Justia North Carolina Supreme Court Opinion Summaries

Articles Posted in Gaming Law
The Supreme Court modified and affirmed the decision of the court of appeals affirming in part and reversing and remanding in part and order entered by the superior court entering final judgment in favor of Defendants in this litigation to enjoin enforcement measures stemming from the belief that a Rewards Program encompassed within the operation of Crazie Overstock LLC's enterprise was unlawful, holding that the Rewards Program constituted an unlawful sweepstakes in violation of N.C. Gen. Stat. 14-306.4.Crazie Overstock brought this action to enjoin enforcement measures taken by the State and certain members of the State's Alcohol and Law Enforcement Division. The enforcement measures were taken on the grounds that the Rewards Program was unlawful. The superior court entered final judgment in favor of Defendants, concluding that the Crazie Overstock Rewards Program may violate N.C. Gen. Stat. 14-306.4 and other North Carolina gambling provisions. The court of appeals affirmed the trial court's decision to grant summary judgment for Defendants with respect to the issue of whether the Rewards Program violated section 14-306.4 but reversed and remanded as to the issue of whether the program violated section 14-306.1A. The Supreme Court affirmed as modified, holding that the Rewards Program constituted an unlawful sweepstakes in violation of section 14-306.4, and remand was unnecessary. View "Crazie Overstock Promotions, LLC v. State" on Justia Law

Posted in: Gaming Law
In an effort to regulate gambling, the General Assembly passed N.C. Gen. Stat. 14-306.4, which bans the operation of electronic machines that conduct sweepstakes through the use of an "entertaining display" such as video poker or video bingo. Originally, Plaintiffs were companies that marketed and sold prepaid products. As a promotion, Plaintiffs developed electronic sweepstakes systems where participants were allowed to access a gamestation terminal that revealed the content of the sweepstakes entry using different displays that simulated various game themes. After the General Assembly enacted the current version of section 14-306.4, Plaintiffs challenged the constitutionality of the statute under the First Amendment. The trial court concluded that the law was constitutional. The court of appeals majority concluded that the announcement of the sweepstakes result and the video games were protected speech and that the entire statute was unconstitutionally overbroad. The Supreme Court reversed, holding that the legislation regulated conduct and not protected speech and was therefore constitutional. View "Hest Techs., Inc. v. State ex rel. Perdue" on Justia Law