Over the past several months, an undercover investigation with the Macon County Sheriff’s Office (MCSO) revealed that at least nine businesses in Macon County were illegally operating sweepstakes gaming machines.
“Today was only the execution of multiple search warrants,” Macon County Sheriff Robert Holland said on Monday. “Nine businesses total since Saturday night were investigated. This follows an undercover investigation that has gone on for several months. Every business paid out cash during this investigation.”
The legal battle surrounding sweepstakes machines has been challenged in court several times over the last few years and have resulted in sweepstakes businesses opening and closing throughout Macon County.
In November 2014, a case was decided by the court of appeals in Onslow County, North Carolina, between Gift Surplus, LLC and the sheriff of Onslow County. Ultimately, the case argued that the sheriff and district attorney did not have legal capacity to close down and seize sweepstakes machines used by businesses in the county because the machines being used were in compliance with the state’s sweepstakes laws. The games, which offer slot machine style gambling, were said to be operating based on skills instead of chance, thus making them legal. The law also states that sweepstakes machines are legal if winning sweepstakes entries are redeemable for “prizes” rather than cash. Cash prizes are illegal under North Carolina Redemption Laws.
