Sweepstakes Bill

A House judiciary committee has unanimously approved a bill that would outlaw online sweepstakes that look, sound and play like video slot machines. Such devices have become common in convenience stores and truck stops. Lawmakers passed a bill outlawing stand-alone video poker in 2005. Since then, video slot devices that are tied into a central computer server have proliferated throughout the state. Operators use a perceived loophole in the state law to claim the devices are legal, but different law enforcement agencies disagree.

State ALE agents have raided businesses in several counties that have operated the devices. But Guilford County's district attorney has refused to prosecute such cases. Rockingham County District Attorney Phil Berger Jr. dropped charges against several defendants when video slot machine operators sued to prove they were operating legally. Berger said that if the General Assembly did pass a law clarifying the issue, it would be useful for all involved. "This is an issue that has certainly stirred a lot of interest around here," Berger said of Rockingham County.
Theresa Kostrzewa, a lobbyist for one of the video slot companies, asked the committee to hold off on passing the bill, saying that it could have unintended consequences. She said that the type of games that would be outlawed under the bill, which are offered in conjunction with the purchase of phone or Internet time, are similar to sweepstakes offered by Pepsi or Skittles. (Mark Binker, THE NEWS & RECORD, 7/01/08).