North Carolina: alleged $3M political donations for gambling expansion

Garance Limouzy June 26, 2024

SiGMA news

North Carolina: alleged $3M political donations for gambling expansion

The expansion of the gambling industry in North Carolina has ignited a fierce debate, marked by intense lobbying, substantial political donations, and strategic manoeuvring. A new report, based on state and federal disclosures, alleges that the gambling industry has contributed approximately $3 million to influence legislative decisions.

In 2021, North Carolina introduced retail sports betting, followed by online betting. Three years later, the debate focuses on the potential establishment of new casinos, which has intensified lobbying efforts and increased political donations.

Targeted Donations

A recent report by Bob Hall, a political analyst and former executive director of Democracy North Carolina, a nonpartisan organisation that aims to strengthen democratic structures, reveals the extensive financial influence of gambling interests in the state. According to Hall, between January 2022 and March 2024, the gambling sector donated over $3 million to North Carolina candidates and allied committees supporting their re-election campaigns.

Key players in the gaming industry have allegedly made substantial contributions. For instance, The Cordish Companies, developers of a proposed casino in Rockingham County, North Carolina, donated $50,000, according to Bob Hall’s analysis of state and federal reports. Bob Hall also states that Grover Gaming, a major video poker machine vendor based in Greenville, NC, contributed $635,850.

The distribution of these funds heavily favours Republican candidates and affiliated committees who align with the industry’s interests and policies. Hall’s report states that $2.1 million was donated to two federal committees. These committees subsequently supplied 90% of the funding for “Citizens for a Better North Carolina”, another committee overseen by Senator Phil Berger, whose primary activity is to fund political campaigns.

A debated expansion

The expansion of gambling activities in North Carolina has sparked both support and opposition. Critics, such as anti-gambling organisations and concerned citizens, raise alarms about the potential social and criminal consequences. The North Carolina Sheriffs’ Association has specifically warned about possible rises in crime associated with gambling.

They also argue that the tax revenue from the gambling industry, often highlighted by advocates for expansion, ultimately originates from economically disadvantaged individuals who finance these companies through their wagers.

However, supporters of the expansion argue that the revenue generated from gambling could be earmarked for law enforcement, potentially mitigating these concerns and providing additional resources for public safety initiatives.

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