Senate group takes 1st look at lottery bill

RALEIGH — The Senate committee reviewing the N.C. legislature’s lottery bill met for the first time Wednesday to examine the proposal passed by the House earlier this month.

On the docket were questions about ambiguous language in the bill and the possibility that it could expand video poker’s reach in the state.

Rep. Bill Owens, D-Pasquotank, stressed in his introduction of the bill that a moral opposition to gambling should not stop senators from voting in favor of a lottery and bringing in an estimated $300 million a year — revenue now lost, at least in part, to lotteries in neighboring states.

“Educating kids in other states is worse than gambling,” Owens said.

The bill finally passed the House after longtime Speaker Jim Black, a Mecklenburg County Democrat, agreed to support it. It would give 50 percent of lottery revenue to prizes, 34 percent to education and 16 percent to administrative costs.

On Wednesday, senators’ questions about the bill reflected issues that are likely to become contentious.

Vague language in the bill would put surplus administrative funds toward undefined “public purposes.” Senators might revise the proposal to ensure that the extra money goes to fund education.

Administrative costs for comparable state lotteries run at an average of 5 percent to 6 percent of revenue, lawmakers were told, so another 10 percent of lottery cash potentially could go to education.

In addition, language in the bill that would allow the use of machines to play lottery games concerned several senators because of past attempts to outlaw video poker.

“The Senate has made a concentrated effort to make video poker machines illegal,” said Sen. Minority Leader Phil Berger, R-Rockingham. “Some people refer to it as the crack cocaine of gambling.”

Currently, establishments that allow video poker can have no more than three machines and must undergo state inspections. Efforts to ban the practice outright have been stymied by Black, who receives significant campaign contributions from those in the industry.

But without changes, the bill is unlikely to clear the Senate, said Sen. Doug Berger, D-Franklin.

Senate Majority Leader Tony Rand, a Cumberland County Democrat, agreed.

“It’s very unlikely it will be passed without revisions,” Rand said. “That’s the way the sausage factory works.”

But Doug Berger said the chamber could pass the bill as is and let the lottery commission the bill would set up deal with issues of electronic gambling.

The commission would comprise three members appointed by Gov. Mike Easley, three recommended by Senate President Pro Tem Marc Basnight, D-Dare, and three recommended by Black. It would determine the types of games allowed and prizes awarded, and it could decide to outlaw electronic gambling.

“The lottery commission would have a lot of power,” said Sen. Julia Boseman, D-New Hanover, who sponsored an earlier lottery bill.

Boseman said the bill was likely to pass and would provide critical funds.

“There’s a way to have (a lottery in North Carolina) and outlaw video poker,” she said.

Contact the State & National Editor at stntdesk@unc.edu.