Welfare lottery ban considered in North Carolina

According to the Raleigh News Observer, State Rep. Paul "Skip" Stam, a Republican from Wake, said he hopes to bring the proposal during the upcoming legislative session.

“We’re giving them welfare to help them live, and yet by selling them a ticket, we’re taking away their money that is there to provide them the barest of necessities," Stam said.

Stam acknowledged that there were concerns over how the ban might be enforced, especially because lottery clerks may not always be able to tell if lottery players are on government assistance. But in obvious cases, such as when customers use food stamps to buy groceries, they should not be permitted.

Stam said the purpose of the ban was for the protection of consumers, whom he says fall prey to deceptive advertising by the lottery, which tends to attract lower-income people who don't understand that their chances of winning are slim.

"What they are talking about is making it a more honest lottery," Stam said. He argued that the lottery advertises large cash payouts, but fails to explain the odds of winning big prizes and that even big wins are ultimately slashed by taxes and deductions.

According to North Carolina Policy watch, sales of lottery tickets are concentrated in impoverished counties, and that all but two of the 20 poorest counties have above-average ticket sales per capita.

Census data from the most recent American Community survey (2011) shows 28 percent of African American North residents fall below the poverty level (compared to 18 percent statewide). Nearly half of the families on food stamps in the state are African American, even though they make up less than 12 percent of the state's population.

The NAACP has historically been opposed to lottery bans, and Stam's proposed changes are no different.