North Carolina The Latest State To Decide Fate Of Sweepstakes Casinos

The North Carolina Court of Appeals has ruled against No Limit Games, a sweepstakes operator challenging restrictions on its machines in Robeson County. In a 2-1 decision, the court determined that the company's video sweepstakes games violate state law, reversing an earlier ruling that had temporarily blocked enforcement of the ban.

Case Background

The case stems from a legal dispute between No Limit Games and both local and state authorities.

• The company filed a lawsuit in May 2023, arguing that its games should be considered legal under state law.

• A lower court granted No Limit Games an injunction, effectively halting prosecutions related to its kiosks.

• The Appeals Court overturned that decision, citing prior legal precedents that classify such games as illegal under North Carolina's gambling laws.

Court Opinions

Judge Toby Hampson authored the majority opinion, comparing No Limit Games’ kiosks to previous cases involving similar sweepstakes systems.

• He noted that while the games involve some elements of skill, the outcomes are primarily determined by chance.

• He emphasized that North Carolina’s legislature explicitly outlawed these types of electronic sweepstakes to prevent gambling-related issues.

• His ruling aligns with previous decisions in the state’s courts, which have consistently upheld the ban on video sweepstakes machines.

In dissent, Judge Jefferson Griffin expressed a different view.

• Griffin argued that No Limit Games’ systems elevated skill over chance, potentially bringing them into compliance with the law.

• He believed the trial court was correct in granting the injunction to protect the company from undue harm while the legal dispute continued.

Wider Context

The case highlights the ongoing tension between sweepstakes operators and North Carolina officials.

• The state Department of Justice has consistently enforced the 2010 ban, countering operators’ attempts to reframe their games.

• State lawyers pointed to several rulings, including a 2022 Supreme Court decision, as proof that sweepstakes systems remain illegal when chance significantly determines prizes.

• No Limit Games maintains that its systems differ from previously banned setups, claiming skill is the predominant factor and calling for game-by-game legal analysis — a request courts have so far rejected.

Conclusion

The Appeals Court decision reinforces North Carolina’s firm stance against sweepstakes machines, signaling that operators face an uphill battle in proving legality. Unless the state legislature revisits the 2010 ban or higher courts intervene, sweepstakes operators like No Limit Games will continue to struggle against the prevailing interpretation that chance-driven systems constitute illegal gambling.