Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 27, 1993 TAG: 9304270223
SECTION: VIRGINIA PAGE: C3 EDITION: NEW RIVER VALLEY
SOURCE: BONNIE V. WINSTON STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium
Sixteen of the top 20 lottery retailers in Virginia are along the North Carolina border. Instant-ticket sales would drop by 11 percent, Pick 3 and Pick 4 sales by 7 percent, and the pick-6 Lotto game by 6 percent if North Carolinians quit gambling in Old Dominion, Virginia lottery board members were told Monday.
North Carolina's legislature is closer than ever to approving a lottery. While church groups have defeated past efforts, North Carolina Gov. James Hunt recently indicated he'd sign a lottery bill with a referendum provision, leaving the choice up to voters.
Three bills, all containing referendum provisions, have been introduced in the North Carolina General Assembly. At least one is expected to be acted upon before the legislature adjourns June 30.
Sen. Marc Basnight, president pro tem of the North Carolina Senate, and House Speaker Daniel Blue Jr. have said they would not block a lottery bill.
The earliest a statewide vote can be taken is spring 1994, Blue's spokesman said Monday. The games would start six months after that, Virginia officials estimated.
"We don't think we'll see an immediate revenue drain," said James Nulph, the Virginia lottery's director of marketing. But he noted that the state's lottery may be further damaged if Virginians start playing in North Carolina.
"They may not go for small prizes, but a big jackpot may motivate them to drive to North Carolina," Nulph said.
A $70 million annual drop in sales translates to $25 million less per year for Virginia's general fund, Nulph said. General fund dollars go toward a myriad of needs, including public schools, health and social services.
Lottery board members also learned Monday that gambling proceeds will pay the full cost of the planned $17 million state lottery headquarters in downtown Richmond. The department is scheduled to occupy just more than half of the 200,000-square-foot building.
Raymond Patterson, director of the state's General Services Department, said original plans called for state agencies moving into the eight-story structure to pay enough rent to cover the construction debt.
The General Assembly agreed this month to require the lottery to pay the entire cost of the building, an annual debt payment of $1.1 million.
Patterson said the lottery also would be expected to pay $5 to $10 per square foot in rent, depending on the contract negotiated with the state.
The lottery now pays more than $840,000 annually in rent, at rates of $12.57 and $15 per square foot, at two Richmond offices.
Construction on the site, located across from Capitol Square, is expected to begin next year, with occupancy in early 1996.
Memo: shorter version ran in the Metro edition.