North Carolina Explores Video Gambling Machines Legalization

While talks about the introduction of mobile sports betting continue, a new bill seeks to further expand the gambling options available for North Carolina residents. House Bill 512 (HB 512), sponsored by Republican Rep. Harry Warren, resembles a proposal he supported back in 2021. In essence, the bill calls for the regulation of gambling machines in the state that can bring benefits in the form of tax revenue, which can be used for funding different programs.

The proposal calls for the lottery in the state to be in charge of the distribution of such machines that can be positioned in different businesses such as restaurants, bars or shops. Visitors of those locations that gamble would do so legally and will have the option to collect their winnings in cash.

Warren’s proposal was heard Tuesday by a House committee, the Associated Press reveals. Still, it remains unclear whether HB 512 will be able to gain further traction. Additionally, the Senate is yet to debate the proposal, so it is safe to say that it faces long odds, at least for the moment.

The Proposal Seeks to Eliminate the Black Market

Although North Carolina is far from legalizing such gambling machines, opponents of the bill have already voiced their concerns with the Christian Action League of North Carolina’s, Rev. Mark Creech, asking why such a proposal would receive support given that “video lottery terminals are linked to the worst gambling harms.”

But Warren’s idea isn’t to simply expand gambling. He argues that the new proposal seeks not only to raise tax revenue but to reduce the share of the illegal gambling machines that continue to gain popularity in the state. Warren claimed that there are an estimated 60,000 to 100,000 video and sweepstakes gambling machines that operate illegally.

“The real reason that these things flourish is because people play them. By restricting, regulating and reducing the supply, we can eliminate sweepstakes parlors and the seedy aspects of unregulated gambling, replacing it with a limited supply of gaming entertainment that fulfills the public demand in a safer, controlled environment and safer conditions.”

Harry Warren, Rowan County Rep.

According to Warren, the reason why illegal gambling machines continue to enjoy popularity is because there are people that enjoy gambling. Still, he said that the introduction of a robust regulation that provides restricted gambling entertainment can reduce the share of the black market and at the same time deliver a safe form of entertainment for the public. The revenue, which may come from the proposal supported by Warren, can be used for different state programs related to college education, providing vital funds for people that need it.