Fayetteville seizes property from sweepstakes firms that owe privilege license fees
Published: 06:47 AM, Wed Dec 14, 2011 The Fayetteville Observer
The city of Fayetteville has taken the unusual step of seizing furniture, computers and other property from two Internet sweepstakes businesses that the city said each owed more than $200,000 in privilege license fees. At the request of The Fayetteville Observer, city spokeswoman Jennifer Lowe on Tuesday identified the two businesses as SWAT Gaming Group at 664 Country Club Drive and 777 Sweepstakes at 6257 Raeford Road. Lowe said SWAT Gaming owed more than $238,000 in delinquent license fees, and 777 Sweepstakes owed more than $200,000.
City officials said police officers accompanied city employees with a moving truck when they took the property from inside the businesses, sometime within the past month. Lowe said the seized property will be sold. The city plans to target other businesses with the highest amounts of delinquent privilege license fees. The fees are an annual tax charged to many entities that do business in the city limits.
Efforts to reach someone at the sweepstakes businesses were unsuccessful. Last year, the city began charging fees of $2,000 per sweepstakes cafe and $2,500 for each computer terminal. The fees add up for owners with multiple terminals. Other cities also have levied hefty licensure fees against the gaming businesses, which have sprung up in old storefronts and strip centers.
At the gambling businesses, customers can buy Internet or phone time to play variations of card and number games on computer terminals. Their purchased time gives them chances to win cash prizes.
Fayetteville City Attorney Karen McDonald said state law gives cities broad authority to enforce the collection of license fees. One way is seizing property, she said. "The city is aggressively pursuing the collection of privilege license fees," McDonald said. McDonald said seizing property from a delinquent business owner doesn't require a warrant or court action. The city is taking the action only after other attempts to collect the money have failed, including warning letters, she said. The action is not unprecedented. The city seized property for similar reasons in the early 2000s, McDonald said.
Other remedies cities can use to collect privilege license fees from business owners, she said, are through attachments of bank accounts, garnishments of state tax refunds and lottery winnings. In city warning letters, delinquent business owners are told that "failure to pay a privilege license could result in the issuance of a criminal citation." McDonald described the seizures under police escorts as a "levy" and "a last resort" to collect a tax that was six months past due. She said it would be incorrect to describe the actions as raids.
Sunday, December 18, 2011
Wednesday, November 30, 2011
Still no ruling on video gaming in North Carolina
Hickory Daily Record
By: Sharon McBrayer Published: November 26, 2011
HICKORY --
Both sides in the Internet Sweepstakes debate are waiting on the North Carolina Court of Appeals to make a ruling on recent appeals.
Two cases currently are pending in the appeals court regarding enforcement of the law against video gambling, said Noelle Talley, public information officer for the North Carolina Department of Justice.
The state Court of Appeals recently heard arguments from the North Carolina Department of Justice and separately from Sandhill Amusements and Hest Technologies, two of the companies that provide Internet sweepstakes software and gaming.
Hest Technologies is appealing a ruling in Guilford County, while Sandhills Amusements is involved in a Wake County case.
The judge in the Guilford County case struck down part of the state’s law that banned the gaming in 2010, while the judge in the Wake County case upheld the law.
Around this time last year, Judge John Craig III of Guilford Superior Court in High Point ruled that the state has the right to limit games that mimic gambling. His order said a game that mimicked card games, bingo, craps, keno, lotto or a game that required a player’s skill was illegal. But he said a subpart of the state’s new law banning Internet sweepstakes gambling is unconstitutional and infringed on free speech.
Before the Guilford ruling, Wake County Superior Court Judge Paul Ridgeway dismissed a lawsuit filed by Sandhill Amusements that challenged the state’s law that went into effect in December last year. In his order, Ridgeway dissolved a preliminary injunction previously entered by the court on June 26, 2009 barring law enforcement from enforcing the previous state law on sweepstakes gaming. Cooper has argued that the two judge’s rulings contradict one another.
“So, basically we are waiting for the Court of Appeals to rule,” Talley said.
A three-judge panel will review written and oral arguments from both sides and then issue an opinion in the cases. Decisions from the Court of Appeals usually come months after the oral arguments, Talley said.
The legitimacy of Internet sweepstakes gambling has been a cat-and-mouse game between the state and its lawmakers and the gaming industry for years. Lawmakers pass a new bill that outlaws gambling and proponents of the gaming industry find a loophole in the law or sue to get the law overturned.
Proponents argue the state allows other forms of gambling — North Carolina Education Lottery and the Eastern Band of Cherokee casino — and it should allow Internet sweepstakes gaming so it can regulate the industry and receive tax revenue from it. They say the gaming is a form of entertainment for people.
Chase Brooks, president of the Internet Based Sweepstakes Organization of North Carolina, argued in an e-mail sent out last week by the organization that the state will now receive tax revenue from the Cherokee casino from its ‘live-dealer’ games such as poker, dice games and roulette.
Brooks says the Internet sweepstakes industry isn’t going away in the state. It will adapt and change as needed, he said.
