Video gambling owners get extra week to get machines out of South Carolina

Thursday, June 1, 2000 | 3:46 a.m.

State Law Enforcement Division Chief Robert Stewart said Thursday the delay would help ensure "an orderly and timely implementation of the law." All machines must be unplugged July 1, and operators must destroy or remove the machines from South Carolina by July 8 or risk seizure by the state, he said.

In the meantime, with thousands of video gambling licenses having expired Wednesday, SLED had 30 agents looking for those without licenses, Stewart said.

"Folks on all sides of this issue have looked at this approach and think it's a sound and fair approach that will lead to a smooth transition," said Morton Brilliant, spokesman for Gov. Jim Hodges.

But Republicans accused Hodges, a Democrat, of caving to the industry. Hodges was elected in 1998 with help from gambling industry contributions.

"It appears that the governor is allowing is poker allies to run wild in their last days so that gambling contributions will continue to flow to the Democratic Party," said state Republican Party Chairman Henry McMaster.

Chuck Corne, whose Upstate Games business in Greer assembles, repairs and distributes video gambling machines, said one week was not enough time to get the necessary federal permits to move gambling devices across state lines. The alternative to avoid prosecution, Corne said, would be for owners of the machines to destroy their property.

Corne, who holds licenses to operate four machines, also assembles electronic gambling devices for sale to operators outside South Carolina, a business he'll lose because simple possession of the machines could invoke penalties after July 8.

"Isn't that big of them," Corne said of the grace period. "They've collected an enormous amount of taxes all these years. They are taxing us until June 30."

Corne questioned whether the ban on simply possessing the machines is constitutional.

"They are just bulldozing us. For a machine to just sit in a building I don't think is illegal at all," he said.

The General Assembly voted last year to outlaw video gambling and make ownership of the machines illegal after July 1 unless voters agreed to keep them legal in a referendum. The state Supreme Court ruled the referendum unconstitutional, but upheld the July 1 ban. The law carries criminal penalties of up to a year in prison and a $500 fine.

On Wednesday, 22,535 machine licenses expired. Of those, 12,340 applications for new licenses were approved late Wednesday by the state Revenue Department, which regulates the industry.

However, some machines already may have been moved out of state or licenses may be transferred among machines. Because of that, Revenue Director Elizabeth Carpentier estimated that about 4,000 machines are likely to be operating illegally.