In Wilson County, commissioners are temporarily halting the permit process while officials draft an ordinance amendment to better define and regulate sweepstakes and electronic gaming centers. This pause comes at a critical time when Governor Roy Cooper is at odds with state lawmakers over teacher pay and school funding.
Senate leader Phil Berger and House Speaker Tim Moore recently unveiled the 2018-19 budget plan, promising a 6.5% average raise for public school teachers, a 6.9% pay hike for principals, and $35 million for school safety enhancements. Meanwhile, Governor Cooper is advocating for an 8% raise for teachers and over $100 million for school safety, funded by suspending a planned decrease in the state’s corporate tax rate.
The ideological divide is evident: the Democratic governor criticizes big-business tax breaks at the expense of public investment, while Republican legislative leaders label Cooper as a tax-and-spend liberal whose policies could hinder job growth. However, a potential win-win solution is being overlooked: video sweepstakes.
These electronic games, often found in “internet cafes,” have been a contentious issue in North Carolina. Despite repeated attempts to ban them, sweepstakes parlors continue to operate, leading to legal battles, police raids, and subtle game modifications that exploit legal loopholes. North Carolina’s struggle to ban these games has been costly and largely ineffective.
Legalizing, taxing, and regulating the sweepstakes industry could provide a substantial revenue stream for the state. Instead of spending millions on futile law enforcement efforts and legal proceedings, North Carolina could redirect these funds towards public education.
Opponents argue that video sweepstakes constitute gambling and have moral and social implications. However, gambling is a matter of personal freedom. Adults should have the right to spend their money as they choose. Moreover, since the approval of the North Carolina Education Lottery in 2007, over $3 billion has been contributed to public schools. Yet, due to budgetary reallocation, the tangible benefits for education have been minimal.
Legalizing and taxing electronic gaming could offer a chance to rectify past mistakes. Taxes on these games could be earmarked specifically for boosting teacher salaries and improving school safety, ensuring that funds directly benefit public education.
Governor Cooper’s proposal for 8% teacher raises and significant school security funding aligns with a commitment to enhancing public education. Simultaneously, maintaining business-friendly tax policies can promote economic growth. Taxing video sweepstakes presents a balanced approach that supports both goals.
Despite potential resistance from lawmakers, the reality is that the sweepstakes industry already exists in a legal gray area and continues to grow. Legalization and regulation would bring this industry into the open, allowing the state to benefit financially and provide better oversight.
North Carolina’s experience with sweepstakes prohibition has proven ineffective, with gaming centers reopening shortly after being shut down. This cycle is costly and unsustainable. If the state lottery was justified as a means to support public education, legitimizing and taxing an existing multimillion-dollar gaming industry should also be considered a viable option.
By embracing this approach, North Carolina can secure a new revenue source for public schools, ensuring better pay for teachers and safer learning environments for students. It’s time to recognize the potential benefits of taxing and regulating video sweepstakes, turning a contentious issue into a positive outcome for education.
