Doubling Down: A News13 Special Report



  FLORENCE- Sweepstakes machines and cafes are popping up daily across South Carolina, leaving law enforcement officers and lawmakers in a rush to try and determine their legality.The devices allow players to make donations or purchase phone cards or internet access time on the computer terminals, which are then used as gaming credits.As customers play the games, they either win or lose credits. If they win credits, they can use them to continue playing the games or can turn them in for cash.Though some magistrate judges have ruled that the machines are legal, many lawmakers, including the head of the State Law Enforcement Division, believe the sweepstakes machines are simply skirting the law."We’ve got complaints again, like we did in the 90’s," said SLED Chief, Mark Keel, referring to the complaints received during the height of video poker in South Carolina."I got a complaint from a sheriff recently about a wife that called and said  that her husband was basically gambling away his entire paycheck,” Keel continued.He said complaints and questions about the machines are a daily occurrence at SLED and said that his office has been working closely with the SC Attorney General's Office to try and determine exactly what can be done.While two proposals do exist that could potentially close the loophole allowing the machines, some cities and counties have already taken steps to either ban sweepstakes devices or deny business permits to those wanting to operate sweepstakes cafes.Those behind the games say though, that there have been several rulings that determined that the sweepstakes devices are legal and say the funds raised, go to charity.One of the major manufacturers of the devices, Hest Technologies of Texas, supplies some of the machines used inside stores and cafes in South Carolina.Their representatives point to judgments made by some magistrate court officials, that determined that the devices were legal."Following a thorough analysis of the system, and feedback from meetings attended by South Carolina officials, we have and do deem the HEST sweepstakes system to comply with South Carolina statutes pertaining to gambling and gambling devices," said Hest Technologies Inc. spokesperson Shannon Canard, in an email statement sent to News13. "As to how the sweepstakes works, it works as any other sweepstakes does following all rules and regulations: it is simply a marketing tool to promote goods and/or services. In our case, we promote the solicitation of donations on behalf of a South Carolina registered charity, Skyeward Bound Ranch (SBR). SBR raises funds to benefit terminally ill children, as well as severely disabled children.  The funds raised in South Carolina are returned to the families in the state, in the form of grants and services, etc," Canard continued.While owners of sweepstakes cafes as well as those who manufacture and distribute the machines say the devices are not a form of gambling, some customers disagree."You just put the money in the machine and cut the machine on and go with the guidelines," said sweepstakes customer Stephanie Samuel.When asked if she believed that the sweepstakes machines are a form of gambling, Samuel replied, "Yes, it is."Another customer who did not want to be identified, said she thought the sweepstakes machines were exciting and did not hesitate to say that she felt they were a form of gambling."It's basically the same thing as gambling, you can win money, you can lose it...I feel it's no different from the (video poker) machines," the customer said."If they banned the machines, they ought to ban this too," she continued.Keel said that his office is working with lawmakers to try and determine exactly what can be done to crack down on the issue and says that until the laws change, law enforcement officers' hands are pretty much tied."Anytime there's as much money in something as there is in this, you know, people will always try to see if there's a loophole in the law and will try to go through that loophole," Keel said.He said that there is a constant cat-and-mouse game between some business owners and law enforcement when it comes to creating new devices that skirt the law and said he fears that this may not be the last of what he sees as another incarnation of video poker."Unless a specific law gets passed that really outlines exactly what is allowed and what's not allowed...I could see where we'd be fighting this battle two or three years from now," Keel said.There are two current pieces of legislation that would potentially impact the sweepstakes machines, if passed into law.Senate bill S.1065 would clarify what are and are not legal devices and House bill H.3545 would place restrictions specifically on what lawmakers call games of chance, including sweepstakes.The Senate bill was referred to a Senate Subcomittee on Jan. 17.The House bill was referred to a House Judiciary Committee on Feb. 2.