The Georgia General Assembly will convene January 11, 2021 but bills that would legalize sports betting, parimutuel horseracing and casino resorts already have been pre-filed.
State Rep. Ron Stephens, chairman of the House Economic Development and Tourism Committee and a long-time gambling supporter, said, “If it’s going to happen, it’s going to happen in this next session. The people want it. Opinion polls and more importantly public hearings show that. It’s time the legislature give Georgians that opportunity.” Stephens has sponsored—unsuccessfully—legislation in each of the last three two-year legislative sessions.
State Rep. Calvin Smyre, the longest-serving member of the legislature (46 years), added legalizing gambling “requires heavy lifting, and heavy lifting always requires bipartisanship. I think we have that muscle right now.”
Changing the state constitution to allow gambling first would require that lawmakers pass a measure that Governor Brian Kemp would sign. Then a statewide ballot referendum would be a required, and local communities also would hold referendums.
Most likely, sports betting would pass first, Stephens said he noted thousands of Georgians already bet on football, basketball and golf online; the only infrastructure requirement would be a method to collect taxes on it. However, the state enacted an e-commerce tax in 2019.
Stephens added, legalizing sports betting is the “path of least resistance,” since it could be implemented without a statewide vote and operated by the Georgia Lottery “as just another game for them.” Still, sports betting would be less financially promising than casinos or horseracing. Analysts have projected sports betting could generate $30 million to $50 million in annual tax revenue.
Lawmakers have differing opinions regarding where to direct those tax revenues. In the past it was automatically assumed they would supplement the Georgia Lottery’s HOPE scholarship program. However, state Rep. Alan Powell said, “Casino gambling should go to the Number One hole in the budget: health care. There’s never been enough money and there never will be without it.”
Smyre stated, “I’m advocating for needs-based scholarships for those students who don’t qualify academically for the HOPE scholarship. And we need to come up with a stop-gap scholarship to help those already enrolled and close to graduation but have run out of money.”
Stephens noted both horseracing and casino gambling would be economic drivers and job creators. A pro-horseracing movement gained steam in 2019; supporters noted horses could be bred in rural areas that have lagged behind the state’s population centers in growth and development.
Casino proponents are pushing for destination resorts and have identified feasible locations like a large lakefront tract in Hartwell and interstate frontage near Augusta, Valdosta, Kingsland and Hinesville. Atlanta Speedway owners Bruton and Marcus Smith want to add a casino, horseracing track and sportsbook to their speedway complex outside the city.
Savannah is another likely site for a casino resort. Two interstates intersect nearby, and the city is on the state line with South Carolina where gambling is illegal. A casino on Hutchinson Island has been discussed as far back as 2014. However, several current members of the Savannah city council oppose a casino within the city limits on moral grounds, claiming gambling addiction would increase and low-income residents would be disproportionately impacted. They also stated most of jobs created by casino resorts would pay low wages. The council was about to draft an anti-gambling resolution just before the Covid-19 pandemic hit.
Stephens responded casino developers are more likely to consider property in areas of Chatham County along Interstate 95 than Savannah locations. “Look at a city like Port Wentworth, the first exit on the interstate on the Georgia side of the border. They’d end up with more new business and more tax revenue than they’d know what to do with,” Stephens said.
