Enforce gambling laws

(Published July 26‚ 2005)

The courts will determine whether local businesses that allow customers to use computer terminals to gamble online are illegal. Meanwhile, it is encouraging that State Law Enforcement Division agents have decided to make it an issue.

The online sweepstakes terminals offer a basic game of chance and award prizes for winners who are chosen at random. Several York County businesses have on-premises terminals where customers can play the sweepstakes.

SLED agents recently confiscated sweepstakes terminals and other equipment from three York County businesses on the grounds that they were violating state gambling laws. Agents said the businesses met three criteria that make their enterprises illegal: Undercover agents paid to play the games; the terminals offered a game of chance; and the agents got cash prizes or reimbursements to their debit cards when they won.

Those running the operations and their lawyers say this does not constitute illegal gambling because customers don't actually pay to play. In order to play, a customer buys a long-distance phone card or Internet time card at a business that has terminals. The card includes not only minutes for long-distance or Internet service but also free sweepstakes points. Sweepstakes points can be used only to play the online sweepstakes. But points won by playing the sweepstakes can be redeemed for cash or merchandise.

Attorneys for the businesses say the games are legal because a payment isn't required to play; customers are merely buying phone cards and a chance to win a sweepstakes. And nothing in the state's law prohibits a sweepstakes operation, they contend.

But SLED officials say it's still gambling. If customers are required to buy phone cards, that is the same as paying to play.

We'll see. A York County judge soon will get the chance to decide.

But we're relieved that law enforcement agents have decided to press the case. Until recently, SLED agents had largely ignored the increase in the number of local businesses offering online gaming to customers. York County Sheriff Bruce Bryant said that he had neither the manpower nor the legal certitude to bust these operations.

Now, however, the legal issue is likely to be settled, and law enforcement officials, including Bryant, can proceed accordingly. And, legal loopholes aside, these operations certainly walk and quack like gambling.

Ironically, anyone with a computer and a credit card can gamble the day away at home. But when customers pay -- even in a roundabout way -- for the privilege of gambling at a business, that bears a striking resemblance to video poker, a scourge the state finally got rid of five years ago.

Online gambling casinos are just a variation on the same theme. We hope law enforcement officials are successful at shutting them down before the proliferate further

IN SUMMARY

Businesses that allow online gambling on their premises resemble video poker parlors.

Copyright © 2005 The Herald, Rock Hill, South Carolina