GCSO Targets Alleged Internet Gambling Establishments

Greenville County Sheriff Steve Loftis said Thursday his office and SLED had seized 107 Internet gaming machines last week as part of a gambling crackdown on so-called Internet sweepstakes cafes.

Following an undercover investigation, the seizures took place on Aug. 9, he said, when deputies and SLED agents served search warrants at three different establishments in the county. An investigation is ongoing in the matter. Loftis said that no charges or arrests have been made at this time in conjunction with the raid, but could be forthcoming.

"Prior to seizing any of these machines, we had Chief Magistrate Diane Cagle respond to the locations and she deemed them to be illegal," Loftis said. "People would come into the business and pay for Internet time. These machines had specific games that could be played and if the player won, then they would receive a cash payout. The majority of the games that we saw being played were slots-type games."

The establishments where the games were seized were located at 3023 White Horse Road (52 machines seized); 6516 White Horse Road (35 machines); and, 1386 N. Pleasantburg Dr. (20 machines), Loftis said.

Loftis estimated there were probably 17 Internet gaming operations ongoing in the county that could be illegal — and he warned them that they could be next on the sheriff's department's hit list.

"We are going to enforce the law, because video gambling was ruled illegal in 1999," Loftis told Patch. "And we also want to let these Internet [cafe] owners and operators know that we are going to continue to look at them. We've identified about a total of 17 different locations in Greenville County — and at some point in the future we are going to be visiting all of them [undercover]. We are not going to allow illegal gambling to be conducted openly in Greenville County."

Loftis told Patch the machines are springing up all around the county. "And the quicker we can visit the other locations and attempt to check them to determine if they are like these three operations, we will be charging them also," he said.

 

Meantime, many counties and municipalities in South Carolina, , are seeking extra-judicial ways to cope with the rise of Internet gaming as they wait for the state legislature and the courts to act.

Operators throughout the state insist their sweepstakes operations are legal, saying they are no different than prize contests offered by major companies such as McDonald’s, Gillette or Pepsi. 

Rather than running video casinos, which are banned by state law, the operators argue they are merely selling a product — such as phone cards, Internet usage, business services, or coffee — and their customers get to reveal prizes by playing slots, poker or keno on a computer while in-store.

However, the state's Attorney General, SLED, various Solicitors, and sheriffs throughout the state have stated they believe such establishments are illegal. 

But so far, no definitive ruling has been made, either by the courts or the state legislature — though the legislature has a bill before it that would outlaw Internet sweepstakes games. Local authorities have said they hope the legislature will act promptly on the bill when the General Assembly goes back into session early next year.

Loftis said Thursday the operators of the seized machines were operating differently — simply providing cash payouts for paid Internet time.

"You walk into the establishment and it appears to be an Internet cafe, but these computers are gaming machines.... You put money in and if you win or gain points you automatically get a cash payout," Loftis told Patch. "They are strictly for gambling."