Sweepstakes Machines Outlawed in Hawaii

PJY Enterprises lost its lawsuit in federal court to retrieve sweepstakes machines seized by police for violating gaming regulations on the Hawaiian island of Oahu.

Federal Judge Leslie Kobayashi ruled against Products Direct Sweepstakes machines in Oahu, citing the coupons purchased from the machines did not equal the amount redeemed, nor did customers receive the promised products in the mail, which indicated they were using the machines to gamble. 

“No reasonable jury would believe the plaintiff’s story,” Kobayashi said. Customers purchased the coupons because they thought they had a better chance of winning, the judge ruled. 

Since 2012, over 150 machines have been seized by law enforcement. Machine distributor, PJY Enterprises, LLC, and other companies sued for the machines to be returned after they were confiscated for violating Hawaii’s gaming laws. 

The lawsuit specifically named Honolulu Prosecutor Keith Kaneshiro and Police Chief Louis Kealoha. Kaneshiro was accused of mislabeling the machines as a form of gaming. The companies contend their customers won the coupons to exchange them for products available online or at arcades.

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