Georgia Lawmakers Hear Gambling Pros, Cons

A special Georgia House committee is exploring ways to raise revenue, including expanding gambling. Currently a state lottery is the only approved form of gambling. The committee has heard from several representatives of the industry, including Wynn Resorts, plus opposing religious groups. Governor Brian Kemp (l.), says he opposes casinos but won’t veto a referendum.

Georgia Lawmakers Hear Gambling Pros, Cons

The Georgia House Special Committee on Economic Growth has met several times to study a constitutional amendment that would expand gambling to include casinos, horseracing and sports betting. The only approved form of gambling in the state is the lottery which wasn’t sanctioned until 1992. Lottery revenue funds the state’s HOPE scholarship program.

This year, gambling supporters have been encouraged by Governor Brian Kemp’s request to cut state spending, believing expanded gaming would generate more revenue. Kemp has said he opposes casinos but will not veto a referendum on the issue if he’s assured revenues would benefit HOPE scholarships. Two-thirds of both houses would be required to pass the constitutional amendment—12 state representatives and 37 senators.

State Senator Brandon Beach has proposed bringing horseracing to Georgia for many years. He said, “I have never seen so much energy and so much enthusiasm about this issue. I think there is a momentum to ‘let’s go ahead and let the voters decide.’“ A 2017 poll by the Atlanta Journal-Constitution found 56 percent of Georgians surveyed supported casino gambling.

The House committee was formed by Speaker David Ralston to explore new ventures in Georgia, including expanded gaming. Committee Co-Chairman Alan Powell said, “Our obligation and our duties as members through this is to pick up the positives and the negatives and let the people of Georgia know. And if it goes forward it will be because of the wishes of the public.”

Beach already was leading a committee to study the issue of gambling. Ralston’s spokesman Kaleb McMichen said the speaker has not taken a position. “This is about dialogue and informed decisions. Everybody has always stopped at the question of ‘should or shouldn’t.’ If we’re going to ask the question and ask it completely, folks need to know if it gets on the ballot as a constitutional amendment, what is it going to look like?” McMichen said.

Officials from various gaming interests recently testified before Ralston’s committee. They have about 30 lobbyists working for them in the Capitol.

Wynn Development President Chris Gordon described the opening of the company’s new Boston-area casino. He said the $2.6 billion project was built without state tax breaks and created more than 5,000 jobs; it’s expected to generate $201 million in annual state tax revenue. “You can’t just take the beautiful glossy proposals you’re going to get and believe them. You’ve got to kick the tires,” Gordon said. He added growing the workforce, enhancing urban renewal and community volunteerism have been residual benefits of the new Boston casino.

Poarch Creek Indian Tribal Council Vice President Robbie McGhee noted the benefits of even a small gambling operation. The tribe operates Wind Creek Casino Resort, which began “in the middle of a cotton field,” he said. “It’s something we are proud of and we can do, but not let the Poarch Creek Indians be only about gaming. If you’re going to do any type of gaming, it needs to be focused on creating those destination resort-style places that you can be proud of, that you know that is going to bring that economic return.” McGhee introduced the local county sheriff, who testified that casinos do not cause crime rates to rise.

Georgia Horse Racing Coalition Chairman Carl Bouckaert testified about a proposed $700 million investment including three racetracks, one in Atlanta and two in rural areas. He said the projects would create 19,000 construction jobs and 11,000 permanent jobs, with 7,000 in the rural areas. “Rural Georgia continues to struggle and here’s a really nice opportunity to bring some really nice jobs and industry, sustainable industry to rural Georgia,” Bouckaert said.

Atlanta Motor Speedway President Ed Clark has proposed a $1 billion “major destination resort” including a casino, hotel, convention space, retail, restaurants, entertainment, condos, go-kart track, waterpark and theme park. He said gambling would comprise only 10 percent of the offerings but generate most of the revenue.

Clark said the development would create 3,000 construction jobs and 5,000 permanent jobs. He noted the speedway is located just 29 miles from downtown Atlanta and 21 miles from the Hartsfield-Jackson airport. Also, about 8.5 million people live within a two-hour drive of the speedway.

5,000 permanent jobs in the suburban region near the track.

Conservative groups and religious organizations oppose expanding any form of gaming. Georgia Baptist Mission Board lobbyist Mike Griffin said, “I think this is always an excuse looking for a reason. The gambling industry is seeing this as an opportunity to move this forward.” He said a constitutional amendment gives lawmakers an excuse for avoiding tough decisions, like allowing Sunday liquor sales in 2011.

“What eventually, I think, took that over the goal line for them was all this constant hounding of ‘let the people vote, let the people vote,’ so they would never have to talk about the real issue. But that’s the point you have to understand. Legislators are elected because the people expect them to do all of the heavy lifting.”