Legal News
Lucky Day sweepstakes parlor is located beside El Parral at 734 S. Van Buren Road in Eden, North Carolina.
EDEN, NC— Mexican restaurant customers, police and a national cyber security expert know that a powerful EMP signal emanating from a neighboring sweepstakes internet cafe operation is disabling vehicles in the restaurant parking lot and 911 emergency service in the area.
Attorney says there’s ‘considerably more’ cafes than in other Florida cities
JACKSONVILLE, Fla. – More about why the Seminole Tribe of Florida has filed a lawsuit against numerous internet cafes in Jacksonville, asking a judge to issue an injunction shutting them.
The attorney who filed the complaint told the us on Thursday it’s because there are more internet cafes in Jacksonville than in any other city in the state.
“The reason we selected Duval (County) is there appears to be considerably more of them in Duval than other counties,” said attorney Barry Richard, who represents the Seminole Tribe.
Investigators have been following the spread of the popular, but often criticized, businesses in the city since the first internet cafe opened in the early 2000s.
The number of cafes operating in Jacksonville has since grown to nearly 200, and the suit raises questions about what could happen to them.
We have been around to most of the cafes listed in the lawsuit, most of which feature so-called fish games. With the new games, the prize dollars add up, and so can the losses. The tables can earn a hefty profit for the owners.
That’s one reason why the Seminole Tribe is suing, saying that it’s not an arcade, but it’s pure and simple gambling.
“These facilities are in direct violation of Florida law,” Richard told the us by phone. “They are also in violation of the contract.”
Under that agreement, the Seminole Tribe of Florida pays millions of dollars to the state in order to have the exclusive rights to casino-style gambling.
COURT DOCUMENT: Seminole Tribe lawsuit
The suit does not list all of the nearly 200 locations operating in Jacksonville, but those named are located all around Jacksonville. We went to many of them Thursday and was told no comment.
But at Funcade on Emerson Street, I was able to go inside and see how it operates. A supervisor said they have a legal permit. Customers weren’t happy about the suit.
“I don’t see nothing wrong with it myself,” customer Calvin Mobley said.
In the past, the Jacksonville Sheriff’s Office has conducted high-profile raids of some cafes, which ended without prosecutions.
On Thursday, Sheriff Mike Williams told us that there is not much he can do right now.
“We are almost in limbo,” Williams said. “We need some type of legal direction about is it gambling or is it not.”
But the attorney for the Seminole Tribe said the sheriff is wrong.
“I don’t share his belief that the law is uncertain,” Richard said. “The law is very clear.”
Richard said this could eventually end up in court, but they’re hoping to resolve this without taking that step.
Unclear if arcade was approved before or after moratorium
JACKSONVILLE, Fla. – A month after the Jacksonville City Council voted unanimously to place a moratorium on internet cafes, we learned a new sweepstakes center plans to open its doors on the Northside.
JACKSONVILLE, Fla. – They’re called adult arcades. Formerly known as internet cafés, these businesses are in storefronts in almost every neighborhood in Jacksonville.
Once banned by state law, the city of Jacksonville has issued permits for 94 of them. Hundreds more tried to open but never received permits.
Sheriff tells us that most in city are running legally
JACKSONVILLE, Fla. – Hundreds of internet cafés, also known as adult arcades, are operating in Jacksonville, and many remain open after having their permits revoked.
Over the past decade, we have reported on raids and arrests at the arcades. In most cases, the charges were dropped and the cafés remain open.
North Carolina has banned video poker for 12 years, but now fish game tables are the new trend. According to arcade operators, they’re following state law because the money a person can win is based on skill not luck. Officials say otherwise.
Authorities on Thursday raided a Randolph County arcade following a state investigation into video gambling in North Carolina.
State Bureau of Investigation agents entered the Asheboro business at about 2 p.m. with search warrants — marking the second crackdown in recent weeks at gaming parlors that are spreading across the state.
Outside the Lucky Day Skill Games & Fish Tables business on North Fayetteville Street, a law enforcement officer stood guard. A few afternoon customers tried to enter but were told, “They’re closed.”
Inside, police interviewed people and began reviewing various computer-based games and “fish tables.”
As of 3:00 p.m., the SBI had not announced arrests or specific charges.
The surprise law enforcement operations was the latest in an ongoing battle over whether video game arcades that feature “skill games” violate North Carolina’s strict gambling laws.
Other agencies involved included N.C. Alcohol Law Enforcement, U.S. Homeland Security, the Randolph County District Attorneys Office, Asheboro Police Department and the Randolph County Sheriff’s Office.
Sheriff’s offices and police statewide complain the arcades attract crime, due to their late-night hours and large amounts of cash on hand.
Thursday’s arrests are almost certain to draw legal scrutiny from the arcade owners and their lawyers. They contend the video games are games of skill, referencing a loophole in state law.
Across the state, sweepstakes-style games and multi-player tables called “Fish Games” have grown in popularity over the past year. The businesses are often open 24 hours, and often offer customers free food and accept as little as $1 to get started.
Earlier this year, the Charlotte Observer went inside fish game arcades, talked with several owners and an attorney for the arcade industry. They say allegations of illegal gambling happening inside are unfounded.
In several other states, fish games have been effectively shut down after forensic analysis showed the game’s outcome was based mostly on a person’s luck.
This debate over skill versus chance has historically been one for the courts in North Carolina to decide.
Some state lawmakers say they think North Carolina’s criminal penalties for gambling should be tougher.
State Sen. Andy Wells, a Republican from Hickory, says police officers in small towns where there are many arcades often find it difficult to put in a dent in operations.
“It’s kinda like counting the mushrooms in the rain. By the time you count ‘em 10 percent more have come up,” Wells told the Observer in August.
Authorities made nine arrests on Nov. 5 in Anson County, according to the SBI.
Gaming equipment, cash and documents were seized Wednesday during a multi-county raid in Clermont and Brown counties.
In the roughly six months since the Supreme Court struck down a federal ban on sports gambling, a handful of states have sprung to action to legalize the practice, from New Jersey to Mississippi.
In North Carolina, home to three major-league sports teams, the issue hasn’t gotten much attention lately. But experts say that in the coming months that could change, as they expect legalized sports betting to become a bigger part of the conversation locally.
Several internet cafes in St. Augustine have closed up shop.
While the reason behind all of the closures isn’t clear, the St. Augustine Police Department recently sent letters accusing the businesses of violating the law by having “gaming devices which pay off in money or other things of value.” The letters gave the businesses 48 hours to cease any illegal gambling.
ASHEBORO –State Alcohol Law Enforcement special agents led a raid on a business that was operating illegal gaming machines.
ALE confiscated about two dozen gaming machines from the Lucky Day Skill Games & Fish Tables, 1200 N. Fayetteville Street.