The U.S. state of Georgia is gearing up for a fight to decide gambling’s future there. The fight will see titans battle for the hearts, minds, and possibly pocketbooks (political campaigns) of lawmakers in the state. Although a grassroots organization or two will lend their voices to their side of the debates, the fight will become a display of the shadowy side of internal American politics –  a landscape where money and power are leveraged, ears and arms bent, and trade-offs made – not always in the best interests of the citizens who are supposed to be represented in the state capital.

According to the Atlanta Journal, so far at least 21 lobbyists have registered with the Georgia ethics commission to influence politician’s votes. 14 of those were hired by MGM Resorts alone. But the opposing side is not taking any chances their voices will be drowned out. Some of those interests are “moral enforcers” like the Faith and Freedom Coalition, but nearby gambling concerns who stand to lose Georgian customers to casinos closer to home are in the mix too, such as Beau Rivage in Biloxi.

The Faith and Freedom Coalition is headed up by  Ralph Reed. Readers may recall that Reed lost his 2006 bid for lieutenant governor after the Jack Abramoff scandal broke. Abramoff, immortalized in the movie, “Casino Jack” (as well as newspaper front pages as the man with White House access turned himself into a federal prison) contracted with Reed’s PR firm to keep casinos from opening that would compete against some of Abramoff’s clients running Native American casinos.

Although it’s easy to follow the money and suppose the motives of the lobbyists gunning for passage of a casino bill, it’s not so easy to see where the funding for the Faith and Freedom Coalition comes from. As a “social welfare” organization they aren’t required to report the source of their funds. These are the kind of organizations funneling untold billions into American politics whose contributions are usually referred to as “dark money”, because there is no transparency and sources never see the light of day under current law.

Currently, Georgia is the least gambling friendly state in the U.S. led only by Utah and Hawaii. Unlike Utah and Hawaii, Georgia has a lottery. The state also allows some forms of charity gaming such as bingo. All other forms, including parimutuel horse racing are considered illegal.

One person who presumably needs to come on board with the idea of legalized gambling in the state is Governor Nathan Deal. In 2012 a majority of Republicans handed him a bill that would authorize a casino with proceeds going to education – he returned it with a veto saying he wanted to see a “larger majority” pass the bill. A two-thirds majority in both houses would remove him from the equation. Although still firmly against the idea of gambling in the state, earlier this year the governor let on that he may swing in favor of it if a high enough level of taxation was brought into the equation.

2 Responses

  1. Steven Norton

    Some Georgia opponents will be concerned about casino impacts on the State Lottery and on compulsive gaming. When we opened Resorts International in 1978, we not only provided financial support, we advertised the Compulsive Gaming Hotline in our casino. And when the Massachusetts’ Senate was considering resort casinos and slots at race tracks, they were concerned about an impact on the US’ most successful lottery; so I prepared a study of lottery revenue impacts after casinos were introduced. Only 2 states saw small declines, Louisiana and Iowa; both with more gaming positions, compared to the population, that any state, but Nevada. Louisiana has 15 riverboat casinos, tribal gaming, and slots at racetracks, bars and truck stops. Iowa has 20 casinos at tracks and riverboats and 3 tribal casinos.
    Georgia with a substantially larger population, and far fewer casino proposed, should not see any negative growth of its Lottery. And if casino gaming is introduced properly, it will bring back many residents now going to Biloxi (MGM says over 1 million per year), and Atlanta’s Hartsfield has over 2 million seats a year going just to Las Vegas. Plus if Atlanta builds a destination resort, like MGM, LV Sands, Wynn or Hard Rock could finance, more conventions and trade shows would attract millions of new visitors to the Capital. And tourism resorts like Savannah, would see occupancies and average rates increase, because of this new adult attraction.
    New Jersey’s casino Legislation saved Atlantic City, but allowing an unlimited number of casinos have precipitated recent closings. Surrounding states have approved gaming, that is more convenient to Philadelphia, Baltimore, NY City and New Jersey, than to our shore resort.
    If Georgia only enjoyed the same revenues as a downsized AC does today, at the 35% win tax suggested by Senator Cowsert, GA would see another $billion annually, in contributions to the HOPE Scholarship Fund.

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    • Skip Diacin

      Georgia, the present Governor, and citizens of the state have to put “On their Big Boy Pants” and move out of the “Stone Age” and into the 21st century. In this time and its environment there are really things such as resort casinos and race track gambling……Really. Some of these counties that have casinos also enjoy the absence of some taxes that are relived by the dollars taken in from by the casinos and the dollars spent there. If Georgia is to grow and compete with other states that have gambling and such we need to put aside our backwoods thinking and take a peek into the 21st century. There we will see that there is a pay back that is realized from the presence of modern day casinos. The time to see the state grow and attract more tourism and move out of the “Backwoods Era” is upon us and the time to make the transition is now.

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