An Internet sweepstakes company owned by George A. “Tripp” Sloane III, a member of the state Board of Transportation, owes the city of Wilmington $376,565 in privilege license taxes and late fees. Sloane, a Brunswick County developer, is also listed as the manager of the Cyber Spot LLC, which has about 60 Internet sweepstakes machines at its location at 29 Van Campen Blvd. in Wilmington. “My attorneys are working with the city on the issue,” Sloane said Monday. “Other than that I don’t have any comment.” It is unclear if Gov. Beverly Perdue knew of the debt to the city when she appointed Sloane to the state board last year. The state has a two-page application for boards and commissions. On the second page, question 11 asks: “Are you, or any company in which you or your spouse has a controlling interest, delinquent in paying any local, state or federal taxes?” Mark Johnson, the deputy communications director for Perdue, declined to release Sloane’s completed application. Johnson said it would be considered private because of personnel confidentiality laws. “Gov. Perdue believes everyone should pay their taxes, and Mr. Sloane is working through his lawyers to settle this dispute with the city,” Johnson said in a statement, adding that Sloane will remain on the board.
In Wilmington, like other areas across the state, the General Assembly’s 2010 ban on sweepstakes machines is not strictly enforced because of ongoing legal challenges. Wilmington instituted the privilege fees and enacted restrictive zoning rules in part to deal with the proliferation of sweepstakes machines. Since June 2010, the city has charged sweepstakes operators substantial privilege fees to operate, and Sloane is among sweepstakes operators who haven’t paid their full tab. On Feb. 3, the city mailed letters to registered agents of sweepstakes businesses who owed a combined $1.2 million in unpaid privilege fees and fines. Each of the machines in Cyber Spot was taxed at $1,500 twice a year. Including late fees, Sloane owes $108,750 from June 2010 to November 2010, $106,875 from December 2010 to May 2011, $55,625 from June 2011 to November 2011 and $105,225 from December 2011 to May 2012, according to the Feb. 3 letter. On June 30, 2011, someone made a $38,000 payment toward the balance. Gaming operators are fighting the privilege fees in court.
Perdue appointed Sloane to the 19-member state Board of Transportation last year, according to the state Department of Transportation. He represents rural transportation issues as an at-large member. He was sworn in on Oct. 6, 2011, said Tammy Stewart, a DOT spokeswoman. In 2011, Sloane gave Perdue’s campaign $5,000, but was refunded $1,000 by the campaign because the contribution exceeded the $4,000 maximum donation limit. Sloane also gave Perdue’s campaign $4,000 in 2006 and $4,000 in 2008, according to the State Board of Elections.
by Julian March and Patrick Gannon,
WILMINGTON STAR-NEWS, 3/26/12
