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Issue Date: Vol. 52, No. 7, July 2012, Posted On: 7/3/2012

N. Carolina Lawmakers Fail To Tax Sweeps Viddies

Marcus Webb
Thom Tillis, amusement business, gaming business, Gov. Bev Perdue, electronic sweepstakes, sweepstakes videogames, NC sweepstakes tax, gaming regulation, sweepstakes videogame ban

RALEIGH, NC -- The General Assembly here will conclude its current session the first week of July without having passed a bill to tax and regulate sweepstakes videogames, said House Speaker Thom Tillis (R-Mecklenburg Co.).

A heavy tax and extensive regulation scheme on the sector was recently proposed by Gov. Bev Perdue. | SEE STORY

One bill, offered by Rep. Bill Owens (D-Pasquotank Co.), would have taxed each sweepstakes location thousands of dollars a year, earmarking 85% of the revenue yield for public education.

The Owens bill also would have placed sweepstakes videogames under the purview of the North Carolina State Lottery Commission.

Of greatest concern to the industry, perhaps: the bill would have prohibited sweeps videogames in liquor-licensed locations. Operators in other parts of the country have said that any such ban would effectively cripple the market.

North Carolina is still waiting for a definitive ruling by the state Supreme Court on the constitutionality of an earlier law banning electronic sweepstakes.

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