North Carolina House kills lottery legislation

Gary D. Robertson

Wednesday, Sept. 18, 2002 | 9:52 a.m.

RALEIGH, N.C. -- The state House on Tuesday rejected legislation that would have let North Carolina voters have their say on whether they want a state-run lottery.

The 69-50 vote against a referendum, which would have been added to the November ballot, was a major defeat for Gov. Mike Easley, who has been pushing a lottery to generate money for his preschool education and class-size reduction initiatives.

"It clearly sends a message that you can get something for nothing, that for a dollar or two you can win a jackpot," House Minority Leader Leo Daughtry, R-Johnston, said during the debate. "It is not the right thing to do."

The vote means the lottery issue is dead for the year, said Speaker Jim Black, who believed the defeat would become a campaign issue for the GOP. All but three Republicans joined 14 Democrats in defeating the measure.

North Carolina is one of 12 states without a lottery -- the only one on the East Coast -- but residents have been playing the numbers game for more than a decade in surrounding states.

Lottery supporters pushed the referendum this week as time wound down to get it on the Nov. 5 ballot. Election officials had said the question had to be approved this week to be included on absentee ballots.

The nonbinding referendum would have asked voters to check yes or no to the question of whether to have an "Education Lottery." The proceeds would go to programs to help at-risk 4-year-olds and to reduce class sizes, the question read.

The General Assembly still would have had to approve a lottery game for it to become a reality.

Easley, who wants a lottery to expand those education initiatives, complained that opponents failed to offer an alternative to pay for educating the state's growing school-age population.

"It is unbelievable that the Legislature would deny the people of this state the right to vote on a lottery," he said.

In the first House floor debate on the subject in recent history, opponents said running a lottery sends a bad signal to residents that the state supports gambling. They said a referendum campaign also would draw out-of-state gambling interests that would spend money to get a majority behind the measure.

"People should look to us to encourage them to do things that are good for them, not to encourage them to throw their money down a rathole," Rep. Martin Nesbitt, D-Buncombe, said.

Opponents also said the lottery is an unreliable source of revenue, preys on the poor and creates compulsive gamblers.

Pro-lottery lawmakers said state residents are educating children in other states through the games' proceeds. They said polls show a majority of North Carolinians support a referendum and it's time to let them have a choice.

Anti-lottery forces called legislators this summer, urging them to oppose a referendum, and enlisted the support of public figures such as the Rev. Billy Graham and former UNC basketball coach Dean Smith. The opponents were pleased after the vote.

"People voted today what they thought was not perhaps politically popular but what they thought was the right thing," said Chuck Neely with Citizens United Against the Lottery, one of several churches and organizations that fought the referendum.

Rep. Jean Preston, R-Carteret, said she changed her mind and decided to oppose the lottery after looking at other lottery states. She cited a Connecticut study showing women in the state report gambling problems nearly as often as men.

"I have been collecting data for 10 years, and the more I accumulate the less I'm inclined to support a lottery," Preston said.

North Carolinians are projected to spend more than $200 million this year on lottery tickets in Georgia, Virginia and South Carolina, according to one study.

South Carolina started its lottery this year, leaving Tennessee -- which has a referendum on its November ballot -- as the only neighboring state without one.

Estimates have a North Carolina lottery generating $250 million to $400 million in net proceeds annually.