The state defines gambling as “operating a game of chance or playing at or betting on any game of chance at which money, property, or other thing of value is bet, whether the same be in stake or not.” Consequently, the local authorities are free to prosecute individual internet players, even though the Old North State doesn’t explicitly prohibit iGaming. Participating in unlawful gambling as a player is considered a Class 2 misdemeanor and carries a maximum penalty of 60 days in jail and a $1,000 fine.
All North Carolina gambling regulations can be found in the North Carolina Revised Statutes, Article 37: Lotteries, Gaming, Bingo, and Raffles. The minimum gambling age is 18 for lottery and 21 for casino games.
Over the years, North Carolina maintained a very conservative and strict attitude towards gambling. It was the last state on the East Coast to open a lottery, and it never legalized horse or dog racing. Even the compact NC signed with the Cherokees after the federal government passed the Indian Gaming Regulatory Act in 1988 put some questionable constraints on the Indians.
The tribe was only allowed to operate one casino equipped exclusively with slots and video poker games. Fortunately, the state was forced to renegotiate this compact in 2012 due to financial difficulties, allowing the Indians to build a new casino and expand their game selection to include live dealer table games.
There are no state-sanctioned online gambling sites in North Carolina, and the definition of unlawful gambling is broad enough to make playing on offshore platforms risky.
Section 14 of the North Carolina code makes it illegal for anyone to operate any unregulated games of chance that involve money. The state doesn’t have an exemption for home games, and taking part in an unlawful game is considered a Class 2 misdemeanor. However, state regulations never refer specifically to online gambling – and if that wasn’t enough, the state simply doesn’t go after people who frequent offshore casino sites, poker rooms or sportsbooks. Consequently, most people never bother with the nuances of the North Carolina law and simply enjoy the action on one of their favorite sites.
Both of the tribal casinos are operated by Harrah’s. The first, Harrah’s Cherokee Hotel and Casino, is located in Cherokee and hosts over 3,000 slots on its gambling floor. The second, Harrah’s Cherokee Valley River Casino and Hotel is situated in Murphy and is three times smaller. Both casinos also allow their customers to play several classic table games, such as blackjack or roulette. Legal online casino options are limited to international social sites such as Zynga or Double Down Casino.
The only legal way to play live poker in North Carolina is by visiting Harrah’s Cherokee Hotel and Casino, which hosts a 20-table, tobacco-free poker room. The second casino doesn’t offer poker at all. Online poker can’t be legally played for real money in North Carolina – much like local casino enthusiasts; poker fans are stuck with play money sites.
If you get caught playing on an offshore site, claiming that poker is a game of skill and therefore isn’t covered by the general gambling ban isn’t going to save your skin. This argument was already made in 2004 by Howard Fierman, a businessman who filed an injunction against the North Carolina Attorney General, who prevented him from opening a poker club in Raleigh. Fierman lost the case in both the Durham County Superior Court and the North Carolina Court of Appeals, which concluded that “chance predominates over skill in the game of poker, making that game a game of chance under NC. General Statute 14-292 (2005).”
North Carolina doesn’t allow any sports betting, including wagering on dog or horse races and placing online bets via offshore sites. Nevertheless, the Supreme Court’s decision to strike down the 1992 federal ban on sports betting cleared the way for North Carolina’s legislature to introduce this gambling form to the state. While there are many reasons to be skeptical, local lawmakers already caved into financial pressures once in 2012, and sports betting would undoubtedly generate plenty of additional tax revenue for the state. Unfortunately, even if such an expansion successfully passes in 2019 or 2020, it would almost certainly be limited to land-based betting at the local tribal gambling venues.
The DFS situation in North Carolina is complicated. Major DFS sites such as FanDuel or DraftKings offer their services to North Carolina residents, claiming that they aren’t violating any laws as the games they offer are 100% skill-based. This interpretation seems dubious given North Carolina’s stance on poker, but the DFS operators’ point of view is shared by Rep. Jason Saine, who introduced a bill legalizing DFS contests in 2017.
