Georgia lawmakers have yet again rekindled the debate over the potential legalization of casino-style gaming and other forms of gambling on the territory of the state to help fund the cash-strapped HOPE scholarship program.
State legislators are understood to be discussing the addition of casinos, horse racing, and sports betting, and experts advise that the type of activity that could be allowed would greatly determine how much money Georgia can raise.
Jennifer Roberts, Associate Director of the International Center for Gaming Regulation at the University of Nevada, Las Vegas, said that the fact that Georgia is relatively isolated from other gambling is a valid case for expanding the state’s industry.
According to Ms. Roberts “gambling does bring economic benefit to states,” but “any form of gambling is a policy decision for each state” and “policymakers have to decide what the smartest approach is for their state.”
The gambling expert further elaborated that sports betting is an activity that works best when paired with other options, while when brought as a standalone option, its economic impact is minimal. The latest annual casino revenue report by the American Gaming Association showed that the US commercial casino industry had a record year in 2018, raking in nearly $41.7 billion. Brick-and-mortar facilities generated $9.7 billion in taxes for the states and their host communities.
On the other hand, horse racing has been declining continuously over the years. Ms. Roberts said that horse racing is viewed more as an entertainment activity than gambling. She added that there are so many forms of entertainment now and that is why many horse race tracks around the country incorporate casino gambling.
Funding the HOPE Program
The idea of legalizing casino gambling and the development of destination resorts at select locations around the state, including one in Atlanta, has been floating around the Legislature for years, but has never gained enough traction to be enforced as a law.
The addition of casino gambling and horse racing must first be approved by state voters before being adopted in Georgia’s Constitution.
The state’s Governor, Brian Kemp, has historically been opposed to gambling expansion, but has said that he would not stand in the way of putting an amendment before voters as long as it guarantees that gambling revenues will benefit the HOPE scholarship.
The program was created in 1993 by former Gov. Zell Miller and rewards students with financial assistance at eligible state colleges and universities. HOPE is entirely funded by revenue from the Georgia Lottery. However, funds directed to the program have diminished significantly over the years and some lawmakers have pointed out that expanded gambling could be a good source of much-needed finances.
While the idea of new casinos and expanded horse racing has gained a number of proponents, there has also been staunch opposition to it. According to conservative and religious groups, more gambling options would breed more crime and immoral and addictive habits. Opponents have also been questioning the revenue projections floated by supporters, saying that with more and more states expanding gambling, competition has grown immensely.
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