“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
Wednesday, September 28, 2011
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
Sunday, December 12, 2010
North Carolina Sweepstakes Operators Scramble to stay open
The video sweepstakes ban attempts to outlaw games in which people purchase a service, such as Internet access or telephone calling card minutes, and in the process enter a gambling-style sweepstakes game played on a computer screen. Customers usually focus on the gambling and winning money, and rarely pay attention to the service they have purchased.
Since Dec. 1, the Lucky Charm Internet Cafe on Hope Mills Road closed temporarily to install new games, said owner Ann Drabek.
Where the cafe once had about 10 "pot-of-gold" machines and 12 Internet terminals, it now has just the 12 terminals. The new games on the terminals have changed their rules and use less flashy graphics.
The constitutional section of the law bans sweepstakes video games that resemble popular gambling games, such as card games, bingo, keno and slot machines. Other games that involve the random or chance matching of two or more words, pictures or other symbols also are illegal.
The new games got a mixed reception from players. One woman, so shy about her playing that she took a seat away from the store windows, said she likes the simplicity of the new games. Whereas the games used to require her to play cards or to match several pictures to win, now she wins when just one picture of a lucky horse shoe or elf's pipe appears on the screen.
"It's nice, because I didn't know how to play cards anyway," said the woman, who declined to be identified.
But Chris Edge of Fayetteville misses the old games.
"It's not as much fun as it was before," he said. New games feel slower and have less excitement, he added.
Drabek, the owner, re-opened the cafe Tuesday. She estimates her business is down 50 percent compared to before Dec. 1.
The Sheriff's Office is handling enforcement of the law in the county, plus Hope Mills, Spring Lake, Eastover and Stedman, said spokeswoman Debbie Tanna. The department will investigate complaints, she said, and was visiting the cafes to monitor their compliance. But the Sheriff's Office has since stopped while it waits for the courts to rule on the ban's constitutionality.
"We will not start visiting again until the law is defined," Tanna said.
Butler made this decision in consultation with other sheriffs, Tanna said.
"When they are ready to move on this law, they will do so as a group," she said.
Since Dec. 1, the Lucky Charm Internet Cafe on Hope Mills Road closed temporarily to install new games, said owner Ann Drabek.
Where the cafe once had about 10 "pot-of-gold" machines and 12 Internet terminals, it now has just the 12 terminals. The new games on the terminals have changed their rules and use less flashy graphics.
The constitutional section of the law bans sweepstakes video games that resemble popular gambling games, such as card games, bingo, keno and slot machines. Other games that involve the random or chance matching of two or more words, pictures or other symbols also are illegal.
The new games got a mixed reception from players. One woman, so shy about her playing that she took a seat away from the store windows, said she likes the simplicity of the new games. Whereas the games used to require her to play cards or to match several pictures to win, now she wins when just one picture of a lucky horse shoe or elf's pipe appears on the screen.
"It's nice, because I didn't know how to play cards anyway," said the woman, who declined to be identified.
But Chris Edge of Fayetteville misses the old games.
"It's not as much fun as it was before," he said. New games feel slower and have less excitement, he added.
Drabek, the owner, re-opened the cafe Tuesday. She estimates her business is down 50 percent compared to before Dec. 1.
The Sheriff's Office is handling enforcement of the law in the county, plus Hope Mills, Spring Lake, Eastover and Stedman, said spokeswoman Debbie Tanna. The department will investigate complaints, she said, and was visiting the cafes to monitor their compliance. But the Sheriff's Office has since stopped while it waits for the courts to rule on the ban's constitutionality.
"We will not start visiting again until the law is defined," Tanna said.
Butler made this decision in consultation with other sheriffs, Tanna said.
"When they are ready to move on this law, they will do so as a group," she said.
