A much-anticipated piece of legislation was read on the House floor this past week – House Bill 158. HB 158 provides for the state of Georgia to regulate two “destination resorts”. The bill also provides for the creation of the Georgia Gaming Commission. Though the word “casino” does not appear anywhere in the 28-page bill, this is the casino legislation. Last year, it was called casinos; this year it’s called destination resorts. The name has changed, but the issue is the same.
Gambling on HOPE
Casino gambling advocates argue that revenue from casinos is needed to save the HOPE Scholarship. Last year, the Georgia Lottery Corporation (GLC) paid less than 25% of its revenue to education, which is a decrease from the 35% paid in 1995.
Originally, the GLC was required to pay “as nearly as is practical” at least 35% of revenues to education. Had the GLC actually contributed 35% to HOPE, education would have received an additional $400 million last year alone. This amount of money is well above any projections that gambling enthusiasts say their bill will bring to education.
According to HB 158, a 20% tax on gross receipts from the two resorts will be deposited into a “Destination Resort Trust Fund.” The revenue in this trust fund will be managed by the Georgia Gaming Commission. In turn, the Gaming Commission will transfer annually any funds over $5 million to the Georgia Lottery Corporation. The GLC will then give 70% to HOPE and 30% to funding needs-based scholarships.
Two possible outcomes
There are two possible outcomes for HB 158. It will either be voted down in the legislature, or will pass the legislature, be signed by the Governor, and then go on the ballot as a state-wide referendum.
Some people say the issue of casino gambling should be decided in a referendum because it allows the people of Georgia to make the ultimate decision. State-wide referendums serve their purpose fairly when both sides of an issue have relatively equal financial strength. However, the gambling industry will spend millions of dollars on television, social media, and direct mail to convince Georgians that legalized casino gambling will usher in economic prosperity, unlike any our state has ever seen. The anti-casino side has little money to spend in comparison.
Share your opinion
Throughout the session last year, I asked constituents for their opinion on this issue. Of the responses I received, about 60% were against and 40% were for bringing casino gambling to Georgia. I would appreciate feedback from you regarding this issue. Please contact me at [email protected] or 404-656-0325.
About the author: Rep. Dan Gasaway (R-Homer) represents the 28th GA House District. His district includes Stephens and Banks Counties and the southern end of Habersham. Rep. Gasaway is Secretary of the House Human Relations & Aging and Natural Resources & Environment House Committees. He also serves on the House Budget and Fiscal Affairs Oversight, Higher Education, and Insurance Committees.
