A Georgia legislative committee appointed to study ways to fill a budget gap in the lottery-funded HOPE scholarship program held its first public meetings in Atlanta on Monday and Tuesday. Proponents of the legalization of casinos in Georgia used the opportunity to introduce their plans as a solution to the serious funding gap.
The said legislative committee has up until December 1 to propose possible ways for increasing funds for the scholarship program. HOPE was initially designed to finance its expenses through lottery proceeds. However, demand for scholarships exceeded lottery revenue, which eventually resulted in Georgia Gov. Nathan Deal reducing the number of HOPE recipients back in 2011.
State legislators have previously proposed the legalization of casinos and/or horse racing within Georgia’s borders but have met quite vocal opposition. Now, as the state is looking for ways to fill the scholarship program’s budget gap, it seems to be ready to once again discuss the potential gambling expansion.
Recently, State Representative Ron Stephens (R-Savannah), Chairman of the House’s Economic Development and Tourism Committee, proposed a constitutional amendment, which called for the establishment of up to six casinos in Georgia, but no more than two in a given region.
If Rep. Stephens’ gets the necessary approval, the gambling venues would be charged millions of dollars for licensing fees. They would also have to annually contribute 12% of their overall revenue to the state. No less than 90% of the tax proceeds would go to various educational programs, with the HOPE scholarship one being a top priority.
If the state Legislature approves the proposed amendments by the end of 2015, those will be ready to be voted on on a statewide referendum in 2016.
It is not a surprise that Rep. Stephens’ proposal has met some strong opposition by fellow legislators, lottery representatives and other concerned parties. A number of GOP lawmakers said that they would not approve any proposed expansion of the state gambling industry. In addition, the Georgia Lottery Corp. said that if casinos and/or horse racing are given the green light, this would result in a considerable decrease in lottery sales.
What is more, Gov. Deal himself does not seem particularly keen on the establishment of casinos and horse racing facilities. He has previously pointed out that the benefits of such an expansion simply do not outweigh the drawbacks.
Yet, he has reminded that he would not have to sign the proposed amendments, if Georgia residents vote in their favor. Under the state laws, a given legislation takes effect if the governor does not sign or veto it within 40 days after the Legislature has been adjourned.
Jim Murren, Chairman and Chief Executive Officer of MGM Resorts International, was among those who spoke in favor of the legalization of casino gambling in the state, saying that his company has long been interested in opening a $1-billion casino resort in downtown Atlanta. Apart from gambling options, it would feature concert facilities, food and beverage, and different entertainment options.
If approved, the project would create between 3,000 and 4,000 construction jobs and 4,000 to 5,000 permanent ones.
Mr. Murren also argued that if Georgia allows the establishment of casinos within its borders, those would bring millions of dollars to the state and its educational programs and would prevent residents from spending their money in gambling facilities in neighboring states.
As for horse racing and its potential legalization, Georgia Horse Racing Coalition President Dean Reeves said that a horse racing track in Atlanta or its surroundings could contribute about $25 million to the HOPE fund.
