Tag Archives: sweepstakes law in nc

Sweepstakes in North Carolina

..Pre-Reveal Sweepstakes Games Win Case..

North Carolina – In a Eastern Carolina district court hearing a case about new ‘Pre Reveal” sweepstakes the trial came back with a not guilty verdict. Pre-Reveal-GoldAccording to District Attorney Ernie Lee, Gardner Payne was arrested September 5th and charged by the Duplin County Sheriff’s Office with six counts of gambling and six counts of video sweepstakes violations.

Payne was in charge of a Sweepstakes business on NC 41 in Wallace. On Wednesday Judge Henry Stevens found Payne not guilty of all 12 counts.

A law enforcement official said the state will continue to enforce the law and that many places that are still open are doing so by running ‘pre-reveal games’ HB147

NC HB-547 Waiting For Research To Conclude

 

The cafes offer pay as you go phone cards or Internet time that customers may make use of to play Web-based games.
Winning earns them more Internet time, in addition

to factors that allow them to win money in sweepstakes. The winners are predetermined.

Few regulations regulate the cafes’ activities. They do not experience the exact same examination– or pay the very same taxations and charges– as casinos or race tracks that have slots.

Pre-Reveal Sweepstakes

Pre-Reveal Sweepstakes

That seemed a ton like uncontrolled, illegal gambling to Ohio’s leading district attorney, Attorney General Mike DeWine, that made shutting the cafes an aim and intimated he was prepped to stand up for an outright restriction. A lot more lately, though, Mr. DeWine applauded a bill sponsored by state Rep. Matt Huffman (R., Lima) and passed by the House that is planned to regulate the businesses from presence.

Mr. Huffman’s initial bill narrowed the meaning of a sweepstakes to omit Internet cafes. The alternate bill takes an easier technique: It permits Web-based games at cafes, however removes the reward to play by banning money payouts and restricting some other rewards to a value of $ 10.

The bill was rushed by means of the House in the chance that the Senate will act on it before the legal session ends, undoubtedly this week. But the bill’s fortune in the Senate is unclear.

Us senate President Tom Niehaus (R., New Richmond) has claimed he has the tendency to favor regulation as opposed to a restriction. He was noncommittal concerning whether he would certainly assist new rules that basically restriction the cafes.

Internet cafes draw away cash from religions and fraternal groups that hold lawful gambling such as bingo, are stringently regulated, and ought to offer component of their proceeds to charity. The sweepstakes shops are usually in inadequate areas, purchased by Ohioans who are least able to manage to discard cash.

BISTRO owners argue that the games they run are no different from sweepstakes sponsored by business such as McDonalds. They keep in mind that individuals that acquire phone cards do not need to play the Internet games. They caution that as numerous as 5,000 listings would certainly be lost if they close.

Challengers state there is no way to track the money that moves by means of sweepstakes cafes, many of which are accused of making illegal money payouts. Police force authorities to point out storefront quasi-gambling operations that may entice criminal activity.

This month, Mr. DeWine informed a House committee hearing that improperly moderated Internet cafes could be utilized to rinse cash and are “ripe for organized crime.” The Ohio Fraternal Order of Police has warned that the gaming procedures could become fronts for sex trafficking and other unlawful activity.

Ohio voters did not promote a gambling house on every street corner when they accepted state constitutional changes to produce the Ohio Lottery, allow charitable bingo, and allow four full-fledged casinos with thousands of electronic slots to operate.

A ban on Internet cafes stays the preferable solution. But fatality by regulation is an okay alternative, deserving of Senate authorization.

Technology Outpaces Old Laws

..Sweepstakes Games Legality Again In Question After Court Decision..

RED SPRINGS, N.C.  — In a court ruling last month, some Internet sweepstakes operators would be allowed to reopen a  business in Scotland County, but Robeson County officials  are not yet sure if they will allow the new games to re-open in Red Springs.Pre-Reveal-Gold

A entrepreneur from North Carolina, Grace Outlaw wants to bring a gaming parlor to town, but town officials say opening a sweepstakes operation has not been cleared yet.

“My understanding from the district attorney and the Attorney General’s Office is that any sweepstakes operation is still against the law,” Red Springs Police Chief Ronnie Patterson claimed after a meeting with the gaming operator on Monday.

Patterson said he would check with city, county and state officials about whether Grace’s machines would be exempt from the ban on sweepstakes parlors and try to give her a definitive answer by Friday.

preRevealGrace opened Carolina Cyber Center on South Main Street on Leisure Road for a few weeks, after a District Court judge concluded the gaming  software used in her original business does not violate the ban on sweepstakes parlors that authorities began enforcing early last year after the state Supreme Court declared a 2010 ban on video gambling constitutional.

