Video Poker Payoff

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Gambling Industry Seeks to Buy Off Video Poker Ban Bill

Special Report - May 3, 2004
North Carolina’s video poker industry could be trying to buy its way out of a bill that would eliminate video gambling machines from the state. According to a May 1 story in the Raleigh News & Observer, the industry has proposed an alternative to a bill passed by the State Senate in 2003 that would enact an all out ban on video gambling machines in North Carolina, except on the Cherokee Indian reservation. The alternative—have the video gambling industry pay the local Sheriff $1,000 for every machine located in the county, and then add additional fees to help the state Alcohol Law Enforcement Division beef up the “regulation” of what many law enforcement officials have referred to as unenforceable video poker laws. The industry estimates this would amount to nearly $14 million statewide. Although legislation was passed by the General Assembly in 2000 that enacted restrictions and reporting requirements on video gambling machines, widespread abuse is reported. According to the article, the industry claims that there are about 12,000 licensed machines in the state. But, to be legal after the 2000 law was passed, each machine had to be registered with the Sheriff of the county in which the machine was located, and only 10,094 machines were registered. In addition, the 2000 law required that the owners of legal machines report specific information regarding each machine to the N.C. Department of Revenue on a quarterly basis. At the time of the first report on March 31, 2001, information on only 8,963 machines had been reported. Hundreds of machines also have been seized by law enforcement and taken out of circulation since that time due to illegal use. According to a representative of the Sheriffs’ Association, “the North Carolina Sheriffs’ Association stands firmly behind the Senate-passed version of S6—BAN VIDEO POKER/ALL BUT RESERVATION and opposes the industry proposal. Recently, the Sheriffs' Association confirmed that enactment into law of a total ban on video poker machines is a top legislative priority during this legislative Session.”

The North Carolina Family Policy Council also supports a ban on video poker and will urge members of the State House to reject the industry scheme. NCFPC president Bill Brooks responded, “In addition to greatly overestimating the number of legal machines in the state, the industry’s proposal to create a revenue stream from video poker machines directly to the local Sheriff’s office would create, at the very least, the appearance of a conflict of interest. It would be unethical to place the Sheriffs in such a position, as it could cause local constituents to question their Sheriff’s commitment to enforcing state gambling laws.”