The North Carolina Court of Appeals upheld law enforcement’s crackdown on sweepstakes casinos in a landmark ruling. The decision focused on Robeson County video game kiosks run by No Limit Games, escalating the discussion about whether or not these games are permitted by state law.
Efforts to Close Loopholes in Gaming Laws
Sweepstakes gaming has remained a contentious issue in North Carolina since the state banned video poker and slot machines in 2006. In response, gaming companies have adapted by modifying prize-award mechanics, arguing their games rely on skill rather than chance.
Despite legislative efforts in 2008 and 2010 to address such loopholes, companies continue to test the boundaries with redesigned gaming formats. This case focused on whether No Limit Games’ machines were games of chance, which are prohibited under North Carolina law.
Judges Toby Hampson and April Wood ruled that the games relied on chance, regardless of interactive features like the “nudge” mechanic or a memory game. Hampson stated, “The outcome is ultimately determined by chance,” emphasizing that even the memory game lacked winnable elements, nullifying any claim of skill involvement.
However, Judge Jefferson Griffin dissented, arguing that the games met the legal definition of skill-based gaming. Griffin supported a previous Superior Court ruling, noting that if skill impacts outcomes more than chance, such games should be lawful.
Established in 2020, No Limit Games plans to appeal the decision, which now advances to the North Carolina Supreme Court due to the appellate court’s divided opinion.
This ruling reflects ongoing tensions between gaming operators and state regulators as both sides navigate the murky boundaries of legal gaming. The decision is a blow to sweepstakes operators and a victory for law enforcement seeking to enforce stricter interpretations of state law.
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