A video poker player touches the screen while playing at a convenience store in Greenville, S.C. Gov. David Beasley is under pressure to cut state revenue from the $2 billion industry.BART BOATWRIGHT/ASSOCIATED PRESS

Poker funds could drop from budget

Governor being pressured to remove estimated $62 million in machine licensing fees from upcoming budget proposal

Web posted January 4, 1998

Associated Press

COLUMBIA -- Video gambling opponents want Gov. David Beasley to start the battle against the almost $2 billion industry by eliminating machine licensing fees from his upcoming budget proposal.

That would give state government an estimated $62 million less to spend, but it also would serve as tangible proof that Mr. Beasley intends to act upon his long-stated opposition to gambling, proponents of the move say.

``I would think that based on David Beasley's philosophy, he has got to be considering it if he wants to rid this state of video poker,'' said Sen. Greg Ryberg, R-Aiken.

Beasley spokesman Gary Karr would not say how the budget proposal would treat gambling money.

Republican state Treasurer Richard Eckstrom's suggestion that policy-makers shun poker money has ``not been dismissed out of hand,'' Mr. Karr said.

Last month, Mr. Eckstrom urged Mr. Beasley and legislative budget writers to drop all video-poker money from the budget. ``It's not responsible to assume that the state will continue to receive up to $60 million per year from an industry whose legality has been challenged by high-ranking state officials,'' Mr. Eckstrom said.

Nearly two dozen bills that would restrict, eliminate, tax or hold a statewide referendum on video gambling await lawmakers' action. The state Revenue Department also has proposed regulations that would wipe out videopoker casinos.

In addition, state Attorney General Charlie Condon is asking to join a federal class-action lawsuit that seeks to have video gambling declared an unconstitutional lottery.

Mr. Beasley's plan for the $4.9 billion budget is to be released Jan. 12, a day before lawmakers return to Columbia for the 1998 legislative session.

More than 30,000 of the electronic games are in use across South Carolina; the industry was on pace to collect $2 billion in bets in 1997.

Video-gambling advocates have touted the money generated for the state by a two-year, $4,000-per machine license. Some have advocated that the state should embrace gambling by enacting even higher taxes and more sweeping regulations.

Opponents worry that if lawmakers start drawing up spending plans that include gambling money, it would be difficult to reverse course later in the legislative year.

``It's important to start at the beginning of the budget process instead of saying later, `Oh my God, we've got to replace the money,''' Mr. Ryberg said.

``If it gets by the House without anything being done, you're really behind the eight ball,'' he said.

House budget writers might cut the money if Mr. Beasley doesn't, said House Speaker David Wilkins, R-Greenville.