The proposed legislation failed to gain the House Regulatory Reform Committee’s approval, but Rep. Saine didn’t give up and made a new attempt in 2018. This time, his bill (HB 279) managed to reach the House Judiciary Committee. Unfortunately, Rep. Saine decided to withdraw it when Rep. Bert Jones proposed an amendment that would drop the part stating that DFS contests aren’t a form of gambling. This decision killed any chances of fantasy sports legalization in North Carolina. Even worse, the state may soon take action against DFS operators, which would most likely force them out of the local market.
As mentioned, North Carolina was the last state on the East Coast to establish a lottery – the necessary amendment was passed in a referendum in 2005, and the first tickets were sold in 2006. Fortunately, multi-state draw games are available, so residents have access to Mega Millions and Powerball. The lottery is not authorized to sell tickets online, which means that local lotto enthusiasts can only purchase them from licensed land-based retailers.
Bingo in North Carolina is available exclusively as a charity game, and the maximum prize cannot exceed $500 per game or $1,500 per session ($2,500 if there’s only one session per week). Regulated online bingo isn’t available at all, and playing on offshore sites constitutes unlawful gambling.
§ 14-7.20. Continuing criminal enterprise.
(a) Any person who engages in a continuing criminal enterprise shall be punished as a Class H felon and in addition shall be subject to the forfeiture prescribed in subsection (b) of this section.
(b) Any person who is convicted under subsection (a) of this section of engaging in a continuing criminal enterprise shall forfeit to the State of North Carolina:
(1) The profits obtained by the person in the enterprise, and
(2)Any of the person’s interest in, claim against, or property or contractual rights of any kind affording a source of influence over, such enterprise.
(c) For purposes of this section, a person is engaged in a continuing criminal enterprise if:
(1)The person violates any provision of this Chapter, the punishment of which is a felony; and
(2)The violation is a part of a continuing series of violations of this Chapter:
a. Which are undertaken by the person in concert with five or more other persons with respect to whom the person occupies a position of organizer, a supervisory position, or any other position of management; and
b. From which the person obtains substantial income or resources.
SUBCHAPTER XI. GENERAL POLICE REGULATIONS.
Article 37. Lotteries, Gaming, Bingo and Raffles.
Part 1.Lotteries and Gaming.
North Carolina has passed legislation providing for a State lottery. The text of the engrossed act is available online at http://www.legislature.state.nc.us/sessions/2005/lottery/fulllotterybill.pdf
§ 14-289.Advertising lotteries.
Except as provided in Chapter 18C of the General Statutes or in connection with a lawful raffle as provided in Part 2 of this Article, if anyone by writing or printing or by circular or letter or in any other way, advertises or publishes an account of a lottery, whether within or without this State, stating how, when or where the same is to be or has been drawn, or what are the prizes therein or any of them, or the price of a ticket or any share or interest therein, or where or how it may be obtained, he shall be guilty of a Class 2 misdemeanor. News medium as defined in G.S. 8 53.11 shall be exempt from this section provided the publishing is in connection with a lawful activity of the news medium.
§ 14-290.Dealing in lotteries.
Except as provided in Chapter 18C of the General Statutes or in connection with a lawful raffle as provided in Part 2 of this Article, if any person shall open, set on foot, carry on, promote, make or draw, publicly or privately, a lottery, by whatever name, style or title the same may be denominated or known; or if any person shall, by such way and means, expose or set to sale any house, real estate, goods, chattels, cash, written evidence of debt, certificates of claims or any other thing of value whatsoever, every person so offending shall be guilty of a Class 2 misdemeanor which may include a fine not to exceed two thousand dollars ($2,000). Any person who engages in disposing of any species of property whatsoever, including money and evidences of debt, or in any manner distributes gifts or prizes upon tickets, bottle crowns, bottle caps, seals on containers, other devices or certificates sold for that purpose, shall be held liable to prosecution under this section. Any person who shall have in his possession any tickets, certificates or orders used in the operation of any lottery shall be held liable under this section, and the mere possession of such tickets shall be prima facie evidence of the violation of this section. This section shall not apply to the possession of a lottery ticket or share for a lottery game being lawfully conducted in another state.
