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North Carolina Lottery Proposal Worries Local Gaming Interests

28 April 2005

NORTH CAROLINA – As reported by the North Carolina News & Observer: "As the talk of a state lottery continues to swell in Raleigh, Shawn Anderson frets about his gambling business in Greensboro.

"Anderson is a distributor of video poker machines, and he runs the Bingo Nuts hall six days a week. If customers get tired of eyeing bingo cards, they can play three video poker machines along the back wall.

"The payouts are small -- no more than $10 in merchandise on a video poker machine or $10 on a bingo game -- so Anderson wonders how many people will show up if the state approves a lottery with much bigger payouts.

"…North Carolina may be behind other states in legalized gambling, but it is home to a casino in the western reaches of the state operated by the Eastern Band of the Cherokee; roughly 10,000 video poker machines scattered across clubs, convenience stores and arcades; and more than 300 bingo operations that can offer as much as $500 in prizes.

"Such private gambling interests are paying attention to the lottery debate. Lobbyists for the Cherokees and the video poker industry have been showing up at meetings in the General Assembly to see how lottery legislation may affect their clients.

"Experts say a lottery is likely to cut into their profits.

"…But private gaming interests in North Carolina are not fighting a state lottery.

"…But at Bingo Nuts, Anderson worries that lawmakers might not wait for the marketplace to sort out winners and losers in the gaming business. They may decide to eliminate one competitor by banning video poker machines…"

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