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A few blogs back, I took a swipe at video sweepstakes as a “seamy enterprise.”
 
Brad Crone, who consults with the Internet Based Sweepstakes Organization, replies:
 
“What's the difference between a mid-level manager playing a round of golf for $200 in Pinehurst versus a plumbers assistant spending $20 on video sweepstakes?  There isn't any; it’s relative. Except the golfer will probably being paying some taxes for his cart and green fees. 
 
“For those who say sweepstakes prey on the poor and helpless, have you run the numbers of lottery outlets in Durham County versus the number of video sweepstake operators?
 
“Yes, there's money to made in video sweepstakes, but the Cherokee just last week got table games and got a sweetheart deal where they will generate millions and only give the state back like $3 million...for the next 20 years.
 
“Gambling is gambling whether you are playing the lottery, live games in Cherokee or a video sweepstake game in Roanoke Rapids.  At least a regulated market would provide some framework for the consumer and operator and the ability for law enforcement to know what's legal and what's not...Oh, did I mention $500 million by year three and that's according to the NC Education Lottery - not the industry.”
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Chris
# Chris
Sunday, June 17, 2012 10:17 AM
The fact that the state-run lottery is seamy doesn't make these video sweepstakes any less seamy. His argument is a bit like saying "Well, you've tolerated prostitution on one street corner, so you ought to let me expand it city-wide" or "Well, you slept with Joe, so you ought to be willing to sleep with anybody."
Carbine
# Carbine
Sunday, June 17, 2012 3:45 PM
Brad sinks his own argument when he brings the lottery into it. The lottery's own figures show that it drains far more money out of poor areas than more affluent ones. But he's right about one thing--gambling is gambling, regardless of the form it takes. All gambling is nothing more than a systematic way for smarter, more powerful people to cheat the weak and the stupid out of their money. Government "regulation" of it via state lotterys or other schemes doesn't make it any less dangerous to the weak and the poor, but rather serve to further corrupt government, as we've already seen here in NC.

Of course, Brad doesn't really care one whit about the $500 million a year that video sweepstakes is projected to generate. All he really cares about is the portion of those earnings that the industry will hand over to lobbyists, like Brad Crone, to grease the industry's way in Raleigh.

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