Appeals Court backs law enforcement in North Carolina sweepstakes case
The decision was split in a 2-1 vote.
Key Points
- The appeals court reversed a decision in favor of No Limit Games last year
- The ruling stated that the company’s machines were comparable to other machines the state has declared illegal
The North Carolina Court of Appeals has ruled against a challenge from a video sweepstakes operator, according to a local news report in The Carolina Journal.
The ruling reversed a previous decision by a trial judge last year, who issued a preliminary injunction that favored the sweepstakes business.
The 2-1 decision addressed No Limit Games’ legal challenge again a ban on its machines in Robeson County. The court ruled that No Limit Games’ video sweepstakes machines “comparable to those North Carolina courts have determined to be illegal in previous sweepstakes disputes.”
Judge Jefferson Griffin was the only one on the panel who dissented the ruling, the local report said.
He said in a written statement, “We acknowledge the legislature intended to cast a wide net in regulating electronic sweepstakes. However, where, as here, a plaintiff is able to design a system which ultimately elevates skill over the chance inherent in a sweepstakes, I would hold they have complied with the law.
“To this end, I would also affirm the trial court’s conclusion of law asserting the balance of equities tilts in Plaintiff’s favor – thus warranting an injunction to prevent harm to Plaintiff and its business.”
Last spring, North Carolina joined the ranks of more than 35 US states that allow legal sports wagering within their borders. Sports betting statewide made its debut in March.
Prior to the launch, the North Carolina State Lottery Commission issued sports wagering operators licenses to eight operators.
Under the current regulations, the Lottery Commission is allowed to award up to 12 interactive sports wagering operator licenses statewide once the market is established. Players would then have access to online and mobile betting, as well as in-person wagering.
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