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Committee advances bill to block sweepstakes/video gambling machines in alcohol-serving businesses
Summary
The Judiciary Committee voted to report favorably a bill that would clarify that Internet sweepstakes machines are not legal in establishments that sell alcohol, citing law-enforcement seizures and conflicting magistrate rulings; the vote was 17-2 with a promised minority report.
The Senate Judiciary Committee advanced legislation intended to close a perceived legal loophole that allows Internet sweepstakes and similar video gambling devices to operate in some businesses that sell alcohol. The subcommittee chair summarized testimony and law-enforcement concerns and said the bill would make clear those machines are not lawful in bars, restaurants or convenience stores that serve alcohol.
The subcommittee chair explained the mechanics of the businesses at issue: customers buy Internet time and receive sweepstakes entries that can be converted to prizes or cash via on-site gaming software, sometimes using machines that resemble older video-poker units. That business model, the chair said, has produced contradictory magistrate rulings and prompted requests from the attorney general’s office, SLED and law-enforcement associations to clarify the statute.
Members cited SLED and Attorney General testimony that seizures of machines under existing video-poker statutes have been upheld in magistrate courts in most cases; committee members referenced more than 1,000 machines seized by SLED in enforcement actions. Opponents argued some owners and industry representatives had not had sufficient opportunity to be heard and asked the committee to carry the matter over; proponents said a rapid statutory fix was needed to stop proliferation and creative ‘‘loopholes.’’
After debate the committee voted to give the bill a favorable report by a vote the chair announced as 17 to 2; the chair said a minority report would be filed by the dissenting senator.
Next steps: the committee will transmit a favorable report to the Senate floor where further debate and any amendments may follow.
