Although a recent report by the Pew Charitable Trusts and the Nelson A. Rockefeller Institute of Government found taxes on gambling, tobacco and alcohol do not provide long-term revenue for states, Georgia lawmakers still want to legalize casinos and horseracing to boost the HOPE scholarship program. Pew researcher Mary Murphy said, “Any new or existing sin taxes are unlikely to be a silver bullet for fixing budget challenges.”
The Pew report examined trends from 2008 to 2016 and found gambling revenue typically accounts for a very small percentage of a state’s overall budget. For example, in 2015, gambling revenue accounted for about 10.2 percent of Nevada’s state budget and about 3.8 percent of Georgia’s. Pew researchers wrote, “When a state newly legalizes casinos or racinos, it can expect an initial burst of activity as consumers flock to a new attraction. While casinos do offer short-term padding for budgets, these funds often come at the expense of neighboring states and other casinos in the state.”
Casino legislation sponsor state Rep. Ron Stephens compares Georgians traveling to Florida, North Carolina and other states to gamble in casinos to “stealing HOPE scholarship dollars.” He added, “I want to fully fund the HOPE scholarship. I am not backing away from that issue. We’ve had gambling in Georgia for 25 years. So the way to fund the scholarship is through the way we’ve always funded it.”
Stephens said his proposed bill allowing up to three casinos in the state would strengthen tourism and allow it to surpass agriculture as the state’s highest grossing industry. “Most people don’t realize the impact of tourism and the leverage of the things that it pays for,” he said.
Polls indicate voters support a bill that would let them determine if casinos should be allowed in the state. Governor Nathan Deal strongly opposes casino gambling.
Georgia Horse Racing Coalition President Dean Reeves, owner of Reeves Thoroughbred Racing, said the organization plans to promote a bill that would allow a 300-acre horseracing facility with revenue going toward HOPE or the University of Georgia’s veterinary school. He said besides the revenue the project would generate, the mixed-use facility would have a wide-ranging economic impact. “This will bring a multitude of jobs, a variety of jobs, and it will also impact the entire state. This would be a $500 million facility. I’ve seen a proposal that includes not only a racetrack, but it would have hotels, apartments, restaurants. It would be a destination spot for people,” Reeves said.
In 2016, gambling industry lobbyists contributed more than $200,000 to the campaigns of leading Georgia legislators.