When Gov. Beverly Perdue offers her proposed budget later this month, it could include provisions regulating and taxing the video gambling industry, according to a spokeswoman for the governor. The state has been trying for five years to stamp out video poker and its kin, such as the video sweepstakes machines. But various court rulings kept many sweepstakes machines in business.
With the industry still operating and the state facing a $3.7 billion budget deficit, Perdue is giving serious consideration to some form or legalization. “I think I can safely say she is considering the fact that this industry … will constantly seek the loopholes in any law passed to shut them down,” said Perdue spokeswoman Chrissy Pearson. She added that the decision was not “a done deal” but that Perdue has been consistent on the topic during internal discussions about the budget. Perdue called the current state of the industry “offensive” in December. She and other critics say the businesses operate in a legal gray area and target those who can least afford them. Operators say they are merely small businesses who provide employment and an inexpensive form of entertainment. “The next question is how do we regulate it fairly, and is there revenue to be gained in doing so as an extra perk?” Pearson said.
Revenue from video poker and its cousins has been a subject of debate for years. Former Rep. Earl Jones pushed a bill during the last legislative session that he said would reap no less than $500 million for the state by regulating such gaming. It’s unclear what Perdue thinks the state could earn from sanctioning video gambling, and Pearson said she hasn’t begun to sort through questions such as whether the state lottery or some other agency should manage the games.
Republican legislative leaders had mixed reactions to the possibility of regulating and taxing video gaming. “To be intellectually honest, when we say everything is on the table dealing with the budget crisis, we’ve got to be willing to look at things we’re not positively disposed to in our gut right out of the gate,” said House Speaker Thom Tillis, R-Mecklenburg. House Majority Leader Paul Stam, R-Wake, was more hostile to the prospect. “She doesn’t have any thought of actually getting it legalized,” said Stam. “It’s a way to have a place holder, so that she will not have to cut a half-billion-dollars.” Stam said he opposed any efforts to add any form of video gambling to the state’s portfolio. Senate leader Phil Berger, R-Rockingham, said he would rather allow the Court of Appeals to look at pending cases, suggesting that the state should look at legalization only if the higher court allows the games to continue.
(Mark Binker, THE NEWS & RECORD, 2/02/11).