Grace and others in the sweepstakes  industry proclaim  that the state ban is key on the use of “an entertaining display or visual information, capable of being seen by a sweepstakes player that takes the form of actual game play.” The system is commonly referred to as “Pre Reveal Sweepstakes” since the prize is shown before the “entertainment display”

Grace’s machines uses the Pre Reveal software that reveals the winners in advance — a loophole that keeps those machines in compliance with the law, according to Grace and her attorneys (and the judge)

“They came in and said we were running an illegal operation, but the judge saw different,” said Robert Outlaw, who runs a business on Main Street. “We went to court and we won our case” Since the Supreme court declared that the 2010 law banning internet sweepstakes was constitutional the Pre Reveal sweepstakes software has won close to a dozen court cases.

All the charges were dismissed against customers who were playing at  Carolina Cyber Center and charged with illegal gambling when the business was closed by law enforcement earlier this year.

The PreReveal software used by Carolina Cyber Center prompts customers to click a reveal button when they begin their interaction with the machine. That button simply shows the user, without use of graphics such as a simulated roulette wheel, whether or not they have won. At that point, when the sweepstakes portion of the session has ended, users may then opt to see the game commonly referred to as the ‘entertainment display’

“A lot of gaming establishment stuck with the old system and that is why they have not reopened, but we went with the new software that shows you what you would win without going through a game,” Grace said. “The judge ruled that was all right.”

Outlaw said she would like to locate the gaming parlor in a vacant store near the Food Lion shopping center on Fourth Street in Red Springs. She also plans to locate a gaming business in Pembroke.

“I’m hoping that if our parlors are legal in Laurinburg, than they are legal everywhere,” she said.

Town officials said that if the new software make the businesses legal, then the parlors could once again be a a great source of revenue for the city. Before a ruling deemed sweepstakes games illegal, Red Springs welcomed the machines, collecting more than $100,000 in fees during a fiscal year.

 

Patterson goes on to say,  “We don’t care if the games come or not,” Patterson said. “But I have a feeling that we’re going to continue to enforce the ban (on entertainment displays) If we don’t, the SBI will be down here investigating why we are not doing our jobs.”

Games With Pre-Reveal Win Court Case, Again.

..Pre-Reveal Sweepstakes Games Win Case..

North Carolina – In a Eastern Carolina district court hearing a case about new ‘Pre Reveal” sweepstakes the trial came back with a not guilty verdict. Pre-Reveal-GoldAccording to District Attorney Ernie Lee, Gardner Payne was arrested September 5th and charged by the Duplin County Sheriff’s Office with six counts of gambling and six counts of video sweepstakes violations.

Payne was in charge of a Sweepstakes business on NC 41 in Wallace. On Wednesday Judge Henry Stevens found Payne not guilty of all 12 counts.

A law enforcement official said the state will continue to enforce the law and that many places that are still open are doing so by running ‘pre-reveal games’ HB147

Courts Decision On New Games Include An Injunction

..Pre-Reveal Sweepstakes..
A superior court order in Eastern North Carolina allows a gambling machine operator to expand business across Buncombe County.
According to the ruling, machines are legal because it requires skills and dexterity for a win and also show the pre-reveal format.Pre-Reveal-Gold
The Superior Court Judge has ruled that these sweepstakes machines are  legitimate. The ruling also prohibits the sheriff of Onslow County to seize the machines and arrest the operators.
“We have always maintained that our games are legitimate and were compliant with the state law/” Says Casey Rooks of Pre-Reveal Sweepstakes.
Rooks also stated that the PreReveal marketing strategy fits the same strategy other sweepstakes café uses to promote their businesses. The business model has won a score of legal battles for sweepstakes operators resulting to dismissal of criminal charges.
Back in 2007, the state banned all games of pure chance and even put Buncombe County Sheriff Bobby Medford behind bars for accepting bribes from gambling lords.
In 2010, state lawmakers have passed a general statute 14-306.4 allowing sweepstakes while banning video poker, craps, keno, and lotto.
However, a compact between the state and the Cherokee Tribe made the state leave a component in the statute to allow games of skills and dexterity.

Game Operators in North Carolina Want Regulation

..Superior court ruling allow ‘preReveal” sweepstakes to expand..
A superior court order in Eastern North Carolina allows a gambling machine operator to expand business across Buncombe County.
According to the ruling, machines are legal because it requires skills and dexterity for a win and also show the pre-reveal format.Pre-Reveal-Gold
The Superior Court Judge has ruled that these sweepstakes machines are  legitimate. The ruling also prohibits the sheriff of Onslow County to seize the machines and arrest the operators.
“We have always maintained that our games are legitimate and were compliant with the state law/” Says Casey Rooks of Pre-Reveal Sweepstakes.
Rooks also stated that the PreReveal marketing strategy fits the same strategy other sweepstakes café uses to promote their businesses. The business model has won a score of legal battles for sweepstakes operators resulting to dismissal of criminal charges.
Back in 2007, the state banned all games of pure chance and even put Buncombe County Sheriff Bobby Medford behind bars for accepting bribes from gambling lords.
In 2010, state lawmakers have passed a general statute 14-306.4 allowing sweepstakes while banning video poker, craps, keno, and lotto.
However, a compact between the state and the Cherokee Tribe made the state leave a component in the statute to allow games of skills and dexterity.

