A new study commissioned by Central Atlanta Progress, a downtown business coalition, indicated four casino resorts in Georgia could raise hundreds of millions in tax revenue—but most visitors would be locals whose casino spending could cannibalize other aspects of the economy.
CAP Chief Executive Officer A. J. Robinson said the report, prepared by hospitality consultants HLT Advisory and Horwath ATL, was designed to provide independent data for legislators who are certain to revisit the issue—with input from scores of lobbyists–in the next session. Robinson said, “There’s not enough information that is compelling in this to say we’ve got to have it. There’s probably not enough information to kill it. Our whole intention is to get educated.”
Robinson said he is neutral regarding casino gambling, but added although a 2015 Atlanta Journal-Constitution poll showed most Georgians support legalized casinos, they would not necessarily want one in their neighborhood. That’s perhaps why downtown is considered a preferred location, Robinson noted. “At the moment, we’re trying to grasp the compelling reason to have it in downtown,” he said.
Robinson added CAP plans to fund additional studies regarding casino gambling’s impact on job creation, property tax values, sales tax, discretionary spending and social impact.
The CAP report said a casino industry in Georgia could generate $2.2-$2.5 billion a year, and that a proposed 20 percent casino tax rate could raise $320-$400 million in annual state revenue. Georgia Lottery revenues possibly could decrease as a result of casinos, but casino tax revenue would make up the loss.
The report also said Georgia casinos could recapture some of the $570 million Georgians reportedly spend each year in out-of-state casinos. However, legalized gambling would not necessarily attract more tourists. Also, Robinson said existing hotels could be hurt by a casino resort downtown.
Last July, MGM Resorts International scouted downtown Atlanta for sites to build a $1 billion gambling resort. A bill was introduced in the legislature to change the state constitution and allow up to six casinos, which, at a 12 percent tax rate, would have generated more than $280 million a year for HOPE Scholarships and provided 10,900 jobs. The measure later was amended to allow up to four casino resorts, but the proposal stalled as Governor Nathan Deal indicated he wanted a higher tax rate than casino interests preferred.
