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North Charleston, SC Approves Casino Boats

Posted on October 31st, 2010

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The debate about the operation of casino boats in North Charleston, South Carolina was apparently more dramatic compared to the actual vote. This week, North Charleston made casino boats legal in the city without the fanfare connected to the deliberations that happened during the weeks leading to the vote. Should the timetable be followed, the casino boats should be coasting along the seas within 90 days. Little fanfare surrounded the City Council when on Thursday night, it passed the final reading of the legislation allowing boats to coast from the former Navy Base and the Shipyard complex vicinity. No less than eight companies have already expressed interest in running voyages from the area. The city’s Mayor, Keith Summey said though that only about two may actually be permitted to operate.

Moreover, the new businesses that the floating casinos would generate would have to negotiate first with several owners of the private properties which already operate in the former base area. These negotiations will be regarding sites to dock and parking set ups. As of the moment, the city is watching which companies are really serious in their contention as they will surely be the ones to apply for local business licenses. The mayor said he does not have information as to who will decide when the casino trips will begin. He admits that there are already some hotels in the area that have started discussing the possibility of offering package trips to visitors. These package tours are said to include transportation, room and boats already. Summey said, “To us, it’s just another choice that people have for entertainment. People should have choices.” The mayor has also dismissed the concern that some residents who are critical of the boats have opposed the move. The residents expressed concern that the city may not be able to take on fully the responsibility of battling cases of gambling addiction that may be caused by the operation of these casinos.

The mayor compared the gambling problem to holding the city responsible for residents getting lung cancer just because they bought cigarettes in the city, or getting liver disease for buying alcohol there. He added that the gambling also won’t be technically happening within the boundaries of the city. He explained that the gambling will become legal once the boats have already left the territorial waters of the state. The package that was passed last Thursday approved 4 points. The first was a boat tie-up zone in the Cooper River, in an area south of Riverfront Park known as Shipyard Creek. The package also changed the business license category of the city to include gambling boat coverage. The third point was the repeal of an ordinance approved in 1999 that prohibited gambling devices in the city. Lastly, the package established a surcharge for the gambling cruises. Two methods of gambling boat surcharges were approved for the city to generate. First is for the owners of the gambling boats to pay a charge equal to 10 percent of the face amount of every sold ticket, plus an added 5 percent on gross proceeds of each boat. The other method is to allow the boats to operate and pay the surcharge at a flat rate of $7 for every passenger.

City officials have already estimated that the trips could generate revenue amounting to a minimum of $700,000 every year, which should be funneled to North Charleston’s budget accounts. Councilman Ed Astle, a casino boat supporter, said, “It’s another revenue source for the city. I don’t think it’s going to be the big numbers that the mayor keeps saying and other people, but it’s a source of revenue.” Meanwhile, gambling boat opponent Councilman Bobby Jameson claimed that although the boats will not really destroy the entire city, they will have a bad effect on a number of families with members that have no control over their gambling habits and lose money they can’t afford to. He is afraid that these may lead to other problems like divorce. He added, “75 percent of the people who use casino boats are local people who live within 50 miles,” he said. “So those are the people it would be hurting.” As of the moment, there is another area in South Carolina where casino boats are already operating: Little River, a town north of Myrtle Beach.

The debates on the casino boats were a bit heated as Jameson had asked researcher John Thomas Junior to present his findings of the study he commissioned. Thomas Jr. said, “What I found was some very definite possibilities for negative economic impact due to bringing commercialized gambling into the jurisdiction.” Thomas Jr.’s presentation only lasted three minutes as council members stopped it, while questioning the scope and data of the presentation.