Florida committee stalls casino bill; Georgia and Tennessee push for casinos

us-casino-legislationA flurry of pro-casino activity has erupted in several southern US states, although much of it is expected to fail, at least initially.

In Florida, the state House of Representatives Regulatory Affairs Committee began discussion of HB 1233, Majority Leader Dana Young’s sweeping gambling overhaul proposal. The bill, which would allow construction of two integrated resort casinos, was discussed for four hours on Thursday but committee members declined to put the bill to a vote.

Committee chairman Jose Felix Diaz said the group wouldn’t discuss the bill again for another two weeks, which will leave just two weeks left in the current legislative session. Young claimed not to be bothered, telling the Tampa Bay Times that gaming bills “never come up until the last couple days of session.” (Perhaps that’s why they never pass.)

Meanwhile, a state Senate committee continues to negotiate with the Seminole Tribe over a renewal of its tribal gaming compact, a portion of which expires this year. State economists have projected Florida could lose out on $822m over the next five years if it fails to renew the tribe’s monopoly on blackjack and other house-banked card games. The tribe has another 15 years left on its slots monopoly outside Miami-Dade and Broward counties, where the two proposed integrated resorts would be located.

The Seminoles recently unveiled a new TV ad campaign intended to remind Floridians of the tribe’s contributions to state coffers. The commercials say the tribe has exceeded its $1b guarantee over the past five years.

GEORGIA
Across Florida’s northern border, Georgia legislators have introduced a constitutional amendment to overturn their state’s ban on casino gambling. Given that there’s only one week left on the legislative calendar, the amendment is DOA. But a companion bill would create a study committee to consider the casino proposal while legislators are off on holiday. The end game is to have the amendment question on the November 2016 election ballot.

Getting the amendment on the ballot would require a 2/3 vote in both legislative bodies. Assuming the amendment passes, local referendums would be required to ensure host cities were on board. Georgia Gov. Nathan Deal has publicly expressed his disdain for casinos but a January McLaughlin & Associates opinion poll showed 57% in favor of casinos. The casinos would be expected to collectively provide $250m to the state on an annual basis.

The casino proposal envisions carving up the state into five zones, with a maximum of six casino licenses divvied up between them. Anyone wishing to build in Atlanta would have to invest a minimum of $1b although a second smaller casino would also be permitted in the Atlanta zone. Casinos outside the Atlanta zone would require a minimum $200m investment.

TENNESSEE
Across Georgia’s northern border, Tennessee state Rep. Jason Powell has also proposed amending his state’s constitution to permit casinos. As in Georgia, Powell’s proposal would require 2/3 votes in the legislature and approval of Tennessee voters next November.

Powell’s HJR 87 is short on specifics and the legislator says it would be up to the General Assembly to figure out “the rules and processes for having legal gaming in our state.” Previous casino efforts have failed to get off the ground in Tennessee, but HJR 87 attempts to placate opponents by requiring all casino tax revenue to go to either K-12 education or gambling addiction programs.