Legislation that would allow for sports betting in Georgia has advanced further this year than ever before, and it maintains a strong chance of passing before the 2021 session expires in the coming weeks.
It makes sense for the state to legalize sports betting. It’s against current law, but Georgians easily place bets on games online today. Changing the state constitution to allow it, in other words, won’t change existing behavior. But by recognizing it as legal behavior, the state can tax it and create a new revenue stream.
What doesn’t make sense is to exclude horse racing from current legislation that has passed the state Senate by an overwhelming margin and now awaits action in the state House. If we can bet on the Hawks or Falcons, why not horses?
There’s no downside to adding horse racing to this legislation – the industry isn’t asking for state investment for a racetrack – and the upside goes far beyond a new Georgia entertainment destination and additional tax revenues. Let us repeat: Georgia can create a billion-dollar industry with no state support, tax credits, state subsidies or other economic development incentives.
The introduction of horse racing will stimulate Georgia’s equine industry, which has been an important part of our agricultural sector for many years. It currently isn’t growing because there’s no incentive for breeders to raise their racehorses in our state. The track record in other states demonstrates that these facilities lead to new jobs and opportunities in the equine industry as well as unprecedented investment in rural communities – the latter a longtime priority of legislators, Gov. Brian Kemp and the state’s business community.
From the wagers placed at racetracks in Georgia, a portion of proceeds would go toward a robust Georgia Horse Breeders’ Fund. The money paid out will create a new incentive for owners to breed, foal and raise their racehorses here. Today, Georgia owners send their broodmares to other states, meaning we lose out on millions to states with racetracks and breeding funds.
A 2018 study by The Lewis Group found that a single horse racing facility would employ more than 2,225 people, grow state GDP by $640 million and have a $1.2 billion economic impact in its first year of operating, with each metric growing over time. This would generate $210 million in state and local taxes in its first year and $1.1 billion over five years.
Georgia has the perfect climate for a 60-day racing season, and with legal approval of the industry, the state has a strong case for becoming the permanent home of the Breeders’ Cup, the premier championship event of Thoroughbred racing.
Legislators who vote to legalize sports betting would face no additional political risk for adding horse racing to the bill. In fact, horse racing might increase public support. A 2019 poll of Georgia voters showed 66 percent would support permitting pari-mutuel betting on horse racing and even more, 72 percent, would approve of letting voters decide the issue for themselves.
That’s all we’re asking for. Include horse racing in the bill and let voters decide in 2022. A measure that boosts agribusiness, rural areas and tourism while creating a new revenue stream is a safe bet!
Dean Reeves is president and Carl Bouckaert is chairman of the Georgia Horse Racing Association.
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