A handful of states within the south contemplated casino legalization in 2016, and while these acts were ultimately unsuccessful, Georgia and Alabama appear the 2 in all probability jurisdictions to pass some type of expanded gaming within the near future, consistent with a panel presentation at Southern Gaming Summit, which recently happened on the Mississippi Coast Coliseum & Convention Center in Biloxi, Miss.

This past year, Georgia introduced a casino legalization bill to make up for the cheap shortfall within the state’s funding for pre-k and secondary education. The overall iteration of the measure called for the establishment of 4 casinos within the state, including two within the Atlanta Metro area, which might be taxed at 20 percent with all of the proceeds going to education funding. The legislation was reportedly supported by MGM Resorts International, Boyd Gaming Corporation, Penn National Gaming and others who sank an estimated $2.5 million in a lobbying effort to get the bill passed. 

However, the measure didn't get support from Georgia Gov. Nathan Deal, who's generally against any gaming expansion within the state but wouldn't stand within the way of a casino bill that taxed operators 25-35 percent for state education funds. For this and other reasons, the bill didn't make it out of committee within the Georgia Assembly.

“There isn't any doubt in my mind that we are going to see [casino enabling legislation] again over the following couple of years,” said Bruce Bowers, senior public policy advisor for the firm of Baker, Donelson, Bearman, Caldwell & Berkowitz PC. “The Georgia Assembly will revisit it for various reasons including the economy within the state, the rising cost of secondary and post-secondary education and the dimensions of Georgia because it pertains to other markets.”

Meanwhile, the Alabama legislature was seriously considering legislation that may re-establish casino-style electronic bingo gaming machines on the state’s four racetracks, a lucrative job and tax revenue generator that was outlawed by the state in 2010 after six years of successful operation. The measure had strong support until it became apparent it gave an enormous business advantage to the only owner of the state’s two largest racetracks.

“It was badly-written legislation,” said William G. Somerville, shareholder in Baker, Donelson, Bearman, Caldwell & Berkowitz PC. “In my opinion, it didn't pass as it would have given one person a virtual monopoly on commercial casino gaming in Alabama.” 

Somerville believes the state legislature will continue to explore electronic gaming machines at racetracks, given the state’s history with the business, polls that show 60-80 percent of voters in favor of casino or lottery wagering and a contemporary state study that estimated a casino and lottery bill could generate up to $400 million a year for the cash-strapped state government. However, any such bill is unlikely over the following year, because the state works its way through a corruption and ethics scandal that has ensnared Gov. Robert Bentley and other high-ranking state officials.  

“Once the scandal is resolved, I FEEL if a fair bill is written—one that doesn't give someone a virtual monopoly on casino gaming within the state—it may be hard for legislators to oppose it, given the recognition of gaming in Alabama and the state’s ongoing need for funding,” Somerville said.

Read More... [Source: Gaming Industry News]