Judiciary committee backs bill to close loophole on internet sweepstakes machines, rejects industry's request for delay

The Senate Judiciary Committee on Tuesday voted 17–2 to report Senate Bill 3 favorably to the full Senate after hearing testimony and debate aimed at clarifying that internet sweepstakes machines are not lawful in locations that sell alcohol.

Sponsor remarks and subcommittee testimony framed the bill as closing a Title 61/Title 12 loophole that some magistrate rulings had exploited. "This legislation just says that there is no loophole," the sponsor said, adding testimony from law-enforcement witnesses that seized machines had been upheld in most magistrate courts.

Committee members debated procedure after an industry representative asked for more comprehensive reform and suggested more stakeholders should have an opportunity to testify. One senator urged carrying the bill over to permit more input; the sponsor and others argued the current measure was a targeted fix that had already been vetted in prior sessions.

Committee discussion cited law-enforcement seizure activity and magistrates' rulings. A committee member summarized testimony he said came from the South Carolina Law Enforcement Division and the attorney general's office that seizures of these machines had been upheld in magistrate courts, and the chair noted SLED had seized more than 1,000 machines in enforcement activity presented to the committee.

After debate, the committee approved a favorable report on the bill by voice/hand count; the chair announced the tally as 17 in favor and 2 opposed, and the bill will move toward floor consideration. A written minority report by one senator was announced as expected.