“Our message is simple. We will find a way to survive. There is a valid market for this type of gaming and entertainment. We will adopt to the law and we will continue to operate,” said Brooks. “We think it is time for the leaders of the state to work with the video entertainment industry to find ways to regulate it and do like they are doing in Cherokee, tax it to generate new revenues with it.”
Opponents say the gaming preys on those who can least afford it by seducing players and taking their money.
For its part, Talley said the state Department of Justice is doing its job.
“Our job here is to defend the state law,” Talley said.
By: Sharon McBrayer Published: November 26, 2011
HICKORY --
Both sides in the Internet Sweepstakes debate are waiting on the North Carolina Court of Appeals to make a ruling on recent appeals.
Two cases currently are pending in the appeals court regarding enforcement of the law against video gambling, said Noelle Talley, public information officer for the North Carolina Department of Justice.
The state Court of Appeals recently heard arguments from the North Carolina Department of Justice and separately from Sandhill Amusements and Hest Technologies, two of the companies that provide Internet sweepstakes software and gaming.
Hest Technologies is appealing a ruling in Guilford County, while Sandhills Amusements is involved in a Wake County case.
The judge in the Guilford County case struck down part of the state’s law that banned the gaming in 2010, while the judge in the Wake County case upheld the law.
Around this time last year, Judge John Craig III of Guilford Superior Court in High Point ruled that the state has the right to limit games that mimic gambling. His order said a game that mimicked card games, bingo, craps, keno, lotto or a game that required a player’s skill was illegal. But he said a subpart of the state’s new law banning Internet sweepstakes gambling is unconstitutional and infringed on free speech.
Before the Guilford ruling, Wake County Superior Court Judge Paul Ridgeway dismissed a lawsuit filed by Sandhill Amusements that challenged the state’s law that went into effect in December last year. In his order, Ridgeway dissolved a preliminary injunction previously entered by the court on June 26, 2009 barring law enforcement from enforcing the previous state law on sweepstakes gaming. Cooper has argued that the two judge’s rulings contradict one another.
“So, basically we are waiting for the Court of Appeals to rule,” Talley said.
A three-judge panel will review written and oral arguments from both sides and then issue an opinion in the cases. Decisions from the Court of Appeals usually come months after the oral arguments, Talley said.
The legitimacy of Internet sweepstakes gambling has been a cat-and-mouse game between the state and its lawmakers and the gaming industry for years. Lawmakers pass a new bill that outlaws gambling and proponents of the gaming industry find a loophole in the law or sue to get the law overturned.
Proponents argue the state allows other forms of gambling — North Carolina Education Lottery and the Eastern Band of Cherokee casino — and it should allow Internet sweepstakes gaming so it can regulate the industry and receive tax revenue from it. They say the gaming is a form of entertainment for people.
Chase Brooks, president of the Internet Based Sweepstakes Organization of North Carolina, argued in an e-mail sent out last week by the organization that the state will now receive tax revenue from the Cherokee casino from its ‘live-dealer’ games such as poker, dice games and roulette.
Brooks says the Internet sweepstakes industry isn’t going away in the state. It will adapt and change as needed, he said.
“Our message is simple. We will find a way to survive. There is a valid market for this type of gaming and entertainment. We will adopt to the law and we will continue to operate,” said Brooks. “We think it is time for the leaders of the state to work with the video entertainment industry to find ways to regulate it and do like they are doing in Cherokee, tax it to generate new revenues with it.”
Opponents say the gaming preys on those who can least afford it by seducing players and taking their money.
For its part, Talley said the state Department of Justice is doing its job.
“Our job here is to defend the state law,” Talley said.
Sweepstakes parlor owners hope to benefit from Cherokee deal
RALEIGH, N.C. — As they battle to overturn a state ban on their video-style games, owners of Internet sweepstakes parlors are now eying a proposed casino deal between North Carolina and the Eastern Band of Cherokee Indians.
Gov. Beverly Perdue and tribal leaders finalized an agreement Monday that would allow live card dealers at the Harrah's Cherokee Casino and Hotel in the mountains in exchange for North Carolina school districts getting a piece of profits from the new games.
"We would also like for the legislature to look at our industry as well," Brian Henry, treasurer of the Internet Based Sweepstakes Organization, said Tuesday. "We would just like a seat at the table with our legislature to have our industry regulated and have it taxed." Read More
Gov. Beverly Perdue and tribal leaders finalized an agreement Monday that would allow live card dealers at the Harrah's Cherokee Casino and Hotel in the mountains in exchange for North Carolina school districts getting a piece of profits from the new games.
"We would also like for the legislature to look at our industry as well," Brian Henry, treasurer of the Internet Based Sweepstakes Organization, said Tuesday. "We would just like a seat at the table with our legislature to have our industry regulated and have it taxed." Read More
Wednesday, September 28, 2011
South Carolina retailers who offer electronic sweepstakes to customers are feeling jittery.
