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Judiciary committee moves to close perceived "Internet sweepstakes" loophole; advances bill 17–2
Summary
After debate over process and requests for more testimony, the Senate Judiciary Committee voted 17–2 to report a bill clarifying that Internet sweepstakes machines that mimic video‑poker devices are not legal in establishments that sell alcohol, following law‑enforcement testimony about seizures and magistrate rulings.
The Senate Judiciary Committee voted to give a favorable report to legislation aimed at closing what proponents described as a loophole allowing Internet sweepstakes machines to operate like banned video‑poker devices in alcohol‑serving establishments.
Sponsor testimony and subcommittee briefing said the bill clarifies that those machines are not lawful in bars, restaurants or convenience stores that sell beer or wine because Title 12's prohibition on video poker and Title 61's alcohol provisions should not create a gap. The subcommittee reported conflicting magistrate rulings and told the committee that law enforcement agencies — including the attorney general’s office and the State Law Enforcement Division (SLED) — had urged a statutory fix.
Members noted SLED has pursued seizures of these devices; committee discussion referenced testimony that seizures upheld in magistrate courts and that SLED had been involved in seizing more than 1,000 machines in prior enforcement actions. Opponents and some senators asked for additional time to allow owners and affected businesses to testify, noting that prior subcommittee meetings occurred during a holiday period, but supporters said the issue had already been vetted last year and the House previously passed related language.
The bill narrows its focus to closing the alleged Title 61/12 loophole rather than undertaking comprehensive reform of all sweepstakes devices; sponsor said the narrow change would "shut this down before you get into any more creative loopholes." The committee debated procedural motions to carry the bill over for more input but ultimately proceeded to a vote. The Judiciary Committee recorded a favorable report by vote of 17 to 2 and will send the bill to the Senate floor for further consideration.
