Sweepstakes cafes closed
By Ethan Smith
Published in News on February 10, 2016 1:46 PM
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News-Argus/CASEY MOZINGO
Wayne County Sheriff Larry Pierce, left, and deputies wait outside an Internet cafe Tuesday for state Alcohol Law Enforcement agents to arrive.
Two local Internet sweepstakes cafes in Wayne County were shut down on Tuesday for continued violations of North Carolina general statutes that regulate such businesses.
A1 Cafe, at 2922 Suite B in the Shoppes at Goldsboro on Business U.S. 70 West, and Longhorn Business Center, at 1716 U.S. 117 South, were shut down as a result of a joint effort between several law enforcement agencies.
A third Internet sweepstakes cafe was shut down in Lenoir County that was operating covertly.
"That one was actually a location that had closed after receiving a cease and desist notice but then reopened and continued to operate covertly where you had to know somebody to get in to play the machines," said Alcohol Law Enforcement Agent Eric Swain.
The Internet sweepstakes cafe in Lenoir County was operating inside of an unnamed convenience store at a crossroads on N.C. 58 near Pink Hill.
Swain said the businesses were shut down as a result of violating North Carolina general statute 14-306, which regulates lotteries, gaming, bingo and raffles.
Swain said 55 machines and $21,000 total in cash was seized from A1 Cafe, while 50 machines and $15,000 in cash was seized from Longhorn Business Center.
There were four machines seized from the location in Pink Hill.
A machine refers to a computer terminal setup with all its components counted as a single machine, Swain said.
These businesses had also received cease and desist letters from the District Attorney's Office in late 2015, but had continued to operate despite this.
Complaints from citizens spurred the initial investigation into the businesses, Swain said.
"We received complaints from concerned family members of patrons of these businesses that were spending money in these cafes that are necessary for bills," Swain said. "One parent called us and was concerned that their student-child had spent all of her tuition money for school by going to these cafes."
Swain claimed Tuesday's bust was a result of the ongoing Operation Team Effort, which is an operation that has seen the Goldsboro Police Department and Wayne County Sheriff's Office partner with state and federal law enforcement agencies in an effort to reduce crime in Goldsboro and Wayne County.
"People often say these Internet sweepstakes violations are victimless crimes, but to me the victims are the people playing these games and the people left at home with no money to pay their bills," Swain said.
Swain also said Tuesday's operation to forcefully shutter the doors of the businesses was the result of following up on the cease and desist letters after law enforcement agencies were tipped off that they had continued to operate even after receiving notices of forthcoming enforcement action in the form of cease and desist letters.
ALE agents conducted an investigation after receiving the tips that the businesses were still operating illegally, which resulted in Tuesday's bust.
"They've had an opportunity to comply with the law, they have been served notices that enforcement action was forthcoming," Swain said. "This is another effort to show we are taking a stance on sweepstakes and on gambling."
Subsection 1A of the statute the businesses violated -- NCGS 14-306 -- states that any video game that requires payment to activate and does not require skill or dexterity to play is illegal under North Carolina law.
It is also illegal to receive payouts from such machines, and part of the statute in question specifically prohibits electronic machines and devices used for sweepstakes that have what is called an "entertaining display," which includes the entry process of getting to a sweepstakes game or the revealing of a prize.
This part of the statute -- NCGS 14-306.4, subsections "a" through "f" -- states that each violation of this statute is considered a separate offense and that anyone found in violation of this statute is guilty of a Class 1 misdemeanor for the first offense, a Class H felony for a second offense and a Class G felony for the third offense and every subsequent offense thereafter.
Swain said law enforcement agencies are still sorting through evidence collected from all three locations that were shut down to determine what the extent of the charges will be against the owners of each location.
Charges are expected to be handed down against the owners later this week.