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NC Senators agree on internet sweepstakes ban

Posted on June 26th, 2010

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North Carolina statesmen from opposing ends are agree to ban internet sweepstakes statewide. A strong 47 to 1 vote declares an almost perfect vote against this gaming form. A former ban, made in 2006 against video poker machines is set to be amended to give way to the recent proposed band of online sweepstakes. Legislators believe a certain dent on the 2006 ban has been made that allowed online sweepstakes providers to make business without having to cross the law, per se. House Speaker Joe Hackey, a strong supporter of the ban has not released any final statement yet since the bill was assigned to the House.

Democrat Senator Bill Purcell believes the almost solid vote of the senate is clear indication of their stand on the matter. He said to have received massive numbers of emails from people stating instances of online sweepstakes gaming and the harm it does to the lives of locals. One email, which was read before the senate during floor debate was from a man who asked certain people into the said gaming activity, how they can afford to spend money in gambling when they cannot even afford to make a decent living, let along everyday food. The players are hoping that their luck in winning will alleviate their poverty.

The senator expressed how alarming the situation in the streets really is, poverty stricken North Carolina natives wasting money away on betting with hopes that this will solve their problems. Republican Senator Jason Phibbs, noted as a great rival of Purcell also supports the ban. “While sweepstakes gaming may not violate the letter of our video gambling law, I agree it certainly violates the intent . I also agree that sweepstakes gaming, like other forms of gambling, disproportionately impacts the poor, enables addiction, increases crime and is bad for society as a whole.” Said the senator.

Phibbs however has some problems with Senator Purcell’s support on the ban. The senator is saying this vote is seemingly not in accordance to Purcell’s stand on the Education Lottery bill which he voted favorably for in 2005. He insists in saying that after all “ ( Education Lottery) is another form of gambling that disproportionately impacts the poor.” “If he’s concerned about people taking advantage of the poor, why did he vote for the state to do so via the lottery?” Phibbs cited samples of studies made that shows how increase in lottery earnings are proportional to unemployment rate increase. This is according to one study made in 2007 by North Carolina Family Policy Counci and another, John Locke Foundation.

Senator Purcell retaliated, defending his view by saying although both may be forms of gambling, they belong to different kinds of gambling, thus not having the same effect. He further explains that online sweepstakes are far more addicting than lottery. “You don’t keep putting in money after money into a machine like these people do,” Purcell claims. Unlike lottery where you only get to bet only a few times. Even law enforcers are said to have more difficulty controlling the crimes associated with online sweepstakes, which are mostly robbery and theft. On the other hand, supporters of the online sweepstakes industry are asking for legislators to reconsider the ban citing reasons such as massive loss of jobs. Employees like Ryan Swanson of Joe’s Creek Internet Cafe is fearing the loss of his own employment if such ban is implemented, and not only for him but for a lot of people. Unemployed people may end up on the streets, said Swanson. “It’s nice to have a job . It’s hard to find work anywhere and without this job, I’d be starving”.

William Thevaos, President of The Entertainment Group of North Carolina, expressed their protest against the ban. This group hosts online sweepstake operations in the area. Thevaos and his group is raising the argument that revenues earned from online sweepstakes can contribute to the budget deficit currently experienced by the state. He further debates that since the state already has allowed Education lottery, internet sweepstakes should be regarded in the same category. He views the ban as a “flimsy argument”.

The group and its leadership is proposing regularization of internet gaming and all forms of gambling in the state, rather than allowing some forms and banning others. Thevaos mentioned states like Ohio and Illinois who have allowed gaming in such forms with the end result of earning over $1.5 billion. He continues to point out the potential contribution of the revenues that can be carried into the state from online gambling businesses can be most beneficial to the state.