North Carolina Sweepstakes Operators Receive Warnings

Nearly 100 sweepstakes operations in five North Carolina counties have received cease-and-desist letters from District Attorney Seth Edwards. They face a January 11 deadline or criminal charges. The state legislature banned sweepstakes cafés in 2010 and the state Supreme Court upheld the law in 2012.

Approximately 90 sweepstakes businesses in Washington, Beaufort, Tyrrell, Martin and Hyde counties in North Carolina recently received letters from District Attorney Seth Edwards telling them to cease operations by Monday, January 11 or face criminal charges.

The state legislature banned internet-based sweepstakes games in 2010, claiming they were a form of illegal gambling. The state Supreme Court upheld the law in 2012.

Numerous sweepstakes café operators said they have changed gaming software to comply with the law. However, several other cafés have been shut down by police and prosecutors.

Edwards noted, “If there are owners and operators that continue operating, then we’re going to have law enforcement go in and conduct an investigation, and they’ll eventually be charged assuming they’re breaking the law.” He added several law enforcement officers have been trained in investigating the sweepstakes operations.