§ 14-291.Selling lottery tickets and acting as agent for lotteries.
Selling lottery tickets and acting as agent for lotteries.
Except as provided in Chapter 18C of the General Statutes or in connection with a lawful raffle as provided in Part 2 of this Article, if any person shall sell, barter or otherwise dispose of any lottery ticket or order for any number of shares in any lottery, or shall in anywise be concerned in such lottery, by acting as agent in the State for or on behalf of any such lottery, to be drawn or paid either out of or within the State, such person shall be guilty of a Class 2 misdemeanor.
§ 14-291.1.Selling “numbers” tickets; possession prima facie evidence of violation.
Except in connection with a lawful raffle as provided in Part 2 of this Article, if any person shall sell, barter or cause to be sold or bartered, any ticket, token, certificate or order for any number or shares in any lottery, commonly known as the numbers or butter and egg lottery, or lotteries of similar character, to be drawn or paid within or without the State, such person shall be guilty of a Class 2 misdemeanor. Any person who shall have in his possession any tickets, tokens, certificates or orders used in the operation of any such lottery shall be guilty under this section, and the possession of such tickets shall be prima facie evidence of the violation of this section.
§ 14-291.2.Pyramid and chain schemes prohibited.
(a) No person shall establish, operate, participate in, or otherwise promote any pyramid distribution plan, program, device or scheme whereby a participant pays a valuable consideration for the opportunity or chance to receive a fee or compensation upon the introduction of other participants into the program, whether or not such opportunity or chance is received in conjunction with the purchase of merchandise. A person who establishes or operates a pyramid distribution plan is guilty of a Class H felony. A person who participates in or otherwise promotes a pyramid distribution plan is deemed to participate in a lottery and is guilty of a Class 2 misdemeanor.
(b) “Pyramid distribution plan” means any program utilizing a pyramid or chain process by which a participant gives a valuable consideration for the opportunity to receive compensation or things of value in return for inducing other persons to become participants in the program; and “Compensation” does not mean payment based on sales of goods or services to persons who are not participants in the scheme, and who are not purchasing in order to participate in the scheme.
(c) Any judge of the superior court shall have jurisdiction, upon petition by the Attorney General of North Carolina or district attorney of the superior court, to enjoin, as an unfair or deceptive trade practice, the continuation of the scheme described in subsection (a); in such proceeding the court may assess civil penalties and attorneys’ fees to the Attorney General or the District Attorney pursuant to G.S. 75 15.2 and 75 16.1; and the court may appoint a receiver to secure and distribute assets obtained by any defendant through participation in any such scheme. The clear proceeds of civil penalties provided for in this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C 457.2.
(d) Any contract hereafter created for which a part of the consideration consisted of the opportunity or chance to participate in a program described in subsection (a) is hereby declared to be contrary to public policy and therefore void and unenforceable.
Except as provided in Chapter 18C of the General Statutes or in Part 2 of this Article, any person or organization that operates any game of chance or any person who plays at or bets on any game of chance at which any money, property or other thing of value is bet, whether the same be in stake or not, shall be guilty of a Class 2 misdemeanor. This section shall not apply to a person who plays at or bets on any lottery game being lawfully conducted in any state.
[Editor’s note: Chapter 18C authorizes the North Carolina state lottery and Part 2 authorizes various aspects of charity gaming. As to the latter, see North Carolina Charitable Gaming Laws.]
§ 14-293.Allowing gambling in houses of public entertainment; penalty.
Except as provided in Chapter 18C of the General Statutes, if any keeper of an ordinary or other house of entertainment, or of a house wherein