Gaming ban made sense in past, makes sense today

Gaming ban made sense in past, makes sense today

You can bet on some good news today.

A new state law that bans Internet sweepstakes games, the latest wrinkle in video gambling, goes into effect today after a Wake County judge dismissed a lawsuit by an amusement company trying to beat back the legislation passed by the N.C. General Assembly.

There's plenty of gambling in North Carolina. If some people want to throw their money away, hoping to beat often astronomical odds in a game of chance, there are perfectly legal opportunities galore, such as through the state lottery. In that case, proceeds from gambling go directly to the educational needs of Tar Heel schoolchildren and college students.

But as we've said before, the amounts of money that flow from unregulated gambling don't go to any worthwhile causes and too often attract criminal activity and corruption.

Former Buncombe County Sheriff Bobby Medford sits in a federal prison today, serving a 15-year sentence for shaking down video game operators for protection money. Questionable contributions from the video poker industry are what first brought a spotlight on former House Speaker Jim Black, who was just released from federal prison after serving time on corruption charges.

Industry officials argue that Internet sweepstakes games are a different animal from video poker. Customers buy Internet or phone time or offer services first with predetermined odds before playing games on a computer that reveals potential prizes on a monitor. You can largely bet the odds are stacked against winning.

The temptation for legislators facing a $3.5 billion shortfall in the state's budget is to legalize some form of video gaming operations once again, hoping for a cheap source of revenue. Some local governments have already placed taxes on local operations.

But government-sanctioned gambling has been called the “poor man's tax” with good reason. Counties with the highest poverty and unemployment rates have been shown to have the highest lottery proceeds as well. Legalizing Internet sweepstakes games only sticks the industry's hand deeper into the pockets of the people who can least afford it as we make our way out of the Great Recession.

Some officials understand the problem. “The legislature spoke loudly and clear that North Carolina does not tolerate Internet sweepstakes casinos,” said Sen. Josh Stein, D-Wake, who shepherded the ban through the Senate. “What these casinos offer is a form of video poker.”

It would be nice if North Carolina has decided this problem once and for all, but don't bet on it. The video gaming industry is likely to appeal Wake County Superior Court Judge Paul Ridgeway's decision, looking for yet another loophole.

But we agree with Mecklenburg Sheriff Chip Bailey's assessment of that risk: “Video poker in North Carolina is run by organized crime, period. It has been and will be again if they let it back in.”

But today, the law should be clear enough. It's time for the video game operators to unplug their machines and quit playing North Carolinians for suckers.