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Herald, The (Rock Hill, SC) (KRT) Via Thomson Dialog NewsEdge) Jun. 4--York County's first battle over Internet sweepstakes terminals -- and possibly the first such battle in the state -- will begin in a Rock Hill courtroom Monday morning.
The question facing Magistrate Robert Davenport Jr. is whether 319 terminals that authorities seized three months ago are illegal.
The state will argue the terminals, which are computers connected to the Internet, are the latest gambling devices.
But Jim Griffin, a Columbia attorney representing the Internet sweepstakes company, says he'll contend the systems are simply computers.
The hearing comes after a series of gaming machine seizures in York County that began March 2 when state and local authorities raided 13 business and grabbed 464 machines, the majority of which were for playing online sweepstakes. Overall, police have picked up 544 machines, including 411 Internet sweepstakes terminals.
Police say they don't need warrants because state law allows them to seize machines they believe are illegal and present them to a magistrate who can decide on the machines' legality. On the day of the initial raid, Davenport inspected all the machines and determined they violated state law.
But Davenport said Monday's hearing is the first opportunity for both sides to make a case about the terminals. Then, it's up to him to decide which one is right.
Monday's hearing is also one of the first, if not the first, in the state regarding the legality of online sweepstakes terminals, said inspector Stacy Drakeford of the State Law Enforcement Division.
South Carolina has struggled with video gaming for years. In 2000, the state banned video poker after police and others blamed the industry for increased violent crime and gambling addiction. Since video poker's demise, the gaming industry has introduced a number of electronic gaming devices that have tested state laws. Several of those games have been ruled illegal because of their similarity to video poker games.
Next generation?
The Internet sweepstakes terminals, which entered the state last spring, are the latest battleground in the state's ongoing war with the video gaming industry.
"This is the next generation of gambling machines and the like that law enforcement is having to keep on top of," said Mark Plowden, a spokesman for the S.C. attorney general's office.
Although police also have seized terminals owned by another Internet sweepstakes company, only those owned by Texas-based Game Systems will be debated Monday.
Griffin, who represents Game Systems, contends the terminals aren't the old video poker machines; they're just computers.
"It's not a slot machine," Griffin said. "It doesn't accept money. It doesn't spit out money. It's a computer."
This is how Griffin says the game works: A customer buys a long-distance phone card or Internet time card at a place that has sweepstakes terminals. The card not only has minutes for long-distance or Internet service, but also free sweepstakes points. For example, a customer might pay $5 for 100 minutes of service, which comes with 100 free sweepstakes points.
These points can't be traded for cash or merchandise; they can only be used to play the online sweepstakes. Points won during a sweepstakes game cannot be used to continue playing. They must be redeemed for cash or merchandise.
Yet Plowden of the attorney general's office said police picked up the machines because the sweepstakes promotion is just a front for gambling.
Griffin, however, wants to know the difference between his client's online sweepstakes and the popular bottle-top sweepstakes offered by soft drink companies. He also said the attorney general's office hinges its case on a part of the law that states any device "pertaining to games of chance" is illegal.
But Griffin said most Microsoft computer products have games of chance on them, such as the card game solitaire.
Circumventing the law
The police who seized the machines don't see the sweepstakes that way. They say the terminals are legal, but what is done on them is not.
"They get paid right there at the business," said Lt. Jason Dalton, east side commander of the York County Multijurisdictional Drug Enforcement Unit, which also polices illegal gambling in the area. "That's the difference. You can't do that at your home."
Like Plowden, Dalton said the games are just another attempt to circumvent the law.
"To me, it's just a new-age poker machine," Dalton said. "And it's technology trying to out-advance the law."
Separate hearings planned
This week's hearing is just the first in a series involving the seized gaming machines, which included several different types, Magistrate Davenport said. To avoid confusion, he said the machines are being divided into different categories, and each group will get a separate hearing.
Regardless of how Davenport rules Monday, each side will have a chance to appeal the decision. The case could make it's way through the courts, and some have speculated it could go as far as the state Supreme Court.
Sweepstakes machine seizures
At Monday's hearing, a magistrate will rule on the legality of Internet sweepstakes terminals that were seized March 2 from the following businesses:
ROCK HILL
Party World II 45
The Best Stop 11
Mount Gallant Sweepstakes 16
FORT MILL
Lucky Lotto 26
House of Winners 51
Big Daddy's Quick Pick Lotto 30
Hello Money Internet Cafe 81
Blazin 777 59
TOTAL 319
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