RALEIGH — Rep. Earl Jones said he plans to introduce a bill this week to legalize video poker, a form of gambling outlawed amid accusations of political corruption and operators skirting rules.
The Greensboro Democrat said it is “hypocritical” for the state to run a lottery but outlaw another form of gambling that some people enjoy.
“I think it’s very unfortunate that you have some folks who are very paternalistic,” Jones said Monday. “Some people can’t pay $200 or $300 to play golf or $100 to go to a Panthers game. This is their entertainment.”
Video poker machines used to be common in convenience stores throughout the state.
Although players were supposed to be able to win no more than $10 in store merchandise, court records show those rules were often flouted, with players paid in cash. Advocates of the ban argued that those cash payouts made the machines addictive.
At the same time state and county law enforcement were making arrests, the industry’s political efforts attracted scrutiny. Contributions connected to the video poker industry helped bring down former House Speaker Jim Black, now serving time in federal prison on corruption charges.
Since the ban went into effect in 2007, some relatives of video poker machines have stayed in business by using a sweepstakes-based computer system that ties into a remote server. Rulings in a pending Guilford County lawsuit have allowed those games to keep operating.
Meanwhile, a Wake County judge issued a ruling this year that threatens to invalidate the state’s video poker ban entirely. But that order has been stayed while on appeal.
At the General Assembly, legislators have been working on ways to counteract those rulings and seal video poker out of the state permanently.
“It has proved difficult,” Sen. Tony Rand, a Fayetteville Democrat and the Senate majority leader, said Monday.
As for Jones’ idea of legalizing the industry once again, Rand said, “I don’t believe that will make it.”
Rep. Hugh Holliman, a Davidson County Democrat and the majority leader in the House, said he would personally oppose removing the ban.
Any effort to legalize video poker again likely would face opposition from the political left and right. Advocates from both sides say video poker is addictive and preys on those who can least afford to play.
“There was an incredible amount of criminal activity surrounding these machines,” said the Rev. Marc Creech, who leads the Christian Action League in North Carolina. He said at the time the ban was being debated, he met a man who had lost much of his savings “just shoving one $20 bill after another into those machines.”
As Jones described it, his bill would call on the state revenue department to set regulations for the machines. Both manufacturers and operators would have to pay licensing fees to the state. And, he said, his bill would require machine operators to pay 20 percent of their proceeds to the state.
“The estimates are it would generate $25 million to $30 million for the state,” Jones said. As the state budget is strained by increasing demands and falling tax revenue, he said, it would be irresponsible to not look at repealing the ban.
Contact Mark Binker at(919) 832-5549 or mark.binker@news-record.com
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