Posted on Fri, Aug. 26, 2005


No N.C. lottery for now
Issue could come up again next year

Staff Writers

South Carolina has dodged a potential $150 million bullet from across the state line — for now.

Democratic leaders of the North Carolina Senate are one vote short and have given up on passing legislation this year that would create a state lottery there.

A Tarheel lottery could cost South Carolina’s game more than $150 million a year in revenue, S.C. officials say.

That could take up to $45 million a year out of education programs such as K-5 reading and math initiatives and tuition assistance at technical colleges paid for through lottery profits.

The N.C. Senate’s inaction was welcome news for S.C. lottery vendors close to the state line. At Miller’s Produce in Fort Mill, about 80 percent of lottery customers are North Carolinians who cross the state line to play.

“It certainly makes me happier,” said Jerry Warren, who has been in business with Miller’s Produce owner Steve Miller for many years. “It would cost us a good bit of business.”

Warren knows that Miller’s Produce has gotten more of a reprieve than a reason to celebrate, since N.C. lawmakers are likely to take it up again when they reconvene next May.

“Maybe I’ll be retired by then,” said Warren, 63.

S.C. lottery director Ernie Passailaigue said lottery officials here weren’t sweating the decision.

“We could look at it one of two ways,” he said. “We could say the world was coming to an end and hide our head in the sand, or we could see it as opportunity.”

By exploiting flaws in the proposed N.C. lottery bill — including what would have amounted to smaller prize pay-outs — Passailaigue said the Palmetto State would’ve come out on top.

“We were looking at it as a way to actually enhance sales from North Carolina,” he said.

State Rep. Richard Chalk, R-Beaufort, who once served in the N.C. legislature, agreed that South Carolina had nothing to fear from another border state with a lottery.

“Georgia’s (lottery) saw record years after South Carolina got its going,” said Chalk, who was surprised that North Carolina’s lottery plan stalled.

“With the downturn in the economy over the last few years, lotteries are looking a lot more attractive,” he said.

Other potential effects of a N.C. lottery on South Carolina:

• The potential loss for South Carolina is about 16 percent of the $953 million in annual lottery sales.

• Sales in border counties such as York and Horry, which enjoy a steady flow of out-of-state dollars, likely would take the biggest hit.

• A loophole in the proposed N.C. law could allow South Carolina and other states to advertise their lotteries across the border, which South Carolina currently does not do.

• South Carolina already has a $10 scratch-off game, and officials say a steady roll out of fresh games — such as the Palmetto Cash 5 unveiled earlier this year — would help give the state at least a temporary advantage.

• More importantly, South Carolina is part of the consortium of states that offers the profitable Powerball drawings. Even if it wanted to, North Carolina couldn’t join the drawing for at least a year.

Reach Stensland at (803) 771-8358 or jstensland@thestate.com





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