In North Carolina, House Bill 954, sponsored by state Rep. Harry Warren, passed the House Commerce Committee and moved to the House Finance Committee.
Designed to legalize unregulated video gambling terminals in the state, the bill would authorize the North Carolina Lottery to license the so-called sweepstakes machines, allowing bars, restaurants and convenience stores that sell beer and wine to install up to 10 machines each.
Warren said, “This bill is not just an off-the-cuff ‘Let’s go and make them all legal.’ That’s exactly the opposite of what we’re trying to do. What we’re trying to do in this legislation is to get rid of the unsavory characters that are out there who are operating now and would not meet the qualifications.”
The bill spells out that a minimum of 32 percent of revenue would go to the state; a maximum of 8 percent would go to the North Carolina Education Lottery for monitoring and enforcement; 35 percent would go to operators who own or lease machines; and 25 percent would go to retailers. The bill also directs $2 million a year to the state’s five public historically Black colleges and establish a new forgivable loan program would be established for community college students.
Licensing fees would be $50,000 for manufacturers; $24,000 a year plus $150 per machine for operators; and $1,000 per location plus $150 per terminal for retailers.
All machines would have to be connected to a central monitoring system which could not be located within 1,000 feet of a school or a church. Gamblers would have to be at least 21 years old. Winners would receive vouchers they could exchange for cash or for additional plays. Odds would have to be posted. Also, state lottery officials would determine limits on how much people could wager at a time.
The bill’s co-sponsor, state Rep. Tim Moffitt, said he’s optimistic about passing the bill in the House but he’s less sure about its chances in the Senate. “The reality that’s before us is do we regulate video gambling or do we not regulate. It’s apparent that we can’t stop it.”
The North Carolina Sheriffs’ Association did not appreciate Warren’s comment that the video lottery bill should cut sweepstakes machines in the state by 65 percent to 70 percent. Association lobbyist Eddie Caldwell responded, “This bill doesn’t eliminate the machines that are already there. It only creates a large number of additional machines.” He added, “These are not high-roller folks that can afford to go to Vegas. These are folks who are betting their rent money and their grocery money.”
The North Carolina Family Policy Council also opposed the bill. Executive Director John Rustin said the measure would “do incredible harm” to people, marriages and families. “There is nothing in this bill that would limit, that would restrict or that would eliminate video sweepstakes,” Rustin said. He called the machines the “crack cocaine of gambling” because of their addictive nature.
