Board quiet on video lottery for Underground

The Atlanta Journal-Constitution

Sunday, March 29, 2009

Most days, developer Dan O’Leary brings a laptop computer, a projector and his best pitch to civic groups and elected officials. He has a plan he says can bring in hundreds of millions of dollars to keep the state’s HOPE scholarship program in the black, improve the city of Atlanta’s ailing finances and return Underground Atlanta to its glory days as an entertainment mecca in downtown Atlanta.

The plan: Install 5,000 video lottery terminals and build a 29-story hotel in a renovated Underground Atlanta.

WHAT IS A VIDEO LOTTERY TERMINAL?

They look like slot machines but operate like scratch-off tickets that the lottery already sells, such as "Slots of Luck" and "Hold 'em Poker." State law prohibits Las Vegas-style casinos, but the lottery's charter does not prohibit video lottery terminals. The terminals are used at Dover Downs, a Delaware-based casino that wants to operate the machines in Atlanta.

THE STORY SO FAR

Previously: Developer Dan O'Leary, who operates Underground Atlanta as part of a lease agreement with the city of Atlanta, unveiled his plans to the AJC in January. He said the terminals and hotel would generate about $600 million a year in gross receipts and half of that money could sustain Georgia's HOPE scholarship program.

The Latest: O'Leary is meeting with groups to drum up support for his plan.

What's Next: The Georgia Lottery Board meets April 30. O'Leary hopes to make a presentation to the board.


Recent headlines:

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O’Leary and his business partner, John Aderhold, say it can generate $600 million a year in gross profits. The plan’s critics, most of whom are against any form of gambling, worry the terminals will bring more crime and create more gambling addictions.

Amid the debate, the four men and three women who have the power to say yes or no to the plan have been largely silent about the proposal.

The Atlanta Journal-Constitution reached out to all seven members of the Georgia Lottery Board to ask them about the proposal. The consensus: don’t expect any gambling at Underground anytime soon.

Each board member interviewed said there’s still much research and deliberation needed before the deal is done.

In recent years, the state Legislature’s Republican leadership has rejected legislation pushing for casino gambling in Georgia. Some board members like Celeste Osborn aren’t happy with the proposal, suggesting in a statement that O’Leary is trying to make an end-run around the Legislature by presenting an idea that does not need their approval.

All board members are appointed by Gov. Sonny Perdue.

O’Leary said he first tried to get a hearing with the board about two years ago, but he said he’s heard no reply. Some board members explained that they meet only four times a year and haven’t had time yet to discuss the proposal.

Here’s some of what they had to say:

Jimmy Braswell

“I think we’re in the infant stages of doing our due diligence. … There’s just a lot of issues that need to be explained.”

Ann B. Crowder

“The folks who are against this because they’re opposed to gambling, I think they’re very sincere, but where else are you going to get [the money] to go straight to education?”

Marty Kogon

Referred calls to the lottery’s CEO, Margaret DeFrancisco.

Celeste Osborn

“I am concerned with the manner in which the VLT idea has been handled. No major decision like this should even be considered without a rigorous process that is fully transparent to the public. I do not believe this whole scenario rises to the standard the citizens of Georgia expect of a public body.”

John K. Watson

“I don’t think that this proposal at this time has merit. There are lots of unanswered questions that are not the purview of the board. It’s policy that would require a sea change among a lot of elected officials.

“I don’t think an unelected board should be making these decisions without policymakers that are responsible to the general public. I think there is a lot of cart before the horse.”

George “Tony” Campbell

Did not return three telephone calls requesting comment.

Rayna Casey

Declined comment.



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