5/19/2010
ROANOKE RAPIDS — Roanoke Rapids City Council honored one of their former members and moved forward on regulations regarding Internet cafes in the city Tuesday night during the Council’s regular meeting at Lloyd Andrews City Meeting Hall.
The new ordinance goes on to restrict locations — must be 500 feet minimum distance from any residence or residential zoning district, 1,000 feet minimum distance from a church, day care center, elementary school or secondary educational school, public park or playground, public library, cemetery, video arcade, or cinema showing G or PG-rated movies regularly. The 1,000-foot minimum distance also applies to other Electronic Gaming Operations, tattoo or piercing establishments, or sexually-oriented businesses.The new regulations limit the number of machines for each establishment at 20, and no alcohol may be served or consumed on the premises. Read entire story
Wednesday, May 19, 2010
Lawmaker told video poker could net $576M for North Carolina
5/21/2010
RALEIGH, N.C. — The North Carolina Education Lottery says the state could one day generate $576 million annually if lawmakers legalize video poker machines again and regulate them heavily. The lottery released on Wednesday its analysis for a state senator who sought information on state revenues that could originate from casino-style video gambling games.
Read entire story
RALEIGH, N.C. — The North Carolina Education Lottery says the state could one day generate $576 million annually if lawmakers legalize video poker machines again and regulate them heavily. The lottery released on Wednesday its analysis for a state senator who sought information on state revenues that could originate from casino-style video gambling games.
Read entire story
North Carolina Town looks at sweepstake machine fees
May 19, 2010
The Town of Black Mountain is considering a fee on sweepstakes machines, video terminals on which participants can play poker, blackjack, and other games traditionally associated with gambling. Read story
The Town of Black Mountain is considering a fee on sweepstakes machines, video terminals on which participants can play poker, blackjack, and other games traditionally associated with gambling. Read story
North CarolinaLawmakers Could Consider Legalizing Video Poker Machines
5/20/2010
The North Carolina Education Lottery says the state could one day generate $576 million annually if lawmakers legalize video poker machines again and regulate them heavily. The lottery released its analysis yesterday. Read entire story
The North Carolina Education Lottery says the state could one day generate $576 million annually if lawmakers legalize video poker machines again and regulate them heavily. The lottery released its analysis yesterday. Read entire story
Wednesday, April 21, 2010
Gaming case going to court
By Sharon McBrayer The News Herald
Published: April 18, 2010
MORGANTON - A Superior Court judge on Monday will hear a complaint filed against local law enforcement officers, the district attorney and the state of North Carolina.
Thirteen Burke County businesses want the court to issue a preliminary injunction that prohibits police, the sheriff's office and the DA from interfering with the businesses for using, operating and promoting their marketing of telephone time through video sweepstakes
The complaint also asks the court, after a full hearing, to declare the games are "not prohibited gambling, lottery or gaming products."
Burke County sheriff's officers and municipal police on March 12 pulled the plugs, literally, on machines that offer Internet sweepstakes and other games they say violate North Carolina's gambling laws. The lawmen ordered 56 businesses to get rid of their Internet sweepstakes machines and video gaming equipment by March 26.
The plaintiffs, who filed the request for an injunction on March 26, are Larry Walker doing business as The New Salem General Store; Chad Earp dba Tobacco Barn No. 1; A.J. Aykumar dba Brendle Town Grocery; Jerry's Neighborhood Store; By Pass Beverage; JT Group Inc.; Gregory Allen dba G.A. Amusements; Tamela Cook dba Pearson's Toy Trains; Jeff Whisnant dba Country Cousins; Quick Mart No. 1; Shop & Save No. 4; Archie Bradshaw dba Bradshaw Salvage & produce; and Linda Simmons doing business as Linda New Image.
Superior Court Judge Beverly Beal will hear the complaint in Courtroom No. 1 at the Burke County Courthouse. Court starts at 9 a.m., according to officials. Beal said he likely will hear the complaint during the morning session of Superior Court.
Beal noted that the town of Valdese also filed a motion to dismiss the complaint.
Beal said whatever happens with the hearing will likely result in a preliminary action.
However, the decision on the motion to dismiss could be a permanent one.
Valdese Town Attorney Marc Mitchell filed the town's motion April 9. He said the businesses' complaint wasn't served by the sheriff or other authorized person; wasn't served on the proper person to obtain jurisdiction over the town; and that the town police department is not an entity which can be sued in the action.
Valdese Police Chief John Suttle said he was served with the complaint by the sheriff's office on Thursday.
In addition to Valdese's police department, the businesses' complaint names district attorney Jay Gaither, Burke Sheriff John T. McDevitt and the Morganton and Drexel police departments.
