No N.C. lottery for
now Issue could come up again next
year By JEFF STENSLAND and
LAUREN MARKOE 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 |