Law Enforcement Raid SC Gaming Provider Gateway / Frontier

Other Arrest Are Pending.

Piedmont, SC – Two individuals were charged at a Piedmont gaming store that federal agents claimed was a storage facility for gambling equipment, according to federal officials. Charged were, Bobby Moseley Sr. and Jerome Michael Caldwell, with one count of operating an illegal gambling business and one count of money laundering, according to the indictment.

According to the indictment, the Secret Service seized $242 million in property and real estate and $144 million used in money laundering. The indictment also noted that all weapons were removed from their home.  Agents with the Internal Revenue Service and the Secret Service raided the store on Kiawa Lane on Wednesday, according to a source with the Secret Service.

What prompted the raid or what authorities are looking for is not known but FOX Carolina crews said they could count numerous sweepstakes machines outside the business and even more inside.

A neighboring business owner said agents had been out at the business for several hours. Moseley and Caldwell were both given $100,000 bond at their hearing. The judge said they must also surrender their passports and they may not leave South Carolina.

Gateway Systems, LLC, Gateway Gaming, LLC, Frontier Software Systems, LLC and Frontier Gaming, Inc. were named in the indictment.

Another Legal Decision Expected Soon In New Sweepstakes Games Debate

New Games Have Made Enforcement Cloudy

 
WILMINGTON – Both parties involved on sweepstakes ban will be back in the courtroom on Thursday for an evidence hearing. Pre-Reveal-Gold
Earlier this year, law enforcement has conducted a bust on Jimmy Gerodemos’ Louis G. Enterprises and Capitol One Reward Zones on Market Street for violating the states gambling laws. Authorities have seized a total of $2,500 cash and 50 terminal computers.
Back in August 21, Attorney Tommy Hicks who represents Gerodemos, has filed a lawsuit against the New Hanover County Sheriff’s Office together with the District’s Attorney’s Office.
The lawsuit has named the New Hanover County’s insurance company, the New Hanover County with Sheriff Ed McMahon and District Attorney Ben David as defendants.
The case is supposed to start on Monday, however Hicks requested for more time saying one of the defendants, an insurance company for New Hanover County has not responded yet.
Judge Gale Adams has granted the request and moved the hearing on Thursday at 9:30am.

Pre Reveal Sweepstakes Games Replace Old Internet Cafe Games Throughout Florida

DAYTONA BEACH – There wasn’t a lot of support from the public  when Govenor Rick Scott signed a bill into law banning Internet cafés.

Now, A new different version called “preReveal” are mustering their way back into the once closed internet cafes.

There’s a internet cafe called Pete’s retreat VII. The owner said he opened five already in Jacksonville and other owners have said they use the same pre-reveal software.

Internet café software providers  found a new way around the law which banned these cafés in April, everyone should expect to see more of these open up in a neighborhood near you.Pre-Reveal-Gold

Miller said the old slot-like  machines with rolling cherries and other graphics have been replaced, also gone are the wagers with cash winnings and the removal of chance.

“Before you reveal your first number of entries, it tells you what you’re going to win or lose. It tells you what you’re going to win or lose, whatever the case may be before you even touch the machine,” Miller said. That’s where the term “PreReveal” comes from.

What’s important to players who used the previous outlawed Internet cafés the prereveal sweepstakes games seem to have not change the feel of the game.

“I think the maximum amount would be about $3,500 in one particular game,” Miller said of the amount a player can win. “You need the element of chance and we no longer have the element of chance.”

Employees Pete’s Retreat say someone from Daytona beach code enforcement came by Monday to check their permits. The Pre-Reveal games seem to be compliant with the code.

The Difference In Compliant Games And Non-Compliant Games In NC ?

HIGH POINT – A man was charged after cops conducted a search warrant in a sweepstakes shop in High Point on Thursday afternoon.

NC PREREVEAL GIF 2The alleged, James Lindsay Matthews, age 59, of 4522 Abbot Loop Road in Jamestown was accounted for possession of more than five sweepstakes machines and felony for possession of cannabis or dope.
According to Highpoint investigators, they seized 49 sweepstakes machines during a sweep in Skylar Mayes located at 2219 S. Main Street. Along with the machines, $7,209 of cash, 2.9 grams of weeds, computer surveillance equipment and three televisions were also confiscated.
Matthews was given a promissory note to show up in court for the charges.