Thursday, October 28, 2010
Video Gaming Company drops Lawsuit Against Morgantown
Morganton --
The two software companies who sued the city of Morganton because of the business license fee it charges Internet sweepstakes cafes have dismissed the lawsuit. Attorneys for the two companies requested a voluntary dismissal of the lawsuit. They asked the court to do so “without prejudice,” which means they could re-file the lawsuit within the next 12 months.Meanwhile, lawyers for both sides are watching a separate lawsuit filed last month in Cumberland County Superior Court by 13 Internet cafe owners in Fayetteville who are fighting the license fees on constitutional and other grounds.International Internet Technologies and Hest Technologies filed suit in early August against Morganton, Fayetteville, Lumberton, Pembroke and Wilmington. The lawsuit alleged the cities’ business license fee, or privilege license, violates the federal Internet Tax Freedom Act. The act prevents local and state governments from taxing Internet access.The lawsuit ended up in business court before Judge Ben F. Tennille.The cities named in the lawsuit contended that because the two software companies weren’t paying the privilege fees — the fees only apply to local business operators — they didn’t have a dog in the fight, said Steve Settlemyer, attorney for the city of Morganton. Settlemyer also said he doesn’t believe the Internet Tax Freedom Act applies to privilege licenses. During depositions taken in the case, he pointed out, lawyers for the companies said people don’t have to go on the Internet to reveal a sweepstakes win and that the games are a local server-based program. The city has spent around $8,000 so far to retain an attorney who regularly practices in business court to fight the lawsuit, Settlemyer said. The Kilpatrick Stockton law firm in Winston-Salem represented IIT. Attorney Richard Gottlieb said the company decided to dismiss the lawsuit because of the similar suit filed against the city of Fayetteville. He said it made more sense to his clients and was more efficient to allow the Fayetteville case to proceed and then consider their options. Gottlieb said IIT is not a party to the lawsuit against Fayetteville. According to the Fayetteville Observer, the Cumberland County Superior Court judge in that case granted a preliminary injunction to block the city’s ability to collect the fees from those owners until the case is settled, either by trial or out of court. Gottlieb and Settlemyer both said they want to see how that lawsuit is resolved.In the meantime, Settlemyer said, Internet sweepstakes gaming operators have to pay the privilege license in Morganton. Settlemyer said that of the 17 operating in the city in the spring, 10 paid Morganton’s privilege license, three got rid of their machines and one closed up shop. Two have yet to pay the fee, he continued. The combined total due is $58,050. The Morganton City Council voted in May to require businesses who offer video gaming to pay for a privilege license. It costs $2,000 per business and $1,500 per machine (city staff originally proposed $2,000 and $2,500). City officials projected the 2010-11 municipal budget would get $125,000 for the Internet sweepstakes cafe privilege license. Settlemyer said that if the two businesses don’t pay the privilege license fee, the city could file a lawsuit to collect the money or the city could get a court order to close down the businesses. Those offering the Internet sweepstakes gaming say they provide a way for people to access the Internet for e-mail, social networking, entertainment and religious purposes. They say they use the sweepstakes to promote their business. Opponents say the operators — whether they call themselves Internet cafes, business centers or something else — are nothing more than gambling parlors.The North Carolina General Assembly voted on July 7 to outlaw the electronic sweepstakes gaming. The law is scheduled to take effect Dec. 1. Gottlieb said he and his clients believe the law the General Assembly passed is unconstitutional because it infringes on the First Amendment right of free speech and, specifically, on the way the sweepstakes can be played and displayed.
The two software companies who sued the city of Morganton because of the business license fee it charges Internet sweepstakes cafes have dismissed the lawsuit. Attorneys for the two companies requested a voluntary dismissal of the lawsuit. They asked the court to do so “without prejudice,” which means they could re-file the lawsuit within the next 12 months.Meanwhile, lawyers for both sides are watching a separate lawsuit filed last month in Cumberland County Superior Court by 13 Internet cafe owners in Fayetteville who are fighting the license fees on constitutional and other grounds.International Internet Technologies and Hest Technologies filed suit in early August against Morganton, Fayetteville, Lumberton, Pembroke and Wilmington. The lawsuit alleged the cities’ business license fee, or privilege license, violates the federal Internet Tax Freedom Act. The act prevents local and state governments from taxing Internet access.The lawsuit ended up in business court before Judge Ben F. Tennille.The cities named in the lawsuit contended that because the two software companies weren’t paying the privilege fees — the fees only apply to local business operators — they didn’t have a dog in the fight, said Steve Settlemyer, attorney for the city of Morganton. Settlemyer also said he doesn’t believe the Internet Tax Freedom Act applies to privilege licenses. During depositions taken in the case, he pointed out, lawyers for the companies said people don’t have to go on the Internet to reveal a sweepstakes win and that the games are a local server-based program. The city has spent around $8,000 so far to retain an attorney who regularly practices in business court to fight the lawsuit, Settlemyer said. The Kilpatrick Stockton law firm in Winston-Salem represented IIT. Attorney Richard Gottlieb said the company decided to dismiss the lawsuit because of the similar suit filed against the city of Fayetteville. He said it made more sense to his clients and was more efficient to allow the Fayetteville case to proceed and then consider their options. Gottlieb said IIT is not a party to the lawsuit against Fayetteville. According to the Fayetteville Observer, the Cumberland County Superior Court judge in that case granted a preliminary injunction to block the city’s ability to collect the fees from those owners until the case is settled, either by trial or out of court. Gottlieb and Settlemyer both said they want to see how that lawsuit is resolved.In the meantime, Settlemyer said, Internet sweepstakes gaming operators have to pay the privilege license in Morganton. Settlemyer said that of the 17 operating in the city in the spring, 10 paid Morganton’s privilege license, three got rid of their machines and one closed up shop. Two have yet to pay the fee, he continued. The combined total due is $58,050. The Morganton City Council voted in May to require businesses who offer video gaming to pay for a privilege license. It costs $2,000 per business and $1,500 per machine (city staff originally proposed $2,000 and $2,500). City officials projected the 2010-11 municipal budget would get $125,000 for the Internet sweepstakes cafe privilege license. Settlemyer said that if the two businesses don’t pay the privilege license fee, the city could file a lawsuit to collect the money or the city could get a court order to close down the businesses. Those offering the Internet sweepstakes gaming say they provide a way for people to access the Internet for e-mail, social networking, entertainment and religious purposes. They say they use the sweepstakes to promote their business. Opponents say the operators — whether they call themselves Internet cafes, business centers or something else — are nothing more than gambling parlors.The North Carolina General Assembly voted on July 7 to outlaw the electronic sweepstakes gaming. The law is scheduled to take effect Dec. 1. Gottlieb said he and his clients believe the law the General Assembly passed is unconstitutional because it infringes on the First Amendment right of free speech and, specifically, on the way the sweepstakes can be played and displayed.
