Banned in 2010.
Ban reaffirmed by the N.C. Supreme Court in 2012.
And still in business.
Despite the best efforts of state legislators and Supreme Court justices, many sweepstakes parlors are rolling along without much trouble. Thursday, The Free Press visited five locations in Lenoir County, and all but one are still in operation.
Good Times on U.S. 70, H&H Internet Sweepstakes on N.C. 11/55, Jackson Heights Sweepstakes on N.C. 11 and Neuse Internet Café on West Vernon Avenue continue on through a version of sweepstakes software proponents say complies with the law.
Called “pre-reveal,” the software allows a sweepstakes player to know the payout amount from the game before playing it, instead of showing the prize at the end.
“Well, we changed over our software in the first of January,” said James Mooring of Jackson Heights Sweepstakes. “You go to one of our screens, you can see the rules, you can see when you hit reveal the instant winnings.”
Some localities in North Carolina have raided sweepstakes locations, though largely concentrating on establishments operating games that clearly violate the law. The Carteret County Sheriff’s Office is on record saying “pre-reveal” is as illegal as previous versions of sweepstakes software. But each locality looks at the situation differently.
“We are sitting in limbo because we still do not know or have any clear instruction as to whether the pre-reveal software is, in fact, illegal,” Lenoir County Sheriff Chris Hill said. “Or, makes the game illegal. This will really have to come from the district attorney, Branny Vickory.
“Because, it’s his office that’s going to have to prosecute them. But, we’re closely following these court cases that keep coming out concerning video poker.”
At the city level, Kinston Department of Public Safety spokesman Woody Spencer said there’s been no movement on the sweepstakes front within the city limits.
Kinston Sweepstakes, located on West New Bern Road next to a Family Dollar, sits vacant, except for rows of computers with dark monitors. A bright LED sign in the window advertises the business is open, but a paper notice taped to the front door says it’s temporarily closed.
The notice advises those with questions to contact a South Carolina phone number. When called Thursday, a message plays where a man says, “Busy. Try again. Do not leave a message. Thank you.”
A March 28 article in the Columbia Journalism Review said North Carolinians could look to how South Carolina dealt with video poker in the ‘90s, caught off-guard from a loophole in the law. The story references an editorial by The (Columbia, S.C.) State Associate Editor Cindi Ross Scoppe, who wrote the situation involving sweepstakes is not unlike the early days of video poker.
“By the time we realized what had happened, it had grown to a $3 billion-a-year industry,” Scoppe wrote. “It was nearly impossible to walk into a convenience store without seeing a machine, with its flashing neon lights beckoning players.”
South Carolina video poker owners played a financial behemoth in the political realm, donating to candidates and conducting massive independent expenditure efforts. In North Carolina, investigations revealed tens of thousands of dollars injected into the political process from sweepstakes interests, including from people who were later arrested in a federal racketeering case.
And showing the industry still has clout in the legislature, Rep. Jeff Collins, R-Nash, and Rep. Michael Wray, D-Northampton, introduced a bill to legalize and tax sweepstakes operations, repealing N.C. General Statute 14-306.4.
Both men received contributions from sweepstakes interests.
Wes Wolfe can be reached at 252-559-1075 or wes.wolfe@kinston.com. Follow him on Twitter @WolfeReports.