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Retailers, Players Could Run Into N.C. Lottery Red Tape

North Carolina LotteryNorth Carolina Lottery: Retailers, Players Could Run Into N.C. Lottery Red Tape

Owners at many convenience stores in North Carolina say they cannot wait to begin selling lottery tickets, but under the state's lottery law, they could run into red tape — and so could lottery winners.

"As soon as they say 'Now, you can apply,' we will definitely try to apply," said Bhavna Parmar, who owns a convenience store in Raleigh.

But applying may not be so easy.

Under the new law, storeowners must be current on all taxes — not just for their business, but also for themselves. They must also agree to a criminal background check, which may include fingerprinting.

"We intend to run a sterile operation," said Sen. Vernon Malone, D-Wake County, who said he does not think the law will discourage storeowners from applying. "This is a business with us."

Prizewinners may also get stuck in red tape.

Under the law, players who win more than $600 must provide their Social Security numbers to pay taxes to the Internal Revenue Service. The state's lottery commission will also check to see if they owe money to the state or local agencies, before winners can collect their prizes.

Some future ticket buyers call it an invasion of privacy.

"If they want to take out taxes, that's fine," said potential lottery player Gertrude Watson. "I respect that, but not to go through my records."

With such regulations, critics say it may take a record jackpot to make a ticket purchase worth the process of claiming a lottery prize.

Lottery experts say North Carolina is stricter than many other states when it comes to a lottery. The state's lottery commission will set more rules once members are chosen; they are expected to be named this week.

WRAL

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6 comments. Last comment 11 years ago by CASH Only.
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Tenaj's avatar - michellea
Charlotte NC
United States
Member #17406
June 18, 2005
4053 Posts
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Posted: September 20, 2005, 6:14 pm - IP Logged

We have a bunch of morons running this state.  Why do they have to be stricter than everybody else.  I love my state but sometimes I think the leaders sometimes are all 12 sides of stupid.

 

 

takeemtothebank

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    United States
    Member #1826
    July 11, 2003
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    Posted: September 20, 2005, 6:23 pm - IP Logged

    Go ahead, look at my tax records. Just pay me!!!

    (insert signature here)

      Tenaj's avatar - michellea
      Charlotte NC
      United States
      Member #17406
      June 18, 2005
      4053 Posts
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      Posted: September 20, 2005, 6:27 pm - IP Logged

      The way we get around it in SC is to not play more that 600 worth on a ticket.  SC's is 500.  If you win more than 500 in SC you have to go to columbia.  I wonder if it will be the same Charlotte-Raleigh is the capitol.

       

      What about pick 3s and 4s?  They never mention it.

      takeemtothebank

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        New Member

        United States
        Member #11820
        February 25, 2005
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        Posted: September 20, 2005, 10:28 pm - IP Logged

        Because of the tax issue, 7% in NC, it would be cheaper to still buy lottery tickets in SC if you live within a 30 min. range.

        As for me,I still prefer the Megamillion in Virginia. State tax on lottery winnings is only 4%.

          Tenaj's avatar - michellea
          Charlotte NC
          United States
          Member #17406
          June 18, 2005
          4053 Posts
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          Posted: September 20, 2005, 10:38 pm - IP Logged

          When a NC player purchased the winning powerball ticket in SC, I don't remember NC refusing to accept tainted gambling money.   

          They didn't have a problem in taking a tax cut.   

          takeemtothebank


            United States
            Member #379
            June 5, 2002
            11296 Posts
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            Posted: September 21, 2005, 11:24 am - IP Logged

            NY and other states withhold for more than tax purposes. I personally don't know anyone who had winnings deducted for other reason(s).