Controlling video sweepstakes gaming in North Carolina has been more difficult than at first imagined and few sheriffs’ are making much of an effort to halt the games. The language of the legislation banning video sweepstakes games was so specific that operators were able to change software to escape the ban and continue in business, with only a day or two of interruption. Most all agree the effort has had little effect. So what’s plan B?

With the state strapped for cash and unable to permanently halt video sweepstakes count on legislation in 2011 to legalize video poker. Plans are advancing that would assign the control and management to our state’s lottery commission.

Here’s what is likely to happen. Each video poker machine will require a license from the city and/or county in which it is located, with revenues for the licensure going to that local government. This will be popular with local governments needing new revenues. All video poker machines would be tied electronically back to the state. Every morning a “sweep” would be conducted of each machine, determining how much revenue was obtained from the machine during the previous 24 hours. Both city and county governments would receive 5 percent of the revenues, with the state getting a 20 percent cut on the taxes. 30 percent taxation is steep but still a lucrative venture.

Can the measure pass the legislature? The Christian conservatives will initially oppose any legislation, we are told, but are likely to be won over by the argument that it is the only way to control video gaming.

Estimates are that the state would receive $350 million the first year, with subsequent years’ revenues in the $500-$700 million range.

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Comments

• 12/17/2010 2:17 AM Richard Frye wrote:
  The video poker industry in NC is estimated accurately at 2.5 Billion per year. That would be 500 million for NC and 125 million each between the counties and cities. You can let a major company do it and send 1.75 billion per year to another country or state or you can leave it in NC with the people already operating with State oversite and keep that 1.75 Billion here to be spent and taxed in NC. The additional revenue to NC by keeping it in state is another 35%. Thats another 650 million in various taxes to NC. What is so tough about looking at this to benefit NC and its citizens more than some outside corporate interests. The current machines on the street can easily be linked to a computer system that gives the State entity complete oversight and control. Each operator can be collected from by ACH from their operating accounts on a weekly basis. The state system can also turn those games off permanently if the money has not been collected on time. Responsible people in the industry have been trying to get this done for 3 years but outside interests claim they can do a better job or provide the State with more income. The real truth is that the system must be profitable for everyone involved if it is going to successfully survive. The locations, the operators and the State entities must all receive a fair cut. An outside of NC corporation will rape the location owners and rape the State of much needed income and the system will fail. Why don't we do this right the first time. While you are at it, why not privatize the ABC Stores that should make a fortune for private enterprise and a ton of taxes for NC. How can the State of NC be losing money on such a lucrative business. Don't let this same boondoggle happen to Video poker through a state run system.
  Privatize Video poker with NC citizens and let the State have oversight and control. Thats the most efficient way to make this happen. The Legislature cannot meet once a year and write laws that will outrun research and development in the electronics industry. Look at the current situation. The Game industry is back on the street in full force some 15 days after the latest law has taken effect. I might add that they are legal in every way by the current law.
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• 2/22/2011 11:09 AM shirley wrote:
  best thing is keep ban vido poker owners fix machines so you caint win and it breaks up homes because people spend all pay checks on gambleing kids cost state more in long run if ban stays it will help famileys to be able to pay their bills buy food
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