The Legal Battle Over Casino Development In Georgia: Key Stakeholders And Arguments

June 3, 2024
4 mins read
Georgia’s voters came one step closer to being allowed to vote on the possible legalization of casino gambling and sports betting earlier this year. At the beginning of February, The Georgia Senate voted 41-12 in favor of opening a referendum on the legalization of sports betting, casino gambling, and online gambling. By April, however, the idea was once again left dead in the water. The resolution needed support from at least two-thirds of the state’s legislature, which it didn’t receive, meaning that the vote failed to make it to ballots in November. The failure is the latest in a series of setbacks for gambling in Georgia, although it did make it one step further by passing the initial Senate vote. 

Georgia’s voters came one step closer to being allowed to vote on the possible legalization of casino gambling and sports betting earlier this year. At the beginning of February, The Georgia Senate voted 41-12 in favor of opening a referendum on the legalization of sports betting, casino gambling, and online gambling. By April, however, the idea was once again left dead in the water. The resolution needed support from at least two-thirds of the state’s legislature, which it didn’t receive, meaning that the vote failed to make it to ballots in November. The failure is the latest in a series of setbacks for gambling in Georgia, although it did make it one step further by passing the initial Senate vote. 

Gambling legalization would have seen the introduction of casinos in cities like Atlanta and Columbus. It would have also heralded the introduction of online gambling with residents being allowed to use services like pokersites.ltd to play and wager on poker games, along with many other casino-style games online. 

Under current laws, anybody found guilty of gambling can be charged with a misdemeanor and the offense can carry a fine of up to $1,000 or even a year in jail. Gambling has been prohibited since the beginning of the 20th Century and includes any bet on any type of game or contest.

There are no legally recognized tribes in Georgia, which also means there are no tribal casinos or betting premises where people can partake. As well as traveling out of the state to gamble, there is a casino cruise ship that picks up locals before sailing out of the state’s jurisdiction so passengers can legally bet. Because of the tough local rules, many bettors opt to play on international offshore betting sites. 

Exceptions to the existing rules are made for raffles where the proceeds of the raffle go to charity, and for the state lottery. Funds from the state lottery help fund education. It includes scratchers as well as the main lottery, and tickets can be bought in some shops as well as online. In the year ending June 2023, the lottery raised just over $1.5 billion for education from revenue of $6.1 billion with 63% of the funds being paid out in prize money.

While discussing the proposed new legislation, The State Senate declared that companies operating within the state would be taxed on gambling revenue. They proposed that the question of whether gambling should be legalized would be given to the residents of Georgia. 

Senator Carden Summers went on to say that 50% of the revenue generated from the tax would be spent on improvements to the transportation system. 20% would be assigned to improving childcare and pre-kindergarten programs, and the remaining revenue would be split among addiction programs, healthcare, and education.

Currently, Georgia residents must travel out of state to legally participate in gambling activities or wager online via international offshore sites. Proponents of gambling legalization point to the fact that 80,000 Georgians do exactly that. They travel to other states to visit casinos and gambling premises, taking the revenue with them.

In Tennessee, casinos are prohibited but horse racing and pari-mutuel wagering are permitted.

In North Carolina, three Indian casinos are legally allowed to operate, along with the North Carolina Education Lottery and charitable raffles.

South Carolina permits a state lottery and has no casinos in its cities. It does not permit online casinos either.

Florida permits betting on horse racing, and gambling at official tribal casinos.

Alabama has strict anti-gambling laws that permit gambling on greyhound races.

Accessibility to casinos in some of these neighboring states means residents are still gambling, but Georgia isn’t benefiting from it. Under Senate Resolution 538, the money would at least go back into the state’s coffers.

Local businesses and many citizens support the idea of a referendum. One poll suggests that a massive 85% of people believe that voters should be allowed to decide the debate, with many pointing to the additional revenue that casinos can bring. Rather than having Georgians heading out of state, casinos in cities like Columbus will attract gamblers from out of state, bringing a boost to local businesses like hotels, retail outlets, and restaurants.

However, not all groups support the move. The Georgia Baptist Convention, which has 1.4 million members, has spoken out against the idea of legalizing gambling. Mike Griffin, a Georgia Baptist Mission Board representative, asked voters to encourage representatives to vote against the decision. Senator Marty Harbin echoed these thoughts, stating that voters do not have the same knowledge as members of the Senate, and pointed to societal problems and other problems legalization could possibly bring.

Despite objections, however, the Senate greenlit a referendum to pass Resolution 538 which would permit “sports betting and limited casino gambling”. Before a ballot could happen, the proposal needed legislature backing, which it failed to receive.

If the amendment had been passed, it should be written into law by July 2025. This isn’t the first time such proposals have failed, and it is likely that there will be another push in the coming years. Resolution 538 would have allowed for five casino sites to be built in the state, presumably with those being assigned to the major cities and hubs, and it would have permitted gamblers to use real money online casino sites to place wagers and bet on casino games. 

The question of gambling legalization has long been debated in Georgia. But, this represents the first time proposals made it to the legislature stage, having received backing from the Republican Senate and some Democratic Senators. Public opinion certainly seems to be behind the legislation. 

Businesses that would benefit from legalization are also supporting the move, which is backed by the promise of greater funding for public services like improved travel infrastructure and more help for education. There are still some voices that oppose the move, and the legislature discussions suggested that they believed the revenue generated did not outweigh the political difficulty of the moves.

Different states have different gambling laws. Hawaii and Utah prohibit gambling altogether, while some other states prohibit gambling but allow charitable raffles and state-run lotteries. Other states allow tribal casinos, while some permit online gambling. Louisiana and Nevada are the only states that allow casino gambling across the whole state. Some states, like Atlantic City and New Jersey, allow casino gambling but only in restricted geographic areas. 

If the proposed changes to the law had come into full effect, Georgia would have gone from having one of the strictest gambling laws to having one of the most open, potentially attracting a lot of tourists from out of state while also benefiting from the tax revenues it raised.