Internet Sweepstakes
Internet sweepstakes companies may be in real trouble. A recent law has been passed in North Carolina that bans video sweepstakes machines. The ban came into effect the first week of December. A great number of outlets around the state are already closed as a result.
Critics claim that these so called Internet sweepstakes games are really casino styled games. These gambling parlors are not all giving up and accepting the ban that went into effect on Wednesday, December 1st. Some of them are choosing to change their games to comply with the ruling. Their basis for resiting the ruling at all lies in one judge's recent ruling. He found that some of the Internet sweepstakes ban proves to be too broad. As such, it interferes with the free speech rights that people enjoy in playing such games.
Still other court rulings have not been sufficient to strike down this ruling. Two different trial courts have heard the arguments on why the law is unfair and chosen to allow the ban on all computer and electronic forms of sweepstakes machines to stand in North Carolina. This means that any online and electronic based games in North Carolina that give a feeling or appearance of casino games like video poker must be unplugged by Wednesday December 1st.
Monday, a lawsuit was dismissed by a Wake County Superior Court Judge named Paul Ridgeway. The suit had been brought by one amusement machine company. The judge left the July law that the North Carolina General Assembly passed on the books. The same week, a judge in Guillford County claimed that a portion of the law is simply too broad. The lawmakers had made the case that such games were actually illegal gambling. It did not not matter that customers purchase phone time, Internet time, or office services before they were permitted to play a computer based game that gives out possible prizes on a monitor.
Appeals to the law likely lie ahead. This has created confusion for police officers and law enforcement officials around North Carolina. State gambling officials as well as local police are supposed to begin enforcing this law this next week, even though there is no consensus on how the law will be enforced.
An advisory letter has been sent out by the office of state Attorney General Roy Cooper. It is supposed to help clear up the confusion for law enforcement officials who are required to seize these now illegal machines. The letter also gives the vendors of such machines and operators of the sweepstakes parlors the information on what is legal and how they might side step the law.
These operators of sweepstakes maintain that their game machines are for entertainment purposes and not gambling at all. Since consumers who come into the convenience stores or other places where they are located have to purchase a product or service in order to be able to play, they say that this is not gambling. The computer screens offer prizes and cash via mouse clicks.
Other states' Internet sweepstakes operators and game machine distributors are watching the proceedings in North Carolina closely. They know that a number of other states will use the precedent in North Carolina to follow suit. Because of this, even companies with such machines that are not based in North Carolina will likely wish to help out with the court case appeals.
About the Author
Aaron M. Kelly is an attorney based in Scottsdale, AZ that focuses on Internet Law, Business Law, and Bankruptcy. Aaron is an experienced bankruptcy lawyer and regularly speaks on topics involving Internet law.
Comments
