tuition grants, scholarships, or loans to citizens of this state to enable such citizens to attend colleges and universities located within this state, regardless of whether such colleges or universities are operated by the board of regents, or to attend institutions operated under the authority of the Department of Technical and Adult Education;
(2) Voluntary pre-kindergarten;
(3) One or more educational shortfall reserves in a total amount of not less than 10 percent of the net proceeds of the lottery for the preceding fiscal year;
(4) Costs of providing to teachers at accredited public institutions who teach levels K-12, personnel at public postsecondary technical institutes under the authority of the Department of Technical and Adult Education, and professors and instructors within the University System of Georgia the necessary training in the use and application of computers and advanced electronic instructional technology to implement interactive learning environments in the classroom and to access the state-wide distance learning network; and
(5) Capital outlay projects for educational facilities;
provided, however, that no funds shall be appropriated for the items listed in paragraphs (4) and (5) of this subsection until all persons eligible for and applying for assistance as provided in paragraph (1) of this subsection have received such assistance, all approved pre-kindergarten programs provided for in paragraph (2) of this subsection have been fully funded, and the education shortfall reserve or reserves provided for in paragraph (3) of this subsection have been fully funded.
(d) On and after January 1, 1995, the holding of raffles by nonprofit organizations shall be lawful and shall not be prohibited by any law enacted prior to January 1, 1994. Laws enacted on or after January 1, 1994, however, may restrict, regulate, or prohibit the operation of such raffles.
(Ga. Const. 1983, Art. 1, § 2, Para. 8; Ga. L. 1991, p. 2035, § 1/HR 7; Ga. L. 1994, p. 2024, § 1/SR 107; Ga. L. 1998, p. 1686/SR 529.)
- Art. I, Sec. II, Para. XI.
- The constitutional amendment (Ga. L. 1991, p. 2035, § 1) which revised this Paragraph to provide that the General Assembly may enact legislation providing for the operation and regulation of a lottery by or on behalf of the state and providing for distribution of proceeds was approved by a majority of the qualified voters voting at the general election held on November 3, 1992.
The constitutional amendment (Ga. L. 1994, p. 2024, § 1) which added subparagraph (d) was approved by a majority of the qualified voters voting at the general election held on November 8, 1994.
The constitutional amendment (Ga. L. 1998, p. 1686) which substituted the present provisions of subsection (c) for the former provisions which read: "The General Assembly may by law provide for the operation and regulation of a lottery or lotteries by or on behalf of the state and for any matters relating to the purposes or provisions of this subparagraph. Proceeds derived from the lottery or lotteries operated by or on behalf of the state shall be used to pay the operating expenses of the lottery or lotteries, including all prizes, without any appropriation required by law, and for educational programs and purposes as hereinafter provided. Lottery proceeds shall not be subject to Article VII, Section III, Paragraph II; Article III, Section IX, Paragraph VI(a); or Article III, Section IX, Paragraph IV(c), except that the net proceeds after payment of such operating expenses shall be subject to Article VII, Section III, Paragraph II. Net proceeds after payment of such operating expenses shall be separately accounted for and shall be specifically identified by the Governor in his annual budget presented to the General Assembly as a separate budget category entitled 'Lottery Proceeds' and the Governor shall make specific recommendations as to educational programs and educational purposes to which said net proceeds shall be appropriated. In the General Appropriations Act adopted by the General Assembly, the General Assembly shall appropriate all net proceeds of the lottery or lotteries by such separate budget category to educational programs and educational purposes as specified by the General Assembly." was approved by a majority of the qualified voters voting at the general election held on November 3, 1998.
- For article, "The Georgia Bill of Rights: Dead or Alive?," see 34 Emory L.J. 341 (1985). For article on resolutions proposing to amend this paragraph, see 23 Ga. St. U.L. Rev. 1 (2006). For note discussing organized crime in Georgia with respect to the application of state gambling laws, and suggesting proposals for combatting organized crime, see 7 Ga. St. B.J. 124 (1970). For comment on Boyd v. Piggly Wiggly S., Inc., 115 Ga. App. 628, 155 S.E.2d 630 (1967), see 2 Ga. L. Rev. 132 (1967).
- The bingo amendment is intended to allow only nonprofit organizations to benefit from bingo, and to the extent bingo proceeds are diverted from nonprofit groups this intent has been frustrated. St. John's Melkite Catholic Church v. Commissioner of Revenue, 240 Ga. 733, 242 S.E.2d 108 (1978).
- Legislature in the use of the phrase "shall be legal" in this paragraph, instead of some other phrase which would more clearly delineate the power of the legislature to regulate legal bingo, has prevented the prohibition of bingo in general, and the hindering of the operation of bingo games, and to this extent the police power has been circumscribed. But this does not mean that the state's police power has been emasculated so that the legislature is without power to outlaw abuses of the right to operate bingo games. St. John's Melkite Catholic Church v. Commissioner of Revenue, 240 Ga. 733, 242 S.E.2d 108 (1978).
Three ingredients are necessary to constitute a lottery or gift enterprise - prize, chance, and consideration. Boyd v. Piggly Wiggly S., Inc., 115 Ga. App. 628, 155 S.E.2d 630 (1967).
Consideration as an ingredient of a prohibited lottery or gift enterprise is shown when there is present, in the actual working of the sales promotion scheme, a class of persons who, in addition to receiving or being entitled to chances on prizes, supply consideration for all the chances in bulk by purchasing whatever the promoter is selling, whether the purchasers were required to do so or not under the wording of the promoter's rules. Boyd v. Piggly Wiggly S., Inc., 115 Ga. App. 628, 155 S.E.2d 630 (1967).
Test of a lottery is in its working rather than in its wording. Boyd v. Piggly Wiggly S., Inc., 115 Ga. App. 628, 155 S.E.2d 630 (1967).
- Certain games involving the purchase of lottery tickets did not fall within the definition of improper "casino gambling" and the creation and operation of the games was a lawful exercise of the authority of the Georgia Lottery Corporation. Jackson v. Georgia Lottery Corp., 228 Ga. App. 239, 491 S.E.2d 408 (1997).
- A "closed participation" gift enterprise scheme - that is, one which is open only to patrons purchasing goods, services, or whatever the promoter is trying to push by the scheme - is illegal and contrary to public policy. Boyd v. Piggly Wiggly S., Inc., 115 Ga. App. 628, 155 S.E.2d 630 (1967).
Cited in Smith v. City of Albany, 97 Ga. App. 731, 104 S.E.2d 488 (1958); Midway Youth Football Ladies Auxiliary, Inc. v. Strickland, 449 F. Supp. 418 (N.D. Ga. 1978).
- Granting bonus or rebate to customer who subsequently provides for additional sales of product is not a lottery which would be illegal. 1962 Op. Att'y Gen. p. 447.
- If a statute is enacted pursuant to a specific constitutional provision, and the Constitution is later modified, the statute nevertheless continues to be effective, unless it conflicts with the new constitutional provision; therefore, the Bingo Act, Ga. L. 1977, p. 1164 (see now O.C.G.A. § 16-12-50 et seq.), remains effective to authorize the Revenue Department to license and regulate certain nonprofit bingo games after the effective date of the 1978 amendment to this paragraph. 1978 Op. Att'y Gen. No. 78-87.
- The use of lottery proceeds for educational programs and educational purposes is authorized by the Georgia Constitution; however, it was not the intent of the General Assembly that the Georgia Student Finance Commission comply with the Fair and Open Grants Act, O.C.G.A. § 28-5-120 et seq., in administering the HOPE Scholarship, Hope Grant, and other state scholarship and grant programs. 2002 Op. Att'y Gen. No. 2002-2.
- 38 Am. Jur. 2d, Gambling, § 1 et seq.
- 54 C.J.S., Lotteries, § 1 et seq.
- Scheme for advertising or stimulating legitimate business as a lottery, 57 A.L.R. 424; 103 A.L.R. 866; 109 A.L.R. 709; 113 A.L.R. 1121.
Constitutionality of statute which affirmatively permits certain forms of betting or gambling, 85 A.L.R. 622.
Coin-operated or slot machines as lottery, 101 A.L.R. 1126.
"Numbers (or number) game" or "policy game" as a lottery, 105 A.L.R. 305.
Punchboard as a lottery, 163 A.L.R. 1279.
Promotion schemes of retail stores as criminal offense under antigambling law, 29 A.L.R.3d 888.
Validity and construction of statute exempting gambling operations carried on by religious, charitable, or other nonprofit organizations from general prohibitions against gambling, 42 A.L.R.3d 663.