According to PlayUSA, North Carolina lawmakers are considering including commercial casinos and video lottery terminals (VLTs) in HB 259, the 2023 Appropriations Act.
State Rep. Jason Saine, the sponsor of the recently passed sports betting bill, said, “I do believe that VLTs and casinos could be included in the budget. Supporters and lobbyists on those issues are continuing to meet with members.”
Saine noted the Senate also is working on a similar proposal, including using revenue from the gambling expansion to help offset a proposed reduction in income tax.
An analysis by Spectrum Gaming in March indicated three destination resort casinos in North Carolina could generate $1.682 billion in gross gaming revenue. The casino tax rate is not yet known but a 35 percent tax rate could produce $589 million in annual revenue for the state.
Additionally, the report said a maximum of 30,000 video lottery machines could generate $1.89 billion annually. Under a House bill, 32 percent, or $600 million, of that revenue could be directed annually to the general fund. Altogether, according to the report, allowing commercial casinos and VLTs could produce nearly $1.2 billion a year for the state.
North Carolina has three tribal casinos, two in the western part of the state and one 35 miles north of Charlotte. The Spectrum report noted when four casinos open in Virginia, North Carolinians will spend $259 million a year to gamble there. Two already are operating in that state.
Regarding video gaming machines, state Rep. Harry Warren, sponsor of a bill regulating VLTs, said between 60,000 and 100,000 machines already operate in North Carolina bars, restaurants, gas stations, truck stops and warehouses. Warren wants to regulate a maximum of 35,000 VLTs in the state.
He told PlayUSA, “I’m anticipating that the Senate version of a VLT bill will be included in the upcoming conference report which will become our budget. Sports betting advanced on its own, but we’re thinking some other aspects of gaming might just come up in the budget.”
State Senator Brent Jackson, a Senate conference committee chair and author of VLT legislation last year, said, “We’ve been unsuccessful in putting sweepstakes parlors and VLTs out of business. The reason they exist is people want to play them. So no amount of legislation is going to completely eradicate them. The common-sense thing to do is regulate them so we can control it rather than try to eliminate it. I think people are coming to that understanding.”
