New Gaming Bill Focuses On “Destination Resorts”
Senator Brandon Beach has introduced a revised bill that would pave the way for Las Vegas style casino gaming in Georgia, SB 79. Representative Ron Stephens has a companion bill in the Georgia House, HB 158. Unlike previous attempts, this bill pares back the number of casinos to two and focuses the scope on “destination resorts”. What does that mean?
Under the prior bill there was to be one “Destination resort” casino with a minimum $1 Billion investment in the Atlanta area/North Georgia, and up to six additional casinos throughout the rest of the state that would have been smaller, more locally focused casinos.
The new bill has one casino located in “a county with a population over 900,000” that would require a minimum $2 Billion capital investment to gain a license. Currently, Fulton County is the only county with over 900,000 residents, but in theory Gwinnett County could conceivably qualify depending on the final language and date population is figured. Gwinnett’s population is currently estimated at 896,000 people.
The second casino license would require a minimum of $450 Million investment, and would be located in a county with greater than 250,000 population but less than 900,000. While the working assumption is that this would be a casino located in Savannah (and even more specifically, adjacent to the Convention Center on Hutchinson Island), the counties that currently fit this description are Gwinnett, Cobb, DeKalb, Chatham, and Clayton. Cherokee at 236,000 people, like Gwinnett above, is close enough to be considered in the theoretical discussion but is not likely the intended designation for the state’s second casino license.
Interestingly, there’s enough wiggle room to consider the casino could be at the airport in Clayton County, as some recent speculation has suggested. Hartsfield-Jackson’s complex straddles the Fulton-Clayton line.
The reality of the bill is that the larger “Destination” casino will be in the Atlanta area, in Fulton County. A gaming company that would put up a $2BN investment will not want another destination resort in the same area code. Thus, Chatham should be considered most likely for the second casino under this plan, to boost the coastal city’s convention and tourism industry. These will be complementary, not competing, venues.
The revenues generated from gaming operations would be taxed under this bill at 20%, up from 12% in the prior working bill. The casinos would not receive economic development incentives from the state.
As an editorial note, this bill cleans up a lot of issues legislators heard after the prior bill was filed. It is focused more on keeping gaming dollars at home that currently leave Georgia and bringing in additional dollars from conventioneers and tourists. As such, it’s an issue I will be supporting at PolicyBEST. As now structured, this is an opportunity to bring a new industry to the state, with professional career above average wage jobs for the hospitality industry. There’s a workforce development component here, as the companies will have to train Georgians to work in the gaming industry. (It’s not like we have a few thousand blackjack dealers hanging around – they’ll have to be trained.) And as far as tax policy goes, it’s a way to recapture a lot of Georgia’s dollars that are currently going elsewhere, as well as bring in additional dollars not currently coming here.
This remains an uphill battle, but one deserves a fair hearing on the merits. I look forward to the discussion over the next couple of months as we determine if now is the appropriate time for gaming in Georgia.
About Author
Charlie
Founder of GeorgiaPol.com; Now weekly columnist Very interested in Georgia and Georginas. Interest in politics is waning daily.
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I am disappointed Columbus was not included. Dr. Bob Wright has pitched a $200 million facility in South Columbus – a promise on which I am certain he could deliver. If we’re going to have gaming, allow all metropolitan areas to license one.
For sake of this post, I’m going to ignore the moral question and the government regulation question – simply working inside the context of the Bill as dropped. All areas of the State should be allowed to reap the benefits of “Destination Resorts” [Eyes fully rolled to the back of my head].
I don’t know I support casinos in all areas, but I certainly support a third one being located in Columbus.
Does anyone know if this bill becomes law, does it open the door for tribal casinos to enter Georgia? I seem to remember this was a problem in other states that legalized casino gambling.
It is my understanding that there are no federally recognized tribes in Georgia. So no tribal casinos.
I’m for the casinos but the details….? With the bar high on initial investment and county population why legislate the number ? And to just be a continuing thorn, why not designate transportation in the state rake?
AJC
“The “resorts” would be taxed at 20 percent, well above the industry’s preferred rate of about 12 percent and much closer to Gov. Nathan Deal’s preferred rate of 24 percent.”
“Beach said 70 percent of proceeds from gaming would go toward the state’s popular Hope Scholarship, a merit-based state-funded college scholarship program. The other 30 percent would go toward a new needs-based scholarship.”
Apart from a touch of cronyism and weak ethics, Deal has done a decent job from my perspective. I’m with him a 24% tax rate.
Slot machines pay the freight at casinos, so expect several thousand of them spread over acres. Consumers will want poker, blackjack, and other table games. There will be plenty of shopping available for non-gamblers, just like the mall, or Las Vegas.
The MGM National Harbor has been mentioned several times as an exemplar for this type of extra-Nevada casino development. The MGM claims their project cost only $1.4B so a comparable Atlanta spot would have to be bigger/more elaborate/wait for inflation. They mention they’ll feature “leading performers including Bruno Mars, Boyz II Men, Cher, Duran Duran, Lionel Richie, Ricky Martin, Sting, Earth Wind & Fire and more”. I promised to stop making fun of other people’s taste in music but wouldn’t that billing appeal mostly to a demographic that’s closely aligned with state reps, their spouses, and their business associates?
http://dc.about.com/od/touristattractions/a/Casino-At-National-Harbor-Maryland.htm
No need for dedicated tribal soils The Seminole Tribe bought Hard Rock International last year for about a billion dollars and then the connections, Seminole County history plus our love for the chant and chop. Crazy not to give them first dibs.
“Beach said” I say I like Biloxi because you can gamble all night and beach all day. Who want’s to go to Atlanta? Put them on the beach.
Wants to go: A business group with two billion dollars……and getting an exclusive beach……no pun intended….
Jeff Bezos owner of the Post is no Trump fan – he runs a good business but I’d imagine the Post reporters wouldn’t want to disappoint…….
Thanks for the public service of preparing this post.
The flip side of the legislation is the amount and allocation of the new revenue. The revenue stream needs to be part of the discussion, particularly the amount. The objective is maximizing revenue—Hassinger recently posted to that affect about the lottery. Those principles should be applied in developing this legislation.