Archdale approves law to regulate sweepstake centers
by Elizabeth Saunders
19 months ago | 1138 views | 0 0 comments | 4 4 recommendations | email to a friend | print
A statewide ban on sweepstakes businesses would have little effect on the budgets of Archdale and Trinity.

As the Archdale City Council prepared to consider regulations on electronic gaming, the N.C. Senate approved a ban on video sweepstakes games June 21. The bill moves to the House next for consideration.

The Winston-Salem Council passed a budget that included $400,000 of tax revenue from “Internet cafes” and “business centers.” If the bill banning these businesses passes in the House, the city will be forced to find that money elsewhere.

Archdale did not factor such revenue in its budget, nor did Trinity.

Sweepstakes centers in Archdale may feel the pinch instead. Business license fees of $500 per machine for electronic gaming, including sweepstakes, take effect today (July 1).

Sweepstakes centers have popped up at various locations in the city, but future businesses will be restricted. At the June 22 meeting, Council approved a zoning ordinance that limits hours to midnight, limits the number of terminals to 20, adds parking and location requirements for new businesses and prohibits alcohol. No one spoke at the public hearing.

According to a June 23 article in the High Point Enterprise, some state lawmakers want to tax electronic gaming. Others want to continue the state’s attempts to stop general gambling, including a 2006 ban on video poker.

Sweepstakes and business centers have been operating in a loophole of that law because customers pay for Internet time instead of putting money directly into the machines.

Councilman Eddie Causey said that an all-out ban would not affect Archdale’s bottom line. “We don’t know what Raleigh’s going to do,” he said. “We didn’t count on anything in the budget from it.”

Trinity does not have a privilege license system, so the city would not lose any revenue. So far, no sweepstakes centers have located in Trinity.

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