An appeals court rules that sweepstakes casinos may violate state laws
The North Carolina Court of Appeals has upheld efforts to crack down on sweepstakes casinos, siding with law enforcement in a closely contested decision regarding video gaming kiosks operated by No Limit Games in Robeson County. The ruling is part of an ongoing legal battle to define the legality of such games under state law.
North Carolina has been grappling with sweepstakes gaming since it banned video poker and slot machines in 2006. Gaming companies have since sought to bypass these laws by tweaking how prizes are awarded, claiming their games involve skill rather than pure chance.
Despite additional legislation in 2008 and 2010 designed to close loopholes, companies have continued to challenge the law with revised game mechanics.
In this latest case, two appellate judges ruled that No Limit Games’ offerings were still games of chance, which are illegal in the state. Judge Toby Hampson, joined by Judge April Wood, noted that the games’ outcomes were fundamentally determined by chance, regardless of elements like a “nudge” feature or a memory game designed to enhance player interaction. Hampson argued that even the memory game was unwinnable, rendering the supposed skill component irrelevant.
However, Judge Jefferson Griffin dissented, supporting a previous Superior Court decision that these games incorporated enough skill to comply with the law. Griffin emphasized that if skill ultimately influences the outcome more than chance, such games should be permitted.
No Limit Games, established in 2020, plans to appeal the decision, which now heads to the North Carolina Supreme Court due to the split ruling. The case highlights the ongoing tension between gaming operators and state authorities as they navigate the boundaries of legal gaming in North Carolina.
