The North Carolina House Finance Committee recently passed House Bill 511, sponsored by state Rep. Jamie Boles, that would allow nonprofit “game nights” at restaurants and bars that serve alcohol as long as they’re not located near the Cherokee casino. The measure now goes to the House floor.
Boles said many nonprofits host game nights because the law is confusing. “Presently, you all probably go to game nights at nonprofits, and that’s because your DA elects not to prosecute. Our DA prosecutes but it’s not balanced in the state of North Carolina,” he said. Current state law prohibits operating games of chance where betting occurs, with the exception of the state lottery, the Cherokee casino and certain bingo events.
If Boles’ measure bill becomes law, groups hosting game nights would need a permit and also would be limited to a certain number of events they can hold per year. The events could include raffles, casino-style games and other games that award non-cash prizes.
State Rep. Deb Butler said, “I have attended these evenings and I found them to be great fun. Money was raised for a great cause.”
However, social conservatives expressed opposition to the proposal. Reverend Mark Creech of the Christian Action League said the measure would create “a de facto form of legalized casinos across the state” and allow “gambling on training wheels.” He added, “Gambling in any form always causes social disruption and evil. Gambling is morally flawed because the practice is predicated on the losses of others.”
John Rustin of the North Carolina Family Policy Council said the legislation would “create unfair competition between charitable organizations” since nonprofits that focus on problem gambling would be unlikely to host the fundraisers. Rustin said the events have high overhead costs so “the benefit to nonprofits is alarmingly small. Nonprofits typically net less than 10 percent of gross revenues.”
Frank Gray, lobbyist for the North Carolina Restaurant and Lodging Association, downplayed concerns that game nights lead to gambling problems. “If you attend one of these events, you’re making a voluntary contribution to a nonprofit you support. You’re not risking the rent check,” he said. The North Carolina Center for Nonprofits also supports the legislation.
