Casinos are no surefire jackpot in Georgia, study says

While some Georgia officials are hoping to hit the jackpot with a new stream of revenue, a recent study cites some of the problems that could arise with casino gambling in the Peach State.

The Central Atlanta Progress study, released this month, says casino gaming could bring in extra tax revenue, but there are some likely drawbacks such as social issues that can arise with legalization. The study says state officials should be measured before deciding whether to clear the way for casinos in Georgia.

The report estimates upwards of $400 million of annual state tax revenue from casinos, but questions how much would be new revenue versus money that otherwise would be spent in other areas such as shopping and entertainment. Casinos are also likely to be most frequented by people living near the establishment and not tourists.

“For cities like Atlanta with existing tourism appeal, a casino might augment but is not likely to create a big increase in new tourism appeal,” the report said.

The prospect of making casinos legal in Georgia has been appealing to some state leaders and many state residents. The revenue, officials have said, could help pay HOPE programs that covers in-state college tuition and pre-K, as well as bring in additional jobs.

Georgia also appears to be an alluring market to at least one major gaming resort company. Las Vegas’s MGM Resorts International was reportedly looking at sites around Atlanta in 2016 for a potential $1 billion resort, according to the Atlanta Journal Constitution.

And proposed Georgia legislation mentions as many as six casinos in the state.

In response, Central Atlanta Progress, a downtown business association, and Atlanta Downtown Improvement District conducted the study.

Local governments must create carefully crafted objectives before agreeing on casinos. States such as Pennsylvania and Massachusetts are two examples where state and local agreements best mitigated some of the potential social problems, the report said.

“There are several types of social impacts that need to be considered and planned for including problem gambling, crime, bankruptcy, political corruption, and other quality of life issues,” the study said.

To read the full study click here.

This story was originally published January 13, 2017 at 4:49 PM with the headline "Casinos are no surefire jackpot in Georgia, study says."