Potential N.C. lottery vendors can now apply with state
By Scott Nicholson

Turbulence has hammered North Carolina’s efforts to hold its first lottery, but retailers can begin applying to sell tickets or other lottery merchandise.

Gov. Mike Easley signed a lottery bill into law after its controversial passage by the General Assembly earlier this year, but the lottery commission has dodged charges of ethical violations, several of them in connection with Scientific Games, one of the vendors expected to bid on operating the lottery.

Despite the turmoil, Easley’s press representative Jill Lucas said the state is planning to open the games “as soon as possible.” Lucas said the vendor committee has had one meeting so far and will come up with its rules for operation. Retailers interested in selling tickets or scratch-off games, methods of which will be determined by the lottery commission, can apply through the state lottery Web site at www.lottery.nc.gov.

To qualify, lottery retailers must be at least 21, though younger retail employees can sell their tickets or numbers. Potential retailers must have some other business, and can’t rely solely on selling lottery tickets for income. They must also be up-to-date in paying any state taxes, and may not live in the same household as a commission member or employee.

If selected, retailers would have to be bonded and display a certificate of authority to sell tickets. The retailer must follow rules for accounting for tickets, sales and remission of funds to the lottery commission. The retailer must also not make any loan or gift to commission members or other commission employees or their relatives. Lucas said retailers would be selected once the criteria are established.

Lucas said the hiring of an executive director is the next step toward launching the lottery, which lawmakers had expected to start by late winter or early spring. The commission must also set rules on advertising so they don’t target a specific race or class. Advertising spending is capped at one percent of total revenues. The commission can also decide to allow state residents to participate in multistate jackpot lotteries such as Mega Millions or Powerball.

North Carolina lottery commissioner Kevin Geddings resigned recently due to past ties to a lobbyist working for a gambling vendor who may bid to run the state's new lottery. Scientific Games, which runs South Carolina’s lottery, had paid Geddings $24,500 this year for promotional work.

North Carolina House Speaker Jim Black has come under scrutiny for his appointment of Geddings. Geddings was also prominent in Democratic campaigns, earning nearly $109,000 last year as a party media consultant.

Geddings is the second person on the nine-member commission to resign in the past few weeks. Malachi Greene, a Charlotte City Council member, resigned after one meeting, said he didn’t have enough time to devote to the lottery commission.

The commission received 200 applications for its executive director position, though only 15 were found to be qualified. The commission expects to hold interviews this week.

At least 35 percent of the lottery revenues must go toward education spending, with half the money earmarked for prizes. Lottery retailers can earn up to seven percent of the total revenues, with eight percent going for administration. Lottery supporters expect it to raise $400 million in net proceeds per year.

* Scott Nicholson can be contacted at nicholson@wataugademocrat.com