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SPECIAL ALERT: US Attorney Clamps Down on Sweepstakes Gambling in NC

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The North Carolina Family Policy Council learned this afternoon that the United States Attorney’s office has entered into agreements with five sweepstakes software companies that will prohibit them from supplying software to the gambling industry in North Carolina. The extent and scope of the impact of this action is unclear at this point, but it could serve to eliminate all or a major portion of sweepstakes gambling in the state.

According to a News Release from the office of Thomas G. Walker, U.S. Attorney for the Eastern District of North Carolina, “the U.S. Attorney’s Office reached agreements with White Sands Technology, LLC, Sierra Software, LLC, TNT Software, LLC, Digital Reveal, LLC, and the principal of Figure 8 Technologies, Inc. These agreements provide that the United States Attorney’s Office for the Eastern District of North Carolina will not prosecute the software companies or their principals, for the use of alleged illegal internet sweepstakes software in internet cafes across the state of North Carolina. These agreements are conditioned upon their agreement that by July 1, 2015, they will no longer have any involvement with sweepstakes in North Carolina…” [emphasis added].

The News Release suggests that these companies provide software to more than 500 “Internet Cafes” in North Carolina.

“Sierra Software, LLC and the principal of Figure 8 Technologies, Inc. agreed that they will not take part in North Carolina in any activities relating to electronic sweepstakes at all. White Sands Technology, LLC, TNT Software, LLC, and Digital Reveal, LLC agreed that they will take no part in any actions relating to sweepstakes relating in any way to the use of an entertaining display in North Carolina. They also agree[d] to provide notice to the U.S. Attorney’s Office for the Eastern District of North Carolina before taking part in any activities relating to sweepstakes or gambling in North Carolina not covered under the ban,” the News Release states.

United States Attorney Thomas G. Walker stated: “We hope this action will be a big step forward in ensuring compliance with North Carolina’s gambling laws. Our office is prepared to assist the state in enforcing large scale violations of the law.”

Mark J. Senter, Branch Head of North Carolina Alcohol Law Enforcement, stated: “Alcohol Law Enforcement is proud to have worked with the U.S. Attorney’s Office for the Eastern District of North Carolina in this case. Sweepstakes machines have been a source of problems for local law enforcement and the community for years. It is our hope this action eliminates this illegal activity.”

The North Carolina Family Policy Council will be providing further insight into the impact of these actions as additional information becomes available.

 

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