Chances for Legalized Gambling in Georgia Slim, But Casinos Still Eyeing Atlanta
Posted on: January 4, 2018, 04:00h.
Last updated on: January 4, 2018, 04:29h.
The odds of finally legalizing gambling in Georgia in 2018 seem to be a longshot at best, but that’s not stopping hospitality and gaming interests from maintaining a presence in the Peach State.
Speaking this week with The Atlanta Journal-Constitution, MGM Resorts Executive VP Alan Feldman said casino developers have Atlanta on their radar. And regardless of whether the Georgia General Assembly fails again to act on gaming legislation, Atlanta will remain on a shortlist of US cities ripe for casino investment.
“Georgians are already gambling at casinos in North Carolina and Alabama, and the tax revenue from that activity is not supporting much-needed programs in Georgia but instead flowing from local communities to neighboring states,” Feldman said.
Feldman’s comments might come as a bit of a surprise after MGM CEO Jim Murren recent told investors that the company’s development cycle is winding down. In November, Murren said that other than Japan, the company was done seeking to build new casinos, and instead was ready to focus on improving current operations.
The Georgia General Assembly is already a dozen days into its 40-day legislative session. Last year, several gambling measures failed to reach a vote.
Georgia on Someone’s Mind
The eighth most populous state in the US, Georgia remains one of only nine states without commercial or tribal casinos. It does, however, have a state lottery, which sold more than $4.5 billion worth of tickets in 2016, the sixth most in America.
Atlanta, the state capital, is also home to the busiest airport in the world. With Hartsfield-Jackson’s more than 100 million aviation passengers each year, and 5.7 million residents in the Atlanta metro area, it’s easy to see why casino operators envision a resort there.
Along with MGM, Wynn Resorts, Las Vegas Sands, Penn National Gaming, Boyd Gaming, and Golden Nugget all have lobbyists working in the state capital to push for casinos.
Lawmakers Inaction
To legalize casino gambling in Georgia, the state constitution requires a ballot referendum. But Georgia’s Republican-controlled assembly, along with Gov. Nathan Deal (R) and the state’s Republican lieutenant governor, have for years opposed any legislation before it gets to the stage of seeing a vote.
New Atlanta Mayor Keisha Lance Bottoms (D), inaugurated on Tuesday, says she would be hesitant about having a casino in Atlanta. She told media after her inauguration that she was open to debate about legalized casino gambling, but was wary about the prospects. “I’d prefer that my mother have to drive to casinos,” she said.
All research and polling indicates widespread popular support for expanded gambling options in Georgia. A poll conducted by The Atlanta Journal-Constitution last year found that 56 percent of likely voters would support land-based casinos.
House Economic Development and Tourism Chairman Ron Stephens (R-Savannah) says he’s willing to buck party leaders on the issue. “I’ll try every way in the world to try and get it done,” he told reporters this week, but admitted anything controversial “is going to be a tough sell.”
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I can understand Atlanta's new Mayor, Keisha Bottoms, not wanting a casino for her constituents; and normally the gaming industry would also prefer a residential or nearby rural location for a major destination casino, than one located downtown. But Atlanta, is very different than St. Louis, Kansas City, Cleveland, Cincinnati or Philadelphia; in that it has 95,000 hotel rooms, and the World's busiest airport, Hartsfield International. All of the casino cities mentioned have a downtown location that is outperformed by one or more residential casinos, most with casino wins 50% to 100% higher than city center addresses. Atlanta is already a major convention/trade show destination; but Las Vegas has proved that having casino gaming nearby greatly increases the number of exhibitors and attendees to most shows or events. Other destinations, that I have been involved in, and concerned about too much gambling by the local population, dealt with the problem in different ways. Singapore charges a hefty entry fee to all residents. The Bahamas does not allow residents to gamble at all. And the resort Island of St. Marten, originally allowed locals to play only once a week. Not all of these solutions would be acceptable under US law, but I think a solution based on the Singapore model could work to diminish local demand. And Mayor Bottoms' concerns might be confirmed by a check of lottery per capita spending, in Georgia and Atlanta's lower income neighborhoods, which might confirm studies in other states that show the highest individual spending in the lowest income neighborhoods. The Mayor's concern seemed to be the nearness of gaming to her residents, but gaming includes the Lottery, that has helped provide a College education to many of her constituents. Currently the Georgia Lottery needs additional revenue, which could be provided by other forms of voluntary taxation, offered by destination casinos, riverboat casinos, slot machines at race tracks, or slots, VLT's or VGT's at other specific type businesses. These could be financed and operated by the State or by licensed casino companies. And if outside developers are preferred, they could be attracted, as long as the tax rates on casino gaming win does not exceed the 50% range on slot and 20% on table win; investments don't exceed the $ billion range; competition is restricted; and the locations suitably located near GA population, or hotel accommodations; and sites are adjacent to Interstate Highways. I have a long history in Georgia, being the youngest paperboy at the Atlanta Constitution (delivering the paper to Bobby Dodd), attending Lovett's, when it was a Country Day School and my Mother a teacher, while my Father managed a downtown hotel; then living at the Fairyland Country Club, on Lookout MT. which my Father managed; and later in Columbus, at high school, where Dad managed the Columbus Country Club. And, as for gaming in Georgia, the Fairyland Club had slot machines and the Lookout MT Hotel, a full casino. With Georgian's as one of the largest audience supporting the Cherokee Casinos in North Carolina, nearby Alabama slots, and Biloxi casinos; and Hartsfield with over 90 flights a day to Las Vegas, Atlanta's residents are probably already spending several $billion or more on casino games, but Georgia is not collecting its share of the potential tax revenue. Mississippi, with 2.99 million residents wins $1.9 billion annually ($635.45 per capita); Louisiana, with 4.68 million residents, wins $3.1 billion ($671.24 per capita) and Iowa with 3.15 million citizens, wins $1.45 billion ($460.32 per capita), and all three per caps are understated because it does not include revenue from those states' Tribal Casinos. It's understandable that Georgia (with 10.4 million residents) does not want the amount of gaming as other states, but it would be reasonably to assume, that 2 or 3 well placed gaming outlets, with the proper amenities, could earn the State a $ billion annually from gaming, for the Hope Scholarship program.