“The question is, are electronic sweepstakes legal in South Carolina?” said Alexander Shadwick, after Tuesday’s meeting. “They don’t know if the games are legal or illegal, so the courts have to decide,” he said. “But it scares all the retailers.” Shadwick likened the activity to using coupons or putting in $20 and purchasing songs on iTunes while also being entered into a contest.
This month The State newspaper quoted the S.C. State Law Enforcement Division chief announcing a renewed effort to combat illegal video poker games. The industry was banned in 2000 but frequently arises in legislative debates about relaxing the state’s restrictions on raffles.
During Tuesday’s committee meeting, Paula Harper Bethea, the executive director of the S.C. Education Lottery, shied away from the suggestion that she was targeting “sweepstakes” in a warning she issued to retailers. “I’ve heard the whole sweepstakes-game talk, frontwards, backwards, and that’s not for me to decide,” she said. “A magistrate in South Caroline ultimately has to decide that. ... What I do enforce, however, is who sells our lottery products.”
She said she has been working with lottery officials in Georgia and North Carolina on how to address the effects of Internet gaming on state-run lottery programs. In May, Bethea sent a letter to the state’s 3,700 ticket retailers to warn them that the agency could revoke or suspend their lottery license if they violate state laws.
“Please be aware that a machine can be determined to be illegal by a local judge even if cash or other items are not given in exchange for credits earned while playing the machine,” wrote Bethea. “You may wish to consult with an attorney or local or state law enforcement officials to assist you in determining which machines are appropriate under state law and which are not.”
In June the S.C. Attorney General’s office responded to a question from Beaufort County Sheriff P. J. Tanner. The county official was asking whether the owner of a Hilton Head Island restaurant could operate Sweepstakes Promotional electronic games by Products Direct, LLC.
The letter said the office was unable to say if a specific machine was illegal. But if police had probable cause that it was, then the machine should be seized and taken to the magistrate, who could decide on a machine-by-machine basis
This month The State newspaper quoted the S.C. State Law Enforcement Division chief announcing a renewed effort to combat illegal video poker games. The industry was banned in 2000 but frequently arises in legislative debates about relaxing the state’s restrictions on raffles.
During Tuesday’s committee meeting, Paula Harper Bethea, the executive director of the S.C. Education Lottery, shied away from the suggestion that she was targeting “sweepstakes” in a warning she issued to retailers. “I’ve heard the whole sweepstakes-game talk, frontwards, backwards, and that’s not for me to decide,” she said. “A magistrate in South Caroline ultimately has to decide that. ... What I do enforce, however, is who sells our lottery products.”
She said she has been working with lottery officials in Georgia and North Carolina on how to address the effects of Internet gaming on state-run lottery programs. In May, Bethea sent a letter to the state’s 3,700 ticket retailers to warn them that the agency could revoke or suspend their lottery license if they violate state laws.
“Please be aware that a machine can be determined to be illegal by a local judge even if cash or other items are not given in exchange for credits earned while playing the machine,” wrote Bethea. “You may wish to consult with an attorney or local or state law enforcement officials to assist you in determining which machines are appropriate under state law and which are not.”
In June the S.C. Attorney General’s office responded to a question from Beaufort County Sheriff P. J. Tanner. The county official was asking whether the owner of a Hilton Head Island restaurant could operate Sweepstakes Promotional electronic games by Products Direct, LLC.
The letter said the office was unable to say if a specific machine was illegal. But if police had probable cause that it was, then the machine should be seized and taken to the magistrate, who could decide on a machine-by-machine basis
Wednesday, August 24, 2011
NEW PULL TAB Phone Card Sweepstakes Machines
INTRODUCING New Pull Tab Phone Card Sweepstakes machines. These machines meet legal requirements for "finite" winnings and par sheets are available.
Features:
You insert money and immediately a phone card is printed which gives you pin codes for 15 minutes per dollar inserted. You insert $20 you get 300 minutes of phone card time.
You also get FREE credits to play the game
CGA Graphics
Video Pull Tab Game
Multi Denomination
Standard 36/10 Pin Cherry Master Harness Ready
6 Month Warranty
Machine includes 5,000 initial fifteen minute pincodes (75,000 minutes) and can be reloaded as needed
You insert money and immediately a phone card is printed which gives you pin codes for 15 minutes per dollar inserted. You insert $20 you get 300 minutes of phone card time.
You also get FREE credits to play the game
CGA Graphics
Video Pull Tab Game
Multi Denomination
Standard 36/10 Pin Cherry Master Harness Ready
6 Month Warranty
Machine includes 5,000 initial fifteen minute pincodes (75,000 minutes) and can be reloaded as needed
19" Multi Resolution LCD Display securely mounted in a high quality metal bezel
ICT GP-58CR Thermal Printer included
"PINTASTIC" Phone Pin Print Interface Board included
Includes Spinning 7's Video Pull Tab game board
Finite Based Board Sweepstakes Game
Custom Spinning 7's bezel graphic
Your choice of Pyramid 5400 Stacker Bill Validator or ICT A6 Stacker Bill Validator
Additional customization available. Call for more details
Estimated ship out time is 3-5 days
We will contact you with an email or phone confirmation to follow up with your online order
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