Update: Appeals court upholds video poker ban : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

RALEIGH (AP) — The state appeals court today upheld a statewide ban on video poker machines except those operated by the Eastern Band of Cherokee Indians in their Smoky Mountains casino.

A three-judge court panel ruled unanimously that a 2006 state law giving the tribe exclusive gaming rights within North Carolina does not violate a federal Indian gaming law as an amusement machine vendor had argued.

The tribe operates Harrah's Cherokee Casino, which attracts more than 3.5 million visitors a year and generates revenues of more than $250 million annually. Tribal members in June received checks for $3,892 in the first of this year's twice-a-year payments.

The ruling overturned a February decision by Wake County Superior Court Judge Howard Manning that sided with the gaming company and could have again legalized video poker machines in all 100 counties.

But the appeals court said the federal Indian Gaming Regulatory Act allows states to grant tribes preferential gaming rights in hopes the revenues would expand tribal self-government, economic development, and political stability.

Invalidating the state video poker ban would mean "the tribe would no longer have preferential gaming rights, but instead would be in competition with other gaming enterprises," Judge Robert C. Hunter wrote for himself and Judges Martha Geer and Linda Stephens.

"This is great news. We worked for so long to try to rid our state of this awful industry," state Senate leader Marc Basnight, D-Dare, said in a statement.

Amusement machine owners who once installed video poker machines in convenience stores and bars saw the case as one prong of their attempts to restore the business. Their supporters proposed state legislation this year that would give North Carolina a 20 percent cut in video poker profits in exchange for regulation backers said would clean up the industry.

"We are obviously disappointed in the Court of Appeals ruling but knew there was a good chance the state law would be upheld," said William Thevaous, president of the Entertainment Group of North Carolina, a trade group for amusement machine owners.

"That's why we have pursued legislative action and will continue to press for legislation that will bring accountability and transparency to the video gaming industry in North Carolina through regulation and taxation," he said in a statement.

The General Assembly acted to outlaw video poker machines in reaction to real and suspected corruption linked to the gambling games. County sheriffs also complained of struggling for years to keep track of legal machines limited to minimal payouts and complaints of large illegal cash jackpots.

Former Buncombe County Sheriff Bobby Medford was sentenced to 15 years in prison after being convicted last year of taking up to $300,000 in bribes from illegal video gambling operators while sheriff.

Campaign donations from the video poker industry to its greatest legislative champion, then-House Speaker Jim Black, were investigated extensively by state election officials. Black, D-Mecklenburg, was sentenced to federal prison after pleading guilty to corruption unrelated to video poker.

Hyatt

December 22, 2009 - 11:09 am EST

How about allowing "real" gaming for the Cherokees? Live dice, real cards, a poker room......

jmoffat

December 22, 2009 - 11:31 am EST

Doing that would break up the monopoly the state has on gaming, i.e. the North Carolina Education Lottery

rfulton

December 22, 2009 - 12:21 pm EST

What is the difference in video poker machines and internet caffes. They are using internet connections access video poker over the net in different states. Slots, poker, keno and lots more. You pay to get a login and post monies on your account then you play. Cafes pay out what you win.

Unaffiliated

December 22, 2009 - 12:38 pm EST

rfulton: You are absolutely correct about the internet cafes. Just wondering how many we have in Guilford County. They open up overnight & appear to be busy. I've been told you can do the same on your computer @ home; so why go?

Panacea

December 22, 2009 - 1:48 pm EST

Because it is illegal. All the internet gambling sites are overseas. It is illegal for US Citizens to play there, but many people do. If you game at an internet cafe, you can avoid being identified by your IP address.

Congress is considering a law making it illegal to process credit card transactions to these sites, but it hasn't passed yet.

December 22, 2009 - 4:13 pm EST

Panacea: Appreciate the information. Where are our elected officials?

zrazor

December 22, 2009 - 8:01 pm EST

I don't understand how these internet cafes are legal. These video poker games can be manipulated by owners and should also be illegal.

However, there is misinformation regarding internet gambling and its legal status. Internet gambling is not illegal - unless you reside in Illinois, Indiana, Louisiana, South Dakota or Washington . The law that Panacea is refering to that would apply to NC residents is known as the "Unlawful Internet Gambling Enforcement Act" or the UIGEA for short which prohibits the transfer of funds from a financial institution to an illegal Internet gambling site, specifically excluding fantasy sports, online lotteries, and horse/harness racing. The law was passed in 2006 and enforcement of the law was to start on December 1, 2009, however this has been delayed another 6 months. The law was created when the bill was tacked onto must-pass legislation know as the SAFE Port Act of 2006 at virually the last minute.

One of the main problems with the UIGEA is that "illegal gambling" is not defined. The only law that defines any illegal gambling is from the wire act law of 1961 which specifically makes sports book betting illegal. Onling poker is not an illegal activity. That is like there being a law that makes it illegal for you to say bad words in public. What defines a bad word? Some people are offended by the word "damn", so should you be arrested for saying that word if that law were to exist? If that sort of law existed, then the types of bad words should be defined. Obviously this type of law does not exist, but you should get the point.

There is an organization known as the Professional Pokers Alliance (theppa.org). The PPA’s mission is to establish favorable laws that provide poker players with a secure, safe and regulated place to play. Through education and awareness the PPA will keep this game of skill, one of America’s oldest recreational activities, free from egregious government intervention and misguided laws.

Online poker is legal in all but a few states. The UIGEA does nothing to change the legality of poker. It only aims at the banking side of things. The government specifically excluded fantasy sports, online lotteries, and horse/harness racing from the ban. Fantasy sports, and racing are apparently considered "skill" instead of gambling, and since some governments run online lotteries, they aren't going to make that illegal. The PPA aims to have online poker officially categorized as a game of skill, thus exempt from the UIGEA. Further, the PPA wants poker to be regulated by the government to give protections to the players and also support having poker properly taxed.

Here is one for all of you.. I am willing to bet that a lot of you reading this and shaking your head about illegal gambling might participate in March Madness Basketball pools. These pools, even office pools, are also illegal!

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