Victor Yamouti of Morganton and Kelly Daughtry of Daughtry Woodard Lawrence & Starling in Smithfield are representing the businesses.
Steve Settlemyer, city attorney for Morganton, said to his knowledge the city had not been served with the complaint and he hasn't seen it.
County Attorney Redmond Dill said on Friday that he hasn't filed any motions regarding the case. He said there is already an injunction in Guilford County and he will let the court decide whatever it wants to decide.
In March, Superior Court Judge John O. Craig in Guilford County, responding to an appeal from Hest Technologies and International Internet Technologies, ordered McDevitt and other law enforcers in Burke County to "cease and desist from any efforts to seize equipment or property" belonging to the two companies. Craig's injunction also prevents local law enforcement officers from filing any criminal charges against anyone using the Hest and IIT software systems.
Amending an injunction he originally imposed in May 2009, Craig's revised order adds McDevitt's name to those of other N.C. law enforcement agencies. It also clarifies who has to comply with the original injunction; that is, any law enforcer, as well as any prosecutor, acting on behalf of the state
Published: April 18, 2010
MORGANTON - A Superior Court judge on Monday will hear a complaint filed against local law enforcement officers, the district attorney and the state of North Carolina.
Thirteen Burke County businesses want the court to issue a preliminary injunction that prohibits police, the sheriff's office and the DA from interfering with the businesses for using, operating and promoting their marketing of telephone time through video sweepstakes
The complaint also asks the court, after a full hearing, to declare the games are "not prohibited gambling, lottery or gaming products."
Burke County sheriff's officers and municipal police on March 12 pulled the plugs, literally, on machines that offer Internet sweepstakes and other games they say violate North Carolina's gambling laws. The lawmen ordered 56 businesses to get rid of their Internet sweepstakes machines and video gaming equipment by March 26.
The plaintiffs, who filed the request for an injunction on March 26, are Larry Walker doing business as The New Salem General Store; Chad Earp dba Tobacco Barn No. 1; A.J. Aykumar dba Brendle Town Grocery; Jerry's Neighborhood Store; By Pass Beverage; JT Group Inc.; Gregory Allen dba G.A. Amusements; Tamela Cook dba Pearson's Toy Trains; Jeff Whisnant dba Country Cousins; Quick Mart No. 1; Shop & Save No. 4; Archie Bradshaw dba Bradshaw Salvage & produce; and Linda Simmons doing business as Linda New Image.
Superior Court Judge Beverly Beal will hear the complaint in Courtroom No. 1 at the Burke County Courthouse. Court starts at 9 a.m., according to officials. Beal said he likely will hear the complaint during the morning session of Superior Court.
Beal noted that the town of Valdese also filed a motion to dismiss the complaint.
Beal said whatever happens with the hearing will likely result in a preliminary action.
However, the decision on the motion to dismiss could be a permanent one.
Valdese Town Attorney Marc Mitchell filed the town's motion April 9. He said the businesses' complaint wasn't served by the sheriff or other authorized person; wasn't served on the proper person to obtain jurisdiction over the town; and that the town police department is not an entity which can be sued in the action.
Valdese Police Chief John Suttle said he was served with the complaint by the sheriff's office on Thursday.
In addition to Valdese's police department, the businesses' complaint names district attorney Jay Gaither, Burke Sheriff John T. McDevitt and the Morganton and Drexel police departments.
Victor Yamouti of Morganton and Kelly Daughtry of Daughtry Woodard Lawrence & Starling in Smithfield are representing the businesses.
Steve Settlemyer, city attorney for Morganton, said to his knowledge the city had not been served with the complaint and he hasn't seen it.
County Attorney Redmond Dill said on Friday that he hasn't filed any motions regarding the case. He said there is already an injunction in Guilford County and he will let the court decide whatever it wants to decide.
In March, Superior Court Judge John O. Craig in Guilford County, responding to an appeal from Hest Technologies and International Internet Technologies, ordered McDevitt and other law enforcers in Burke County to "cease and desist from any efforts to seize equipment or property" belonging to the two companies. Craig's injunction also prevents local law enforcement officers from filing any criminal charges against anyone using the Hest and IIT software systems.
Amending an injunction he originally imposed in May 2009, Craig's revised order adds McDevitt's name to those of other N.C. law enforcement agencies. It also clarifies who has to comply with the original injunction; that is, any law enforcer, as well as any prosecutor, acting on behalf of the state
Wednesday, March 24, 2010
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.
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.
North Carolina Police Shut 56 Sweepstakes Gamerooms
3/24/2010 Marcus Webb
BURKE COUNTY, NC -- Police here shut down 56 Internet sweepstakes gamerooms in the towns of Morganton, Valdese, Drexel and Glen Alpine during the week of March 14-19. Sheriffs and deputies in several local jurisdictions within the county, working together, disabled more than 250 Internet terminals and videogames.
The operators -- some admitting to making cash payouts to winners -- were told they have until March 26 to dispose of the machines.
Various North Carolina district courts have ruled that sweepstakes games are legal under state law, assenting to the argument that a sweepstakes on an Internet terminal is -- in theory and in law -- no different from a similar promotion at fast food restaurants. In 2009, a Superior Court judge in Wake County, NC, prohibited raids on sweepstakes parlors until the pertinent law was clarified.
Nevertheless, numerous police and city councils find sweepstakes machines objectionable. Burke County Sheriff John McDevitt said police were "taking a leap of faith" and were willing to "interpret" the law for themselves. Slot machines, games of chance with cash payoffs, and video poker games (even if operated for amusement only) are illegal in North Carolina.
In a typical online sweepstakes gameroom, customers spend $1 to $5 to buy time on the networked computers or credits on videogames, or purchase sweepstakes tickets. They can then play slot-style games. Read more about North Carolina sweepstakes games.
But promoters of these contests sometimes argue that the a game's outcome is predetermined by the sweepstakes entry, and is not arrived in real time by the random operation of any poker, slot or blackjack software program that the customer happens to enjoy. This distinction means the game is a legal sweepstakes, not an illegal slot machine, operators say.
Following the Burke County raid, the sheriff of Catawba County, David Huffman, said that he would like to shut down Internet sweepstakes gamerooms there, too, and that he believes cash payoffs on the machines are illegal. But Huffman is refraining for now. Officials in other counties such as Shelby and New Hanover also want to shut down Internet sweepstakes game rooms but say they have not yet found a legal means to do so.
Rep. Ray Warren (D-Alexander and Catawba counties) has cosponsored a bill to ban online sweepstakes games. Warren said he didn't know when the bill could come up for committee markup or floor debate.
Earlier attempts to regulate the machines by lawmakers in Raleigh have failed due to the legal conundrum described above. Some lawmakers say they can't figure out how to outlaw sweepstakes games without also banning long-established McDonald's-style prize promotions.
BURKE COUNTY, NC -- Police here shut down 56 Internet sweepstakes gamerooms in the towns of Morganton, Valdese, Drexel and Glen Alpine during the week of March 14-19. Sheriffs and deputies in several local jurisdictions within the county, working together, disabled more than 250 Internet terminals and videogames.
The operators -- some admitting to making cash payouts to winners -- were told they have until March 26 to dispose of the machines.
Various North Carolina district courts have ruled that sweepstakes games are legal under state law, assenting to the argument that a sweepstakes on an Internet terminal is -- in theory and in law -- no different from a similar promotion at fast food restaurants. In 2009, a Superior Court judge in Wake County, NC, prohibited raids on sweepstakes parlors until the pertinent law was clarified.
Nevertheless, numerous police and city councils find sweepstakes machines objectionable. Burke County Sheriff John McDevitt said police were "taking a leap of faith" and were willing to "interpret" the law for themselves. Slot machines, games of chance with cash payoffs, and video poker games (even if operated for amusement only) are illegal in North Carolina.
In a typical online sweepstakes gameroom, customers spend $1 to $5 to buy time on the networked computers or credits on videogames, or purchase sweepstakes tickets. They can then play slot-style games. Read more about North Carolina sweepstakes games.
But promoters of these contests sometimes argue that the a game's outcome is predetermined by the sweepstakes entry, and is not arrived in real time by the random operation of any poker, slot or blackjack software program that the customer happens to enjoy. This distinction means the game is a legal sweepstakes, not an illegal slot machine, operators say.
Following the Burke County raid, the sheriff of Catawba County, David Huffman, said that he would like to shut down Internet sweepstakes gamerooms there, too, and that he believes cash payoffs on the machines are illegal. But Huffman is refraining for now. Officials in other counties such as Shelby and New Hanover also want to shut down Internet sweepstakes game rooms but say they have not yet found a legal means to do so.
Rep. Ray Warren (D-Alexander and Catawba counties) has cosponsored a bill to ban online sweepstakes games. Warren said he didn't know when the bill could come up for committee markup or floor debate.
Earlier attempts to regulate the machines by lawmakers in Raleigh have failed due to the legal conundrum described above. Some lawmakers say they can't figure out how to outlaw sweepstakes games without also banning long-established McDonald's-style prize promotions.
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