A North Carolina House committee has revived a stalled bill that would legalize, regulate and tax thousands of gray-area gambling machines currently operating in “sweepstakes parlors” and similar locations around the state.
Similar to a bill that died in committee in 2021, the measure would direct a significant source of revenues toward higher education, as well as eliminating what many see as shady activity involving the sweepstakes parlors.
Republican Rep. Harry Warren of Rowan County, the bill sponsor, has noted that despite efforts by law enforcement and lawmakers, video gambling and sweepstakes machines continue to spread as games are tweaked to get around state law.
In an interview with the Associated Press, Warren said he’s heard estimates that between 60,000 and 100,000 illegal machines are operating in North Carolina.
“The real reason that these things flourish is because people play them,” Warren told the House Commerce Committee, according to the AP. “By restricting, regulating and reducing the supply, we can eliminate sweepstakes parlors and the seedy aspects of unregulated gambling, replacing it with a limited supply of gaming entertainment that fulfills the public demand in a safer, controlled environment and safer conditions.”
No vote was taken on the measure after debate last week, and it’s unclear when the committee will return to it.
Warren’s bill would direct the lottery commission to oversee the distribution of lawful machines in places with alcohol beverage licenses, such as bars, restaurants and convenience stores. Machine manufacturers and owners would be licensed, and retailers would contract with owners to set up machines. Patrons would be able to play games of chance and redeem winnings for cash.
