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North Carolina Governor Vetoes “Casino Night” Legislation

Cliff S, Jul 12, 2017 11:14 UTC

North Carolina Governor Roy Cooper (D) vetoed House Bill 511 today, which would have legalized charitable casino nights. Gov. Cooper said the bill might have allowed for-profit operators to masquerade as nonprofit charity organizations.

Cooper said he was not against charities organizing occasional game nights or poker events, but he said HB511 could have caused “unintended problems”. The first-year governor’s main concern was the proliferation of video poker gaming through such charities.

The governor, who signed 13 other bills into law on Wednesday, said, “Legitimizing charitable gambling in this way could give video poker a new way to infiltrate our communities.”

Casino Night Expansion

House Bill 511 involved the expansion of “casino night” events from charities and nonprofits to employees and trade groups. It is an open-ended definition which some lawmakers thought could be abused by unethical operators. The bill would have allowed alcohol to be served at casino nights, which concerned some legislators.

Under HB 511, casino nights would have been allowed by a wide range of organizers, if no money was paid in admission or prizes. That would seem to create a safe gaming environment with little chance for abuse, but the large number of licenses issued were a concern to opponents of the bill. Enforcement of the no-admission and no-prize money stipulations might be difficult, given the large expansion in the number of license holders.

Ban on Roulette and Sweepstakes Machines

A key component that Gov. Roy Cooper did not like was the provision involving “roulette and sweepstakes machines“. Gaming machines are illegal throughout the rest of North Carolina, so their use by gaming operators masquerading as trade groups seemed to concern the governor.

GOP Could Override the Veto

Republicans in the state legislature have the numbers to override the veto, though it is uncertain if they will. It takes three-fifths majority in both houses to override a veto in North Carolina.

While the GOP has a majority in both houses over 60%, both the support and criticism of House Bill 511 was bipartisan. With significant criticism from the Republican side of the aisle, it is uncertain whether Senate President Pro Tempore Phil Berger (R) and Speaker of the House Tim Moore (R) can put together veto-proof majorities on the issue.

Possible Amendments to HB 511

Tweaking HB 511 with the right amendments is one path to passage. One issue Roy Cooper had with the legislation was the relative lack of punishment for criminal offenders. If Gov. Cooper’s criticism of the current version of House Bill 511 is taken as a suggestion, Phil Berger and Tim Moore might support tougher penalties for those who break the new law involving so-called video poker machines.

In his comments after the veto, Governor Cooper said, “Allowing the industry to masquerade as a charity could cause unintended permits to be issued, and without tough criminal penalties, enforcement would be difficult.”

Debate on House Bill 511

That might not be the case. Proponents and opponents repeatedly debated and amended House Bill 511 prior to the votes on the bill, which resulted in a 76-32 win in the House and a 27-15 margin in the Senate.

If the voting stood as it did at the time of the original vote, then the North Carolina House and Senate each would override Gov. Cooper’s veto. In fact, they are one vote shy of a two-thirds majority in both houses.

Governor Roy Cooper Profile

Democratic Governor Roy Cooper has had a contentious first few months with North Carolina’s Republican lawmakers. Cooper won a close election over the incumbant Gov. Pat McCrory (R), the first time since 1850 that a sitting governor lost reelection in North Carolina.

It took until December 5, almost a month after the vote, for Pat McCrory to concede defeat. Before Roy Cooper took office, the Republican-controlled legislature passed several measures stripping the North Carolina governor of power. Those votes are being fought over in court. Meanwhile, the GOP legislature have overridden several vetoes by Governor Cooper.

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