NC Family Staff | January 7, 2025 | SHARE: 
The North Carolina Court of Appeals issued a ruling last Tuesday that determined a video sweepstakes operation in Robeson County likely violates state law. This decision furthers the ongoing fight against predatory gambling in the state, specifically regarding video sweepstakes. This ruling is a positive step in defending the laws designed to safeguard North Carolinians from the harmful effects of predatory gambling.
In a split 2-1 decision, the court ruled against No Limit Games and overturned a preliminary injunction from a trial judge that had permitted the continued operation of its video sweepstakes kiosks in Robeson County. In the majority decision in No Limit Games v. Sheriff of Robeson County, written by Judge Toby Hampson, the court concluded that the game in question failed the predominance test, stating, “Although dexterity and skill may be involved in a portion of the game, ‘when chance determines the relative winnings for which a player is able to play, chance can override or thwart the exercise of skill.’”
The lawyers for No Limits Games acknowledge, “The relevant test is whether, ‘viewed in its entirety,’ the results of video games ‘in terms of whether the player wins or loses and the relative amount of the player’s winnings or losses varies primarily with the vagaries of chance or the extent of the player’s skill and dexterity.’” However, the court ruled, “None of Plaintiff’s attempts to distinguish its game from the similar games previously held by our courts to be illegal change the fact that chance is core to the game and always determines the amount a player can win.” Thus, the games in question likely violate statutes and are not likely to be successfully defended in the trial court and are remanded thereto.
As far back as 1937, North Carolina banned slot machines (G.S. 14-306), well before the advent of video gambling machines. However, by the end of the century, video gambling machines were widely available. In 2000, North Carolina expanded the prohibition to include video gambling machines (G.S. 14-306.1) to protect against a rapid influx after South Carolina banned them altogether. In 2006, the General Assembly went further, banning all video gambling machines- except those allowed for federally recognized Indian Tribes (G.S. 14-306.1A). In 2008, after developers began marketing games as “sweepstakes,” the General Assembly passed G.S. 14-306.3, banning “server-based electronic game promotions,” targeting such games. Further litigation followed, and in 2010, the General Assembly passed G.S. 14-306.4, additionally making illegal games that present “sweepstakes through the use of an entertaining display.”
Every time lawmakers pass legislation, game operators attempt to modify their games to find loopholes. They often end up back in court, and the courts generally find the newest version illegal. Several key cases have followed, including State v. Spruill & Chapman (2014) and Sandhill Amusements, Inc. v. Sheriff of Onslow County (2015). The Sandhill case focused on the “predominance” test, which defines “the essential difference between a game of skill and a game of chance” as being “whether skill or chance determines the final outcome and whether chance can override or thwart the exercise of skill.” This precedent resulted in determining in Crazie Overstock Promotions, LLC v. State of North Carolina(2021) that the games were illegal since luck was “so inherent in the nature of Crazie Overstock’s games.” The same “predominance” test is central to the current case.
Predatory gambling is one of our key bipartisan issues at NC Family. We have been and remain committed to addressing this concern to continue to make North Carolina a state that fosters healthy individuals and thriving families.
NC Family President John L. Rustin responded to the decision, saying, “NC Family is grateful that the court ruled in favor of applying these important statutes to this case in Robeson County. We continue to recognize the dangers posed by the predatory video gambling industry and hope the continued defense of North Carolina gambling statutes will make it clear to the video gambling industry that it is neither legal nor welcome in our state. We remain committed to doing all we can to eliminate the harms of predatory gambling on individuals and families in North Carolina.”
