Casino boats sail through loophole in S. Carolina law

Bruce Smith

Tuesday, Oct. 16, 2001 | 9:15 a.m.

BUCKSPORT, S.C. -- The Queen Mary II, with its red and black smokestacks, floats perfectly still in a backwater of the Waccamaw River. Yet this gambling boat is moving South Carolina into uncharted waters.

The converted tour boat is the first in the state to test a newly discovered loophole in existing laws that allows gambling on boats anywhere in the state.

"You may be able to dig a pond and put in a barge with any kind of gambling operation on it," says state Rep. Chip Campsen, R-Mount Pleasant. "Are we going to have casino boats on lakes Marion and Moultrie? Are we going to have blackjack on Lake Hartwell?"

Attorney General Charlie Condon warns such boats could spread across the state unless there is a comprehensive overhaul of gambling laws that have been on the books for decades.

"People need to keep their eyes wide open on this," he says. "I think it's headed the same direction as video poker."

Video gambling, which started in the state in 1986, grew to a $3 billion industry before it was banned last year.

The Supreme Court cited the loophole in July when it ruled in the case of a company operating ocean gambling cruises. The boats head 3 miles to sea, beyond state territorial waters, and the slot machines and gaming tables are open to play.

The court ruled such cruises legal and then went beyond that. Justice Costa Pleicones noted state laws prohibit gambling in specific locations but do not mention "vessel," "ship" or "boat" as prohibited locations.

That allows gambling on any body of water in the state, says Condon, who has asked for a rehearing. "We feel like in good faith we can't take any enforcement action," he says.

Eldon Wedlock, a constitutional law scholar at the University of South Carolina, says part of the problem is inconsistency in state gambling laws and in gambling technology that outstrips those laws.

"The Legislature doesn't like gambling so it passes a law it thinks is getting at the problem. But a lot of laws were passed in the '30s and before that," he says.

Since last month, a launch has ferried gamblers from the weathered dock of the nearby Bucksport Marina to the Queen Mary II. The boat, about 10 miles west of Myrtle Beach, is open for gambling from noon to midnight. One recent sunny afternoon, two women caught the first launch to the boat which is lined inside with video gambling machines.

"Don't use my name, my husband doesn't know I'm here," said one who has taken offshore cruises but said "this feels a little safer." The operator of the boat did not return several messages from the Associated Press.

The idea is to tie the boat up at the marina once there is zoning approval. A zoning appeals board has delayed a decision until the Horry County Council considers an ordinance requiring gambling boats to be at least 2,000 feet from homes.

"They have basically acknowledged the boats are legal in the broad sense but not suitable for many locations," says Fred Newby, an attorney representing the marina. He says such an ordinance would restrict the boats from locating just anywhere.

Charleston and Mount Pleasant earlier passed ordinances to block ocean-going gambling boats. Mayor Joseph P. Riley Jr. has said a casino boat "is not something we need in Charleston."

But Campsen wonders whether local governments can keep any gambling boats out. The state Supreme Court has ruled gambling laws must be uniform statewide.

"It's a combination of court rulings and old statutes that make for an extremely difficult regulatory climate," Condon says. "Ideally, there should be a commission or review of our entire gambling laws and have clear rules set so everyone knows what the rules are."

It's unclear whether lawmakers will take up the gambling boats next year at a time the state is setting up a new lottery.

Campsen says some lawmakers may see gambling boats as less objectionable because the General Assembly already has approved a lottery. But, other the other hand, he said, there may be more support for a ban because it's no longer just offshore cruises affecting a few counties.

"It's now gambling on any waters in the state," Campsen says.

But some inland communities might see gambling boats as a way to get some of the tourism dollars that flow largely to the coast.

"Lobbyists will say 'Why not? Why not have a casino boat on the Congaree River?' " Wedlock said. "You might get the city of Columbia saying, 'This is not a bad idea.' "

archive