Atlanta approves plan for VLT casino

[Brianzz]

Oh boy.. another reason not to go to Atlanta.......


From the AJC.com website:

The Atlanta City Council voted Monday to take a gamble in support of a plan to put video lottery terminals in Underground Atlanta, a venture that proponents say will initially bring about $350 million a year to the Atlanta region.

The council voted 10-0 to endorse the plans, the most prominent group so far to weigh in on the proposal. Mayor Shirley Franklin has already written developers of her own support.

“I think we’re in a unique position to see this work out,� said Councilman H. Lamar Willis, referring in part to the city’s budget challenges. “Obviously, the Baptists [who hold conventions in Atlanta] may not come back, but hopefully many of the conventions that go to Las Vegas or other places for the entertainment may come here for that.�

The Georgia Lottery Board, which has the ultimate say, has taken no official position. A board spokeswoman did not return a telephone call for comment late Monday.

State law prohibits Las Vegas-style casinos with such card games as poker. But the lottery’s charter does not expressly prohibit video lottery terminals. The terminals look like slot machines, but operate like scratch-off tickets that the lottery already sells, such as “Slots of luck� and “Hold ‘em poker.�

For years, most city leaders have pushed for regulated casino gambling, noting neighboring states are raking in millions of dollars because they allow casinos. But state legislators have been reluctant to support gambling, fearing increases in crime, personal bankruptcies and divorce.

Because the video lottery terminals can be approved without the Georgia Legislature’s approval, backers believe it is their best chance to get regulated gaming in the city.

Underground Atlanta, a two-level downtown shopping mall with kiosks, restaurants and a food court, is owned by the city and leased to a company run by Dan O’Leary. City officials, who spend more than $7 million a year in taxpayer funds on bond payments for Underground, have been eager to generate more revenue from the place.

O’Leary told council members last month that the city could collect $3 million a year in hospitality taxes from hotel and motel guests, along with increased sales taxes and an undetermined cut of the gaming profits.

“I’m definitely encouraged by the fact that the city of Atlanta supports this idea,� O’Leary said in an interview Monday. “This project will not only help the city, but the region and the state as well.�

The Underground Atlanta leaseholders’ plan, released in January, calls for a $450 million “video lottery� casino, upscale restaurants and a 29-story hotel. Half of the annual proceeds would go to the state’s HOPE scholarship program.

Some business owners and merchants near Underground questioned Monday whether the casino would bring more customers to surrounding businesses, arguing most gamblers would likely stay at Underground.

“There’s no blackjack, no dice. It’s not gambling if you do it like that,� said Mike Gagel, who manages Sensational Subs and has heard many money-making ideas for Underground over the years. “I don’t like those odds.�

As O’Leary waits on a decision from the lottery board, he hopes to make more presentations to convince skeptics, business groups and community leaders.