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ASHEVILLE — Macon County sheriff’s deputies knew they had hit their own jackpot last month after seizing 19 video poker machines and $10,000 in illegal payouts.

Fueled by complaints elderly residents were betting away Social Security checks, Sheriff Robbie Holland sent out letters reminding businesses that state law forbids cash payouts and payouts for merchandise valued at more than $10.

Undercover officers learned to play video poker and tried their luck at the various machines in the county with a careful eye to those businesses that offered payouts over the maximum limit of $10.

After a five-month campaign, deputies, swooped in on illegal operations and hauled away the video poker machines.

Local law enforcement officials have found their own way to rid the state of illegal video poker while they waited for the General Assembly to take action. Today might be the day, as the state Senate is poised to vote on a gradual ban of the games.

Video poker defenders say 2,395 jobs and $224.3 million in state tax revenue are at stake. Those figures include direct and indirect jobs such as owners, repairmen, convenience store workers, and bars or restaurants where the machines are located.

Of the nearly $225 million: $57 million represents wages; $103.9 million represents the amount people spend on video poker and $63.4 million represents the “ripple effect,” according to a report issued last month that the video poker industry sponsored.

But these figures don’t squelch the desire for the state senate to abolish an industry that opponents say is difficult to regulate and brings corruption to the state.

Senators have passed legislation this year and in 2001 and 2003 calling for an immediate ban of the estimated 10,000 video poker machines, acting on complaints the industry is corrupt and not worth regulating.

Those bills failed in the House, which last week reversed course with legislation that would make the machines illegal by next summer. The legislation arrives for a vote in the Senate today.

Gov. Mike Easley has said he supports the state sheriffs association, which wants the machines banned.

“Last week we destroyed 16 machines,” Holland said. “We take them to the landfill, run a bulldozer over them and crush them.”

Cracking down

Local law enforcement agencies statewide have been cracking down on illegal video poker rackets.

In a raid last month in Fayetteville, authorities confiscated $1 million and 100 machines, renewing arguments some businesses offer cash payouts to encourage gambling.

Charles Bowling, manager of the Mountain Energy store on South Main Street in Waynesville, said lawmakers should leave video poker machines alone. About 30 people a day play his machines.

“I really and truly don’t see where it’s hurting anybody,” Bowling said as he demonstrated one of the three machines in his store.

Bowling said his machines have signs prohibiting people younger than 18 from playing. He doesn’t allow parents to have children on their laps when in front of the screens.

Bowling’s machines also have the required license and inspection sticker from the Haywood County Sheriff’s Office. County sheriffs regulate video poker machines.

Bowling said his staff is under orders to provide only store merchandise and gasoline as reimbursements for winning tickets. Store clerks can’t even give change if someone buys an item that is less than the $10 ticket amount.

The machines print out winning tickets $10 at a time. The tickets are good for 30 days.

The biggest jackpot at Bowling’s store was a $1,100 win, he said. The winner won playing a game that allowed him to select a “high roller” function that increased his credits.

“It took 45 minutes to print out all the tickets,” Bowling said.

The winner gave several tickets away to other customers in the store.

Breaking the law

Stores operating the machines illegally offer more than merchandise or credits, said Capt. Blaine Jones of the Waynesville Police Department. He has participated in video poker raids.

The process is simple: The winner gives the clerk a ticket and the clerk gives the winner cash.

The machine is not altered or modified to spit out cash so the operation is low-key. The incentive for a store to run an illegal operation is more players, which means more money from the company that owns the machines.

Typically, illegal operations keep hand-written records of payouts — sometimes with dates and names — to prevent clerks from taking a piece of the winnings, Jones said.

Other violations include having more than three machines in a store or operating unlicensed machines.

Richard Frye, a spokesman for the N.C. Association of Machine Operators, said it’s wrong to ban the machines altogether just because some are used illegally.

“We think we got lumped together with the crooks,” Frye said. “We pay taxes on our machines every three months.”

Pros and cons

State lawmakers limited the maximum number of video poker machines allowed to 10,000.

Some of the illegal machines have come from South Carolina, which banned the games in 2000.

Frye said he could sell a machine for $6,000. With a ban, the same machine will be worth $500.

“Most of these companies are looking at a 40 percent loss, not counting parts, equipment and route people,” Frye said. “All of that will have to go.”

The ban allows companies to sell machines to Harrah’s Cherokee Casino. Officials with Harrah’s did not return telephone messages seeking comment on whether the casino would be interested in buying them.

The video poker machine ban would not extend to the casino.

Bowling said the ban would hurt his business, “but not that much.”

Ending video poker would only shift problem gamblers to other games such as the lottery or casino games, advocates and opponents say.

“I’ve heard people say if you get rid of video poker machines, they’ll go to Cherokee,” Holland said. “Go to Cherokee. At least I will be able to use my resources toward something else, like drug prevention.”

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