Georgia Governor Nathan Deal told local media that he would oppose the proposed legislation that calls for the legalization of casino gambling and pari-mutuel activities. State legislators have already been considering the said legislation and talks are expected to continue in the new legislative session, which is set to begin in January 2016.
This was the first time that Gov. Deal said that he would be an active and vocal opponent of the establishment of casinos within the state’s borders. He had previously said that he had not been particularly keen on the idea but he would just stand back.
Now, the governor is determined to make his point clear to the General Assembly members. Gov. Deal also told local media that he does not believe the launch of casinos and the legalization of horse racing betting activities would in any way improve the quality of life of Georgians.
However, the governor noted that he may change his mind, provided that casino operators willing to open venues in the state agree to higher tax rate than the initially proposed one. Under the proposed casino bill, companies are to annually contribute 12% in gambling taxes to Georgia. Gov. Deal said that if those companies agree to a 24-35% tax rate, he may eventually back the effort.
Many were taken by surprise by the governor’s statement as up until now, proponents of the proposed legislation were more vocal than its opponents. Advocates of the legalization of pari-mutuel betting were, too, particularly active since the moment the casino bill was presented to state legislators.
Both House and Senate study committees have already begun holding hearings on what the impacts of legalized casino gambling may be. An estimate suggested that more than $280 million would be annually contributed in tax revenue. The money is to be used for Georgia’s HOPE scholarship, known to be the state’s top education program.
Legislators have been looking for ways to boost the HOPE program as well as other education programs for some time now as they have been facing numerous setbacks in keeping up with the growing demand. Currently, the said programs are mainly funded by proceeds from the state lottery, which annually returns to the state 25% of its overall revenue. Lawmakers have been lobbying for the lottery to start returning 35% of the money it makes out of ticket sales.
Although the proposed casino bill is yet to be voted on, a number of gambling operators have already expressed interest in opening venues in Georgia. Las Vegas-based casino giant MGM Resorts International was among the most prominent ones. Jim Murren, CEO and President of the company, recently talked about their plan for a $1-billion casino resort in downtown Atlanta, which is expected to employ over 3,500 people once fully operational.
It is still early to predict whether Gov. Deal’s comments would be instrumental to the possible failure of the casino bill or it would eventually be signed into law. Yet, his opinion does carry weight and most certainly, there will be long and maybe heated debates on the proposed legalization of casino industry in the months to come.
