Feds: 6 sweepstakes companies agree to quit North Carolina


By MICHAEL BIESECKER
Associated Press

RALEIGH, NC (AP) — Federal prosecutors say they have reached an agreement with six large video sweepstakes companies that requires them to stop providing software to hundreds of internet cafes in North Carolina.

The agreement was announced Wednesday by the office of US Attorney Thomas Walker, the top federal prosecutor for the Eastern District of North Carolina.

According to prosecutors, the companies have agreed to cease all operations in the state by July 1. In return, Walker’s office won’t prosecute the owners of the software companies for past illegal activities.

The companies named in Wednesday’s agreement provide software to more than 600 internet cafes.

North Carolina legislators have repeatedly passed laws seeking to outlaw the games, which often resemble video slots. However, sweepstakes operators have continued to operate while fighting those bans in court.

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Categories: Associated Press, NC, News

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