Thursday, July 8, 2010
N.C. House expected to vote to close video gambling loophole
THE FAYETTEVILLE OBSERVER 08:16 AM, Wed Jul 07, 2010
North Carolina lawmakers are poised to try again to kill the state's burgeoning video sweepstakes gambling industry. The House of Representatives is scheduled to vote today on a bill to ban the gambling games, which are played in lounges and other locations throughout the state. The ban previously passed the state Senate by a vote of 47-1. Gambling industry lobbyist Brad Crone expects the ban to pass despite the industry's request that it be allowed to stay in business and be taxed and regulated. The ban would take effect Dec. 1.
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North Carolina lawmakers are poised to try again to kill the state's burgeoning video sweepstakes gambling industry. The House of Representatives is scheduled to vote today on a bill to ban the gambling games, which are played in lounges and other locations throughout the state. The ban previously passed the state Senate by a vote of 47-1. Gambling industry lobbyist Brad Crone expects the ban to pass despite the industry's request that it be allowed to stay in business and be taxed and regulated. The ban would take effect Dec. 1.
Read More
Sunday, July 4, 2010
Wednesday, June 2, 2010
City Capital Adds Three More Gaming Centers to Clean Sweeps Family
RALEIGH, NC--(Marketwire - June 1, 2010) - City Capital Corporation (PINKSHEETS: CTCC) today announced that its sweepstakes gaming subsidiary Clean Sweeps Holdings, LLC has now further expanded into the state of North Carolina with the addition of three sweepstakes gaming center locations. The three gaming centers currently operating Clean Sweeps hardware and software are located in the municipalities of Rolesville, Walnut Cove, and Kernersville. The locations represent approximately seventy additional Clean Sweeps terminals in operation, or under Clean Sweeps management.
Ephren Taylor, Chief Executive Officer of City Capital Corporation, stated, "In 2009 we laid out an aggressive plan to roll out thousands of our terminals into concentrated areas, these three locations represent the tip of our expansion into the Southeast. We look forward to adding new locations running our systems every month as we continue to grow this division."
Clean Sweep Holdings' games allow players to win cash or other prizes at terminals located in shopping centers and kiosks. The games attract players of all types, diversifying the clientele that frequent retail business entities. Comparable to the McDonald's Monopoly gaming concept, Sweepstakes Income games are 100% legal, yet they offer far more feasible probabilities for achieving victory. And perhaps more significantly, owners of Sweepstakes gaming machines regularly experience significant, rapid revenue generation that is simplistically sustainable.
read entire story
Ephren Taylor, Chief Executive Officer of City Capital Corporation, stated, "In 2009 we laid out an aggressive plan to roll out thousands of our terminals into concentrated areas, these three locations represent the tip of our expansion into the Southeast. We look forward to adding new locations running our systems every month as we continue to grow this division."
Clean Sweep Holdings' games allow players to win cash or other prizes at terminals located in shopping centers and kiosks. The games attract players of all types, diversifying the clientele that frequent retail business entities. Comparable to the McDonald's Monopoly gaming concept, Sweepstakes Income games are 100% legal, yet they offer far more feasible probabilities for achieving victory. And perhaps more significantly, owners of Sweepstakes gaming machines regularly experience significant, rapid revenue generation that is simplistically sustainable.
read entire story
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