Internet Sweepstakes Network displays audit system that is compatible with SCEL

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Saying that he supports “freedom for the people of South Carolina,” a local legislator spoke out against a legislative effort to ban sweepstakes machines.

State Sen. Brad Hutto, D-Orangeburg, appeared on S.C. Educational Television’s “This Week in the State House” to discuss the issue with Lt. Gov. Glenn McConnell and Sen. Larry Martin, R-Pickens.

Martin feels the sweepstakes machines that have replaced video poker, outlawed in 2000, are nothing more than “video poker 2.0.” Hutto said he is willing to let citizens make their own decision.

“You’re fine with the little things like betting on the golf course or the stock market but this is for the little people,” Hutto said.
“What is clearly in the law? Video poker is banned but sweepstakes weren’t. We have bingo and casino boats and other forms. You are not going to wish gambling away. If we didn’t have the lottery, we could say we have a policy in this state where you can’t do this.”

A bill that would have shut down the machines passed the House, but died Thursday in the Senate after the General Assembly adjourned for the session. Legislators must reintroduce the bill next year for any reconsideration.
Martin noted litigation in the courts is ongoing, saying the General Assembly hasn’t created appropriate legislation to deal with sweepstakes machines.

 

“My take is we should have a consensus,” Martin said. “My biggest regret is we didn’t have the debate on the Senate floor this session. We haven’t had a policy debate on whether this type of activity should be engaged in.

“When you are dealing with that type of cash money in the machine, it is ripe for all kinds of fraud. There is no tracking how much goes in and comes out. It is all unregulated.”
Several circuit courts have ruled the gaming machines legal. Many law enforcement agencies view them as illegal and have taken steps to confiscate them.
Hutto said the money should be accounted for and taxes should be paid on it.
“I think there is software that can track how much money goes into these machines,” Hutto said. “It can already be tracked when debit and credit cards are used.

“The way it’s set up, the machines can affect the profitability of some smaller mom-and-pop stores. If they are employing people and decided to have them in their store, that is a business decision.”

Unlike most other video gaming machines, sweepstakes machines involve no cash payouts. Instead, players win sweepstakes points that can be collected and traded in for Internet time or phone time.

 

Owners of the machines say that the outcomes are all predetermined which makes them not games of chance.
Contact the writer: psarata@timesanddemocrat.com or 803-533-5540.

Internet Sweepstakes Network Introduces Accounting Software To South Caldwell Attorney

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Saying that he supports “freedom for the people of South Carolina,” a local legislator spoke out against a legislative effort to ban sweepstakes machines.

State Sen. Brad Hutto, D-Orangeburg, appeared on S.C. Educational Television’s “This Week in the State House” to discuss the issue with Lt. Gov. Glenn McConnell and Sen. Larry Martin, R-Pickens.

Martin feels the sweepstakes machines that have replaced video poker, outlawed in 2000, are nothing more than “video poker 2.0.” Hutto said he is willing to let citizens make their own decision.

“You’re fine with the little things like betting on the golf course or the stock market but this is for the little people,” Hutto said.
“What is clearly in the law? Video poker is banned but sweepstakes weren’t. We have bingo and casino boats and other forms. You are not going to wish gambling away. If we didn’t have the lottery, we could say we have a policy in this state where you can’t do this.”

A bill that would have shut down the machines passed the House, but died Thursday in the Senate after the General Assembly adjourned for the session. Legislators must reintroduce the bill next year for any reconsideration.
Martin noted litigation in the courts is ongoing, saying the General Assembly hasn’t created appropriate legislation to deal with sweepstakes machines.

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“My take is we should have a consensus,” Martin said. “My biggest regret is we didn’t have the debate on the Senate floor this session. We haven’t had a policy debate on whether this type of activity should be engaged in.

“When you are dealing with that type of cash money in the machine, it is ripe for all kinds of fraud. There is no tracking how much goes in and comes out. It is all unregulated.”
Several circuit courts have ruled the gaming machines legal. Many law enforcement agencies view them as illegal and have taken steps to confiscate them.
Hutto said the money should be accounted for and taxes should be paid on it.
“I think there is software that can track how much money goes into these machines,” Hutto said. “It can already be tracked when debit and credit cards are used.

“The way it’s set up, the machines can affect the profitability of some smaller mom-and-pop stores. If they are employing people and decided to have them in their store, that is a business decision.”

Unlike most other video gaming machines, sweepstakes machines involve no cash payouts. Instead, players win sweepstakes points that can be collected and traded in for Internet time or phone time.

Photobucket

Owners of the machines say that the outcomes are all predetermined which makes them not games of chance.
Contact the writer: psarata@timesanddemocrat.com or 803-533-5540.

Some South Carolina Counties Skipping The Hassle And Decide To Tax

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Richland County, SC – Richland County Council voted at a June 5 meeting not to interfere with Internet sweepstakes cafés popping up around Columbia.

Currently, two Internet sweepstakes businesses, Cafe 21 and A&C Business Center, operate under the pretense of being Internet cafés, according to The State, and at least six other similar businesses are in the queue to obtain licenses.

The topic sparked tension between council members as Council and staff discussed the semantics of “Internet café” versus “sweepstakes.” County Administrator Milton Pope said the intent of the businesses to conduct Internet sweepstakes games was obvious. Some law enforcement officials say sweepstakes games constitute illegal gambling; industry proponents say they’re legal games similar to the McDonald’s Monopoly games.

Councilman Damon Jeter championed a motion to grant the six businesses licenses to operate.

But Jeter did not disclose that in March he registered as a lobbyist for sweepstakes game company Magic Minutes.

Asked Wednesday by Free Times about his relationship with Magic Minutes, Jeter said that the company “is a different type of business.”

Jeter said he did not disclose his lobbyist relationship to the public or Council because the issue before Council was not Internet sweepstakes, but Internet cafés.

“We were talking about Internet cafés last night,” he said. “I could see it if I was against regulations, but I’m for giving staff the opportunity to look at restrictions at where [the cafés] are located in relationship to neighborhoods, churches and schools.”

Jeter added: “I don’t know everything about sweepstakes. I’ve never been in an Internet café, and my understanding is these six businesses are legitimate.”

According to the Magic Minutes website, “Magic Minutes is like no other product in SC and was the first video sweepstakes promotion introduced to our state.”

Cathy Hazelwood, attorney at the South Carolina Ethics Commission, said the ethics of Jeter’s involvement are yet to be determined. According to Hazelwood, Jeter enters unethical ground only if he is deciding on matters that will directly affect Magic Minutes.

“I understand he’s a lobbyist for Magic Minutes,” she said. “But the moratorium was on the issuing of licenses to Internet cafes using sweepstakes. There’s not enough information right now to decide if there’s a conflict. You’re really not going to know until it all plays out.”

Hazelwood adds that an ethics issue will arise if the businesses get their licenses, and Magic Minutes machines set up shop.

Reached by phone, Café 21 would not tell Free Times whether it has any Magic Minutes machines in the café.

Councilwoman Val Hutchinson’s motion for a 30-day moratorium on the business licenses failed, 5-6. Those in favor of the moratorium were Norman Jackson, Val Hutchinson, Joyce Dickerson, Gwen Kennedy and Jim Manning.

http://www.free-times.com/index.php?cat=1992209084141467&act=post&pid=11860706123186069