WADESBORO — Most of the gaming facilities in Wadesboro closed after the Wadesboro Police Department sent a notice to owners, cracking down violations of cash payouts with electronic gaming machines.
The police department first sent a notice to owners and operators of the sweepstakes and fish games businesses in town on June 1. It stated that after July 7, the Wadesboro Police Department would begin charging for violations of the statutory ban on electronic gaming machines, which includes electronic sweepstakes machines, video gaming machines and slot machines.
Under North Carolina law, any machine, including fish games and other similar devices, that pays out in cash in any amount is prohibited. It is also prohibited to win award points or credits that are redeemable for cash. Other violations of the law include any machine that accepts eight points or credits during a single round of play and any machine that is operated in connection with a sweepstakes that uses an entertaining display.
A person in violation is guilty of a Class 1 misdemeanor for the first offense, a Class H felony for the second offense and a Class G felony for the third or subsequent offense, according to the notice.
The notice was intended to give owners an opportunity to evaluate their compliance with legal requirements before the police department conducted any criminal proceedings.
“Since then, we understand that many, if not all, of these establishments have closed,” Town Manager David Edwards said in an email. “The WPD will continue to investigate these issues and will undertake any appropriate enforcement action, but the Town is not aware at this time of any criminal proceedings that have been initiated.”
Edwards estimated that a total of nine established in town closed following the notice.
The crack down on the statutes comes after several important decisions from the North Carolina Supreme Court and the Court of Appeals were made in the last few years. The decisions in these cases helped clarify the statutes.
“In light of the recent court decisions and law enforcement concerns about crime associated with electronic gaming establishments, the WPD determined that it would prioritize enforcement in this area, beginning with the public advisory,” Edwards said.
The notice is not linked to the recent town ordinance town council passed on March 13. The ordinance that passed is the set of operating rules for gaming businesses in town. Edwards explained the ordinance does not carry the weight like that of a statute with a criminal penalty.
The ordinance that passed also only applies to new electronic gaming businesses wishing to open within Wadesboro town limits.
Under the ordinance, electronic gaming businesses may not be located within a quarter mile of the property line of any church, house of worship, public or private schools, library, parks, daycare center or residential zoning district. No two electronic gaming businesses can be located within a half mile from each other.
Hours are limited to 10:00 a.m. to 10:00 p.m. and no neon or flashing lights or fluttering devices can be visible from the exterior. Tinted windows or curtains are prohibited under the town ordinance.
The ordinance does require the owner of the business to sign an affidavit stating there will be no cash payouts or promotions, which makes owners aware that in doing so, it is violating a state law.