By Gary D. Robertson The Associated Press June 7, 2012 RALEIGH, N.C. Gov. Beverly Perdue asked North Carolina legislators Thursday totax video sweepstakes machines as long as they're legal for moreeducation money because lawmakers won't accept her earlier proposalto raise the sales tax. At a news conference the day after she signed a bill allowing livedealer games at the Cherokee casino, the outgoing Democraticgovernor told reporters that Republicans need to do something toboost public school funding. If they're not going to consider a temporary three-quarter centsales tax increase for next year, Perdue said, taxing andregulating the machines is another option. In March, the stateCourt of Appeals struck down the Legislature's 2010 ban on themachines, but the ruling has been appealed to the state SupremeCourt. Perdue had signed the 2010 ban into law, but she's suggested sincethe appeals court ruling state oversight might be the onlysolution. "Let me be clear. I've got a record on it and I don't likesweepstakes," Perdue told reporters, but "until we canoutlaw them or somehow the courts allow them to be outlawedforever, we need to tax the heck out of them and regulate themhard." The electronic sweepstakes games give people who buy Internet orphone time the opportunity to uncover potential cash and prizeswith mouse clicks on a computer screen. Sweepstakes software providers and an amusement machine companysued over the 2010 ban on the games, and the Court of Appeals ruledin a split decision that the ban was overbroad and infringes on thefree speech rights of their operators. Since then, the number ofsweepstakes cafes has grown and are common sights on big-city andsmall-town strip malls and street corners. Perdue's office said such regulation could bring in $300 millionnext year, although she didn't provide details about what aregulated industry would look like, leaving that to lawmakers. Thesales tax proposal would generate more than twice that amount. "I'm giving them another pathway, another piece of asolution" she said. "The bottom line for me is thatthey've got to fund public schools in a different way. There's gotto be more resources for our kids." The Legislature has been trying for more than a decade to rid thestate of video gambling machines and sweepstakes, saying the gamescan't be regulated, are addictive to players who lose hard-earnedmoney, and lead to crime and family strife. Traditional videogambling machines were outlawed in 2007. Sen. Tom Apodaca, a key leader in the Senate, which planned to rollout its budget early next week, called Perdue's idea"ridiculous" and said the Legislature shouldn't act inany way until the legal questions can be resolved. Apodaca, R-Henderson and a primary sponsor of the Cherokee casinobill, said sweepstakes machines can't be regulated because they'restrewn throughout the state. "Sweepstakes machines are a scourge on the public and it'scausing more and more problems," he said. "I don't see away to regulate them." House members have been slightly more willing in the past toconsider legalizing the sweepstakes machines and even video poker.A bipartisan bill would place state privilege taxes on videosweepstakes establishment and require operators to pay a 4 percenttax on the machines' gross receipts. Local governments already areplacing taxes on the machines. "A lot of people are against those machines but most people— if they are going to be here and they are illegal —they want to get revenue out of them and tax them as well,"said Rep. Bill Owens, D-Pasquotank. Amusement machine providers interested in seeing the gamesregulated are pleased with Perdue's announcement. "This is a positive step forward and we will work with heradministration and the North Carolina General Assembly as thispublic policy issue proceeds through the Legislature," ChaseBrooks, president of the Internet Based Sweepstakes Organization,said in a statement. The e-commerce company in China offers quality products such as Cardboard Display Stand , China Cardboard Display Box, and more. For more , please visit Printed Gift Boxes today!
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