Gambling ban will deny Fayetteville revenue (Fayetteville Observer)
FAYETTEVILLE A city official estimates that Fayetteville will lose $1.2 million in new revenue because of the state’s ban on sweepstakes gambling businesses.
The City Council recently adopted a budget that included new fees on the owners of gaming parlors. The city planned to charge them $2,000 per location and $2,500 per computer terminal. Hope Mills adopted the same fees in June.
While the fees may seem high, they aren’t unprecedented; the city charges “privilege license” fees on an array of occupations and companies that do business in Fayetteville.
The General Assembly voted Wednesday to outlaw the gambling parlors, often called Internet cafes, starting Dec. 1. Gov. Bev Perdue is expected to sign the legislation.
Police Chief Tom Bergamine applauded the ban and said gambling parlors contribute to crime. He urged the governor to sign the bill.
Bergamine’s statement appeared to catch Assistant City Manager Doug Hewett off guard. He wrote Bergamine an e-mail the same day saying the legislature’s action will cost the city $1.2 million in lost revenue. “Not sure if that story is being told,” Hewett said in the e-mail.
Bergamine said gambling parlors are an attempt to get around the state’s ban on video poker machines.
Fayetteville Mayor Pro Tem D.J. Haire said the city budget included the new fees to begin taxing sweepstakes cafes if the state didn’t ban them.
“That was one way of hoping to slow it down,” he said.
Published Sun, Jul 11, 2010 04:30 AM
Modified Sun, Jul 11, 2010 04:30 AM
