The Georgia Senate Regulated Industries Committee recently debated Senate Bill 79, sponsored by state Senator Brandon Beach, which would allow two “destination resorts” in the state. One in the Atlanta area would require a minimum billion investment; the other would require a 0 million in a county with a population of at least 180,000 people, which would allow Columbus, Savannah or Augusta to seek a license. The second casino would have to be within 30 miles of a major convention center, however. The properties would be required to offer 40 percent gaming and 60 percent entertainment. If the measure passes, a statewide referendum would be held in November 2018 for voters to determine if state constitution should be amended to allow casino gambling. The bill would impose a 20 percent tax on gross gaming revenue.
Compared to last year’s failed legislation, Senate Bill 79 proposes two instead of five licenses. Also, 30 percent of casino tax revenue would go to fund the HOPE Scholarship, 30 percent to a new needs-based scholarship and another 30 percent to rural hospitals and health care. The destination of the final 10 percent is still being negotiated. Also the population minimum requirement is lower.
About 40 lobbyists representing various gaming interests are working to pass legislation this year. Governor Nathan Deal has said he’s willing to discuss the possibility of allowing casino gambling but only if it does not affect the state-run lottery, which pays for the HOPE scholarship program but has been struggling to keep up with demand.
At the well-attended hearing, Beach said “We’re looking at a minimum of a $2.45 billion investment that will create somewhere in the vicinity of 7,500 permanent jobs. That’s not even counting the construction jobs.” Beach added a recent survey indicated 22 percent of Atlanta convention visitors said they would not return because of the lack of nightlife. “Entertainment is a big piece of getting the convention business. We need to make sure we have some night-time entertainment. I don’t just want a casino, I want something nice, with high-end retail, high-end restaurants,” Beach said.
American Gaming Association Vice President Erik Balsbaugh added, “Gaming popularity in the United States is at an all-time high. It’s more mainstream and popular than ever before.”
However, Central Atlanta Progress President A.J. Robinson said his group, which promotes the city’s downtown district, has not taken a position against gambling legislation. But a study it commissioned last year suggested a downtown casino would attract locals, not tourists, and that could harm existing businesses and attractions. “Casinos generate a lot of money, but they have their drawbacks,” Robinson said.
Anti-gambling advocate Mike Griffin with the Georgia Baptist Mission Board said, “The fact that we’re using all of these ornaments now being placed on the Christmas tree, it’s almost like 30 pieces of silver to everybody to buy them off so they’ll get into this.”
Georgia Horse Racing Coalition President Dean Reeves noted parimutuel betting was left out of the legislation. “While the horse racing coalition recognizes that our industry alone does not meet the threshold of a mega-casino in downtown Atlanta, we do know, based on our research from other states, the economic impact on rural and agricultural areas of Georgia will be proportionately more significant than a mega-casino in Atlanta,” he said.
The committee plans to hold at least one more hearing on the bill. The House has not yet acted on a gambling bill sponsored by state Rep. Ron Stephens.
