Suit next for video poker phaseout

Attorney General Roy Cooper on Thursday rebuffed a request to stop a phaseout of the roughly 10,000 video poker machines across North Carolina. The phaseout is scheduled to begin Oct. 1.

As a result, a Raleigh law firm representing video poker businesses in North Carolina said it plans to file a lawsuit today to overturn the ban.

The legislature approved the phaseout in its recent session. Businesses are supposed to remove a third of the machines by Oct. 1, on the way to a total ban by July 1.

"The attorney general believes the law is constitutional and that it's also good public policy," said Melissa Lovell, a spokeswoman for Cooper.

Attorneys Gene Boyce and Dan Boyce of Raleigh say the new law is unconstitutional. In a letter they sent to Cooper this week, they contend video poker operators are being unfairly forced out of business while the state offers gambling with a new lottery and the Eastern Band of the Cherokee continues to offer the games at a casino in Western North Carolina.

"Our clients believe enforcement of this new law is illegal and unconstitutional and they request that you file an action to determine whether [the video poker ban] is illegal or unconstitutional before they suffer substantial losses of property, income and unemployment," the Boyces wrote.

With the exception of the Cherokee casino, state law prohibits video poker machines from paying out more than $10 in merchandise. State and local law enforcement had long sought a ban on the machines because they can be easily converted to pay out thousands of dollars in winnings. Some investigations have uncovered illegal gambling operations that have generated hundreds of thousands of dollars in revenues.

"We disagree with Mr. Cooper's public policy that it's better to send millions of dollars out of the state to Harrah's and GTECH and at the same time put over 100 mom-and-pop businesses out of business," Dan Boyce said Thursday. "We intend to file suit since he will not protect them."

Harrah's manages the Cherokee casino, while GTECH is a major lottery company that provides the scratch-off tickets and computer terminals for North Carolina's games.