With deadline approaching, internet cafes, sweepstakes face tough choices

Published 7:36 pm Friday, June 28, 2019

The clock is ticking for 25 local internet cafes and sweepstakes businesses that were served cease and desist letters by 2nd Judicial District Attorney Seth Edwards this week. Faced with an ultimatum — close down or face criminal charges — the owners of these businesses will face difficult choices in the weeks to come.

NOT ALL THE SAME

While the DA’s actions are all encompassing for sweepstakes and internet cafes in the 2nd Judicial District, one of the business owners, Connie Langley, disagrees with Edwards’ views that sweepstakes and internet cafes inherently attract violent crime.

In the four years since Langley opened Pirates Loot, an internet café on U.S. Highway 264 near the Pitt County line, the business owner says she has only had to call law enforcement on one occasion — following a string of “hole-in-the-wall” burglaries that targeted business throughout eastern North Carolina a few years ago.

Other than that one occasion, Langley says she has never had any trouble at the site. On the contrary, she says the business has allowed her to give back to the community in a number of ways, from donating to local schools to collecting for Hurricane Florence victims.

Overall, she feels as though her business is being unfairly punished for the bad business practices of others, some of which she says allow their patrons to get out of hand and only care about taking money out of the community.

“It’s very disheartening that this is happening,” Langley said. “But I’m doing my research, my attorney is on it, and I’m going to try to figure out a way to stay alive until the actual ruling is made in the State of North Carolina, because they flip-flop so much. There are bills in the (N.C.) House right now that are trying to regulate us, and I don’t want to give up and then have them come back six months from now and say that we can open back up under those terms.”

As for the immediate question of what to do with the machines at Pirates Loot, Langley says she, for one will comply with the cease and desist letter.

“Next week, I’m going to empty this building, and I’m going to put something in here that I know is in compliance with every law, so that there is no question whatsoever about it,” Langley said. “But I will be letting the police department know what I’m doing before I do it. … I’m not trying to go against you, but I’m trying to save my business, and I’m not willing to just throw the towel in.”

At Players Vape, the one location cited in a press release from the DA, store employees say the business should not be viewed as a sweepstakes.

“We’re actually not a sweepstakes location,” said store manager Rose Vaughan. “We don’t have any type of sweepstakes machines in here, no fishing tables, nothing like that. We solely specialize in just vaporizer devices and e-liquid.”

In late March, Players Vape was the scene of a fatal shooting, during which a store employee shot and killed an armed robber at the location. According to police, the location had been successfully robbed only a few weeks earlier.

While he did not confirm whether his firm would be representing any of the businesses served, attorney William Brian, with the Morningstar Law Group, argued that actions taken by DAs and law enforcement throughout the state are designed to protect what he calls an “unconstitutional monopoly” on games of chance through the state lottery. Attorneys from Morningstar recently represented Players Vape during a zoning dispute with the City of Washington.

“The State of North Carolina holds an unconstitutional monopoly on businesses which offer games of chance which is takes advantage of by operating the State Lottery,” Brian wrote in an email. “The State enforces its monopoly through armed forces like the ALE, through the offices of the District Attorneys and through the office of the Attorney General. There is nothing moral or even lawful about the way the State employs these forces. Like the organized crime interests they purport to despise, the armed forces of the State intimidate, raid, and otherwise seek to eliminate small businesses which are doing nothing more dangerous than competing with the State Lottery.”

Attempts to reach other businesses served with letters were unsuccessful as of press time.

AN ISSUE OF PUBLIC SAFETY

Earlier this week, Edwards accompanied North Carolina Alcohol Law Enforcement agents to each of the 25 locations to serve the cease and desist letters — nine in Beaufort County, seven in Martin County, five in Washington County, two in Tyrrell County and two in Hyde County.

In the letters, the businesses were given seven days to cease operation or face criminal charges related to gambling and sweepstakes operations. Electronic sweepstakes, video gaming and slot machines, including so-called “fish games,” were specifically cited.

“It’s one thing to lose an entire paycheck playing these illegal games,” said Edwards, “But it’s another to lose a life. This is no longer just a moral or ethical issue — it has become an issue of public safety and one that cannot be overlooked.”

As of Friday afternoon, Edwards said no charges had been filed yet, and that he had not yet heard from attorneys representing any of the business owners.