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Archdale Approves Tighter Internet Sweepstakes Restrictions

11:14 AM, Jun 23, 2010   |    comments
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Archdale, NC -- Archdale's City Council unanimously approved tighter restrictions on video gaming operations.

The restrictions only apply to new internet sweepstakes businesses. The new businesses will only be allowed to operate from 8:00 am until midnight and can have a maximum of 20 terminals.

The new businesses can't be within 500 feet of schools child care facilities, parks, religious organizations or other gaming operations. They are also not allowed within 200 feet of residential property.

WEB EXTRA: Read the full zoning ordinance

Winston-Salem and Graham city leaders have added additional fees to open an internet sweepstakes business in their city limits. In Winston-Salem, the fee is $2,500 to open the business and another $500 for each machine. In Graham, business owners pay $1,000 to open a store.

Earlier this week the North Carolina Senate agreed to ban electronic sweepstakes games by a 47-1 vote.

The bill will now return to the House, where its future is uncertain because Democrats are divided on the issue. Some want to tax video poker and others want to wait until the courts resolve the issue.

WFMY's 2 Wants Know did an investigation of how the businesses operate in November 2009. The businesses currently aren't breaking any gambling laws because the winners are predetermined. Legal owners much follow three rules: No purchase necessary, sell a legitimate product and have a finite pool of prizes. Businesses get around the "no purchase necessary" law because they do offer a mailing address to send a written request of a free entry.

RELATED: Nov. 2009 -- Sweepstakes Internet Games Springing Up In The Triad

An analysis by the N.C. lottery found the state could generate $576 million annually if lawmakers legalize video poker machines again and regulate them heavily.

WFMY News 2

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