Gaming’s relative absence from the southern U.S. could end soon if any of three states move forward to legalize casinos and/or racing.
The Georgia legislative session ended April 2, and as expected, a proposed constitutional amendment that would allow gambling at casinos and horse racetracks was not voted on. However, its sponsor, state Rep. Ron Stephens of Savannah, chairman of the Georgia House Economic Development and Tourism Committee, also proposed a companion bill that would create a study committee to consider the legislation before the next session begins in January. “Let them shoot at it,” Stephens said.
Reportedly Stephens has proposed a constitutional amendment because it cannot be vetoed by Governor Nathan Deal, who opposes expanding gambling beyond the state lottery. Stephens’ goal is to have the amendment question on the November 2016 ballot, which would require a two-thirds vote in both legislative bodies plus voter approval in host cities. A January poll by McLaughlin & Associates indicated 57 percent support casinos, but Governor Nathan Deal has expressed his opposition. It’s estimated that six destination casinos could provide $250 million annually to help fund Georgia’s HOPE scholarship program.
The legislation would require a $1 billion investment for an Atlanta casino and $200 million each for other in state gaming zones. Stephens also has proposed Hutchinson Island in Savannah as a casino site, adjacent to the Convention Center on Hutchinson Island and directly across from the Savannah Riverfront. The casinos would create 10,000 construction jobs and 10,000 permanent jobs. “This is economic development in its purist form,” Stephens said.
Supporters said casinos located in major tourist areas like Savannah would bring more tourists and convention attendees. They added casino development actually benefits urban areas through neighborhood rehabilitation.
Those opposed to Georgia casinos said casinos lead to crime and prey on the poor. Horse owners and breeders also oppose the legislation as it links horseracing to casinos.
Tennessee
The Tennessee House State Government Subcommittee deferred to a summer study committee a proposed constitutional amendment, HJR 87, that would overturn the state’s gambling ban. Sponsored by state Rep. Jason Powell, the proposal to allow casinos would require a two-thirds vote of the legislature plus voter’ approval in the November 2016 election.
“I really think this is an issue we really need to study, we need to look at, we need to have conversations, figure out exactly how much money we’re losing as a state to casinos in other states,” Powell said. He Tennessee loses hundreds of millions of dollars annually to surrounding states’ casinos; in Mississippi, $248 million was collected in gambling revenue in the 2014 fiscal year and 30 percent of gambling revenue between 2007 and 2012 came from residents of Tennessee.
Powell said legislators would have to determine “the rules and processes for having legal gaming in our state.” The measure requires all casino tax revenue to go to K-12 education or gambling addiction programs. “I do want to fund K-12 education, bring in more revenue to the state, help these people in Tennessee, and I think casinos are an option we really need to look at,” Powell said.
Kentucky
The ongoing effort to expand gaming with slots at racetracks and/or stand-alone casinos in Kentucky will gain steam next year, according to the speaker of the state House.
The state legislative session that just ended was the first in five years in which the subject of expanded gaming was not addressed. While two bills were introduced, neither received even a single committee hearing. House Speaker Greg Stumbo, though, says the environment for casino expansion will be ripe in 2016, when the state will have a new governor charged with finding new revenues for a financially strapped budget.
“I’m going to move on my casino bill and ask for hearings on it during the interim,” Stumbo told the Lexington Herald Leader. “It’s part of my personal agenda.”
Governor Steve Beshear has been trying to push expanded gaming through the Kentucky legislature since taking office in 2008. He made the issue part of his campaign platforms in 2007 and 2011, only to see bills fail every year because of Bible Belt opposition and infighting among horseracing interests. Beshear cannot run again because of term limits.
One of the expanded gaming bills that languished in the 2015 session was a constitutional amendment measure sponsored buy Stumbo that would create casinos under the Kentucky Lottery Corporation. Under Stumbo’s plan, there would be a casino in each of Kentucky’s six congressional districts, subject to approval by local voters. Twenty percent of the proceeds would be used to increase purses at the state’s storied racetracks, and 50 percent of revenues would be dedicated to education.
Stumbo has another uphill battle to gain approval of his plan next year, as significant opposition is expected from anti-gaming Republicans and the conservative Family Foundation.
