The recently released second part of the Central Atlanta Progress study, commissioned by a downtown Atlanta business group, indicated legalizing casinos could result in new public safety, infrastructure and social costs for cities and counties. “There are several types of social impacts that need to be considered and planned for including problem gambling, crime, bankruptcy, political corruption and other quality of life issues,” the study said.
It also questioned how much of the estimated $400 million in annual casino tax revenue would be new or if that money otherwise would be spent on nearby restaurants, museums or concert halls, lowering other state and local tax collections. The report also stated people living near the casinos—not tourists—would frequent them most. “For cities like Atlanta with existing tourism appeal, a casino might augment but is not likely to create a big increase in new tourism appeal,” the report said.
CAP President A.J. Robinson noted, “Once the state says yes, the burden falls to local jurisdictions.” He added state and local leaders need to examine these issues and identify sources of money, like casino tax revenues, to help.
Supporters of casino gambling in Georgia said it could create thousands of jobs and pump hundreds of millions of dollars into Georgia Lottery-funded education programs, including the HOPE Scholarship. They noted the CAP report said Georgians spend $570-$670 million a year at out-of-state casinos—money that should stay in Georgia.
But several conservative and religious groups casino gambling, as well as Governor Nathan Deal. House Speaker David Ralston recently said he was “still not sure that casinos in Georgia are consistent with where we want to be as a state.”
State Senator Brandon Beach recently announced he intends to introduce a bill to legalize casino gambling in Georgia. Two-thirds majorities in the state House and Senate would have to approve it in order to place a constitutional amendment on the ballot in 2018. Local approvals also would be required.
Beach said a downtown Atlanta casino would be a major draw for convention business. He said public dollars would not be required for infrastructure. “Add on to that 5,000 jobs. Cities and counties will do well under this plan,” Beach said.
Beach’s bill would tax casino revenue at 12 percent; in comparison, Ohio charges a 33 percent tax rate and Maryland collects more than half of casino revenue in taxes. The CAP study assumed a 20 percent tax rate, estimating four casinos could generate about $2.5 billion in revenue, with $320-$400 million going to the state in taxes. The revenue mostly would come from locals, not tourists, the report said.
State Rep. Ron Stephens said he also will reintroduce his casino gambling bill, but with some modifications. For example, it may propose two casinos in the state, instead of six, and a 20 percent tax instead of 12 percent. Stephens said the measure’s chances of passing are “better than last year. I predict this year we’re probably going to have a vote. If you have a casino in the world, all eyes are focused on Georgia right now. It is the plum,” he said.
Las Vegas-based casino giant MGM Resorts International is a major backer of casino gambling legislation. MGM Resorts officials have scouted sites near the Georgia World Congress Center, and said its new $1.4 billion resort complex at National Harbor near Washington, D.C., could be a model for an Atlanta casino resort, although Robinson said no downtown site could accommodate a project of that size.
Dozens of lobbyists for casino interests have registered to support pro-casino legislation. Former state House Republican caucus leader Edward Lindsey, a lobbyist with Dentons, the law firm representing Las Vegas-based Wynn Resorts Development, said, “Georgia has the benefit of seeing what has worked well in other states and the problems that have come up.”
Robinson said the CAP board has not yet taken a position on casinos. He said members have a wide range of opinions on the issue, and added the report was commissioned to provide independent data for lawmakers and business leaders. Regarding casino supporters, Robinson said, “I don’t think they’ve made a compelling case yet why we need to do this.”
