Grappling With The Rise In Sweepstakes Parlors

Maggie Martin (2010-03-23)

WILMINGTON, NC (whqr) - Sweepstakes parlors are springing up at a rapid pace around Wilmington and city council is concerned about the impact these places will have on local neighborhoods. They're holding a public hearing on a moratorium today.
City Councilman Ronald Sparks is worried, there's one there. There's a few machines I believe in one of those other places there."
"And that's just within a block of each other," I ask.
"Yes. Yes," Sparks says.
Driving down Carolina Beach Road in his dark blue SUV, Sparks points out the sweepstakes parlor's proximity to poor neighborhoods.
City records say there are 31 businesses with permits for sweepstakes machines and nearly 380 machines in Wilmington. Sparks is concerned those numbers could easily grow if rules aren't put in place soon.
"I just feel that we need to get a handling on these things before they proliferate everywhere."
Sweepstakes parlors first caught the attention of city council members back in December, when a North Carolina appeals court outlawed video poker but not the kind of internet gambling going on inside sweepstakes parlors.
The city wants to place a moratorium on any new parlors as a way to slow down a situation Sparks says is getting out of hand.
"It's just bring a clamant of gambling and Vegas as it were to Wilmington and I just see it as preying on poorer people cuz these things aren't being placed nearer affluent neighborhoods," says Sparks.
Jon Gen is setting up a customer to play. He takes a $20 bill from the man, puts it in the register and gives him a phone card with that amount. Swipe the card thru the internet gambling machine and an online version of a slot machine starts rolling.
Gen owns Triple Seven Sweepstakes off Market Street. He doesn't call this gambling, he calls it socializing.
"We consider this a meeting place, a form of entertainment. We're not dealing in that much money. And I think due to the fact that there are so many in town they should probably regulate."
Gen says on this night, it's exceptionally quiet. He says up to 70 players visit his parlor a day, instead of the handful sitting at his machines.
Dozens of machines that look like slot machines line the inside of the Triple Seven Sweepstakes. By 8 o'clock, a few players trickle in.
"It's kind of fun, enjoyable and relaxing," says Larry Jefferson Sr. He's a regular at Triple Seven, and also conflicted. On one hand, he encourages his friends to play. But on the other hand, he calls the sweepstakes parlors a trap for those desperate for cash.
"It's not good. Especially with the economy the way that it is, people just don't have the funds to initially involve themselves but they take the chance hoping there's a great outcome."
Jefferson supports Wilmington's call for a moratorium. Fellow sweepstakes player Chris Stevens disagrees.
"The moratorium bothers me and I think it's just restricting the freedoms of Americans. It's restricting your right to do what you please," Stevens says.
Including the right to win a few bucks.
"My biggest win has been about $180 I believe. And that was, believe it or not, on fifteen cents."
The debate over internet gambling isn't limited to Wilmington. Parlors are popping up across the state.
The North Carolina General Assembly is expected to tackle a bill banning it. Executive Vice President and General Counsel of the North Carolina Sheriffs' Association, Eddie Caldwell, says the matter could be resolved in the courts.
"The sheriff's believe, and all the legal advisors we've talked to believe that these sweepstakes machines are in violation of the current law. And so, if the court cases can be resolved and if the courts agree that the current law prohibits these machines, then there would be no additional regulation that would be needed."
And if the courts don't agree that sweepstakes parlors are covered by the video poker ban, then the fight could move to Raleigh where the internet gambling industry has reportedly hired lobbyists to fight any legislation banning sweepstakes parlors.