VIDEO POKER
New Legislation (Bill 3834)

The recently enacted Video Poker law calls for a referendum in November 1999 on South Carolina's 35,000 video poker gambling devices.

On July 1, 1999, the S. C. General Assembly ratified H.3834 calling for a referendum on video poker and establishing new and conservative restrictions on the gaming industry. The bill has been signed into law and the South Carolina Department of Revenue is currently drafting regulations to implement the new statute. At this time, there are questions about some of the details of the law, but the following provides a brief summary of the new video poker legislation.

• Statewide Referendum - November 2, 1999. Yes/No on continued cash payouts.
  
  "Shall cash payouts for credits earned on video game machines continue to be allowed after June 30, 2000?"
  
  Generally, most current regulations stay in effect until December 1, 1999. A "No" vote on November 2nd would ban payouts and would effectively end legal video poker gambling in South Carolina by July 2000. A "Yes" vote would cause the following regulations to take effect on December 1, 1999:
• Casinos - For the first time, casinos will be defined as two or more "single places or premises" that are located within the same structure (essentially, businesses with more than five machines). Casinos must be re-licensed and will be strictly monitored by the S. C. Department of Revenue.
• Casinos - Casinos "not licensed and operating" by May 31, 1999, must close. No additional machines may be added to existing casinos. All casinos would shut down on June 1, 2004, unless county councils enact ordinances to keep them open.

• ACOG staff member Mike Sell showing Cherokee County Administrator Ben Clary a COG-developed program that assists in tracking county video poker permits.

  Casino Boats - Not addressed.
• Payout - $500 maximum at cashout (as opposed to the current $125 per day).
• Maximum Bet - $3 per hand/play.
• Computer Monitoring -To be implemented by February 1, 2000.
• License Fee - Unchanged, $4000 per two-year license period.
• New Tax - 25% on net income after payout. Local Government Fees - No change, $360/two-year period.
• Restrictions Upon Local Governments - No city or county may limit the number of machines within the jurisdiction (12-22-340).
• Zoning - Local governments may zone the location of machines.
• Distance - One hundred feet between new and existing businesses with machines (unless waived by SCDOR after a public process). 300/500 foot property line to property line measurement between machines and churches, schools, parks, playgrounds and some residential subdivisions.
• Alcohol - Separate room for machines and alcohol.
• Age Limit - Must be at least 21 to play.
• New Penalties - 1-5 years imprisonment and up to $25,000 fine for tampering with machine hookups, failure to have metering device, etc. Other severe civil and criminal penalties for various violations.
• Background Checks - "A security, criminal, and credit investigation" will be conducted before a license is issued.
• SLED Enforcement Money - $200 per license to be used for enforcement. Advertising - A green square, no other signs permitted.
• Machine Payout - 90+ % payout.
• Regulations - S. C. Department of Revenue will draft regulations to implement this law.

A full copy of this law can be found and printed from the S. C. General Assembly's Home Page at http://www.lpitr.state.sc.us/bills/3834.htm

The Appalachian Council of Governments will continue to work with member governments over the next few months as video poker regulations are implemented. Contact Joe Newton or Mike Sell for further information.