Contest organizers in North Carolina abandoning their ventures to evade legal repercussions
==================================================================
In a significant turn of events, six software providers have agreed to stop operating in North Carolina, marking a major victory in the long-standing fight against illegal gambling. The decision by the US Attorney's office and these companies follows the North Carolina Supreme Court's ruling in the Tarboro Internet cafe case.
The six companies - White Sands Technology LLC, Sierra Software LLC, TNT Software LLC, Digital Reveal LLC, Figure 8 Technologies Inc., and HSV Entertainment LLC - were operating in over 600 locations across the state. The North Carolina Alcohol Law Enforcement and local law enforcement have been at the forefront of the battle against illegal sweepstakes for years.
Cumberland Sheriff Earl Butler hailed the announcement as a major milestone in the fight against illegal gambling in North Carolina. He expressed hope that these agreements would not only stop the current evasion of North Carolina's gambling laws but also deter future attempts.
Mark Senter, branch head of North Carolina Alcohol Law Enforcement, shared similar sentiments, stating that the deal between the US Attorney's office and the sweepstakes companies is a hopeful step that could eliminate illegal sweepstakes activity. US Attorney Thomas Walker announced the deal and indicated that he would not be prosecuting the companies or individuals if they cease operations by July 1.
The ban against electronic gambling machines in North Carolina was first put in place by state lawmakers in 2006. Sweepstakes machines have been a persistent problem for local law enforcement and the community in North Carolina. The North Carolina Supreme Court's decision and the actions from the US Attorney's office are believed to make it easier to keep the sweepstakes industry under control.
As of mid-2025, there is no indication that sweepstakes cafes currently operate legally or openly in North Carolina. Video gambling and sweepstakes machines remain illegal in the state. The current status of sweepstakes cafes is that they do not legally operate in North Carolina following these legal actions and agreements, and any use of sweepstakes or video gambling machines remains prohibited under state law.
This action aligns with nationwide scrutiny, including cease-and-desist orders and legislative initiatives against sweepstakes gambling seen in other states. It is part of broader enforcement efforts targeting sweepstakes-style gambling venues and internet sweepstakes casinos nationwide, focusing on compliance with state gambling laws.
The only legal casinos in North Carolina are tribal casinos operated by the Eastern Band of Cherokee Indians and the Catawba Indian Nation; commercial and sweepstakes gambling venues remain illegal and have been subject to ongoing legal restrictions.
The article was first posted on May 10, 2015, and was last updated on June 23, 2025. This victory is a testament to the relentless efforts of law enforcement agencies in North Carolina to maintain the integrity of the state's gambling laws and protect its communities from the harmful effects of illegal gambling.
- The decision by the US Attorney's office to make six companies cease operations in North Carolina's casino-and-gambling scene follows the state's Supreme Court's ruling in the Tarboro Internet cafe case, marking a significant victory in the fight against illegal gambling.
- The ban against casino-games and video gambling machines, including sweepstakes machines, was first put in place by North Carolina lawmakers in 2006, and these illegal activities have been a persistent problem for local law enforcement and the community.
- The recent agreement between the US Attorney's office and the sweepstakes companies is part of broader enforcement efforts targeting sweepstakes-style gambling venues and internet sweepstakes casinos nationwide, focusing on compliance with state gambling laws and crime-and-justice matters.
- Politicians and policy-and-legislation, as well as general news outlets, have been closely monitoring gambling trends, especially regarding lotteries, in North Carolina and other states, reflecting the ongoing interest in this issue and its impact on communities.
