FIRST ON 3: District Attorney Ben David on Sweepstakes Parlors

THE FOLLOWING LETTER WAS SENT OUT THIS AFTERNOON TO LAW ENFORCEMENT AGENCIES IN BEN DAVID’S DISTRICT. IT WAS ALSO SENT TO MEMBERS OF THE MEDIA…

To: All Members of Law Enforcement within the Fifth District

From: District Attorney Benjamin R. David

As you are aware, a new law, North Carolina General Statute 14-306.4, entitled “An Act to Ban
the Use of Electronic Machines and Devices for Sweepstakes Purposes” goes into effect today. The
District Attorney’s Office is in the process of reviewing this new statute, together with a recent case, Hest
Technologies, et al. v. North Carolina, which was decided days ago by the Honorable Joe Craig. The
Superior Court Judge in that matter indicated that prohibition of the games set out in Section 4 (b) 1-8 of
the statute was a constitutional act, but any other game not specifically enumerated would be allowed to
continue to operate. Accordingly, the following eight games are now illegal and CANNOT operate in the
State:

1. A video bingo game;
2. A video craps game;
3. A video keno game;
4. A video lotto game;
5. Eight Liner;
6. Pot-of-Gold;
7. A video poker game or any other kind of video playing card game; and
8. A video game based on or involving the random or chance matching of different pictures,
words, numbers, or symbols not dependant upon the skill or dexterity of the player.

We advise that law enforcement visit those sweepstakes establishments within their jurisdiction,
give them a copy of the new law, and inform them that operation of the prohibited games will result in
enforcement of the law and seizure of the devices that violate the law. A first offense is a Class 1
misdemeanor. A second offense is a Class H felony. Any subsequent offense is a Class G felony.
Other games may be illegal if there is probable cause demonstrated that the prizes are secretly
being redeemed for cash by the establishments that operate them. To the extent that this new law is open to
interpretation, we advise using caution in its enforcement, until further guidance is received from the North
Carolina Attorney General’s Office in the form of a written opinion. Until that opinion is issued, uniformity
of enforcement will be difficult and we do not want to contribute to a disparity of enforcement throughout
the State. As soon as the Attorney General’s Office provides more guidance, we will communicate with
your agencies.

If video gaming establishments have questions about this new law, they are encouraged to seek
out privately retained legal counsel. My office cannot give them legal advice and law enforcement officers
should refrain from interpreting the law for these establishments. If any law enforcement agency or officer
has a question about this new law, my office will be glad to provide assistance through Senior Assistant
District Attorney Tom Old at (910) 341-1446 or cross designated Assistant City Attorney Bill Wolak at
(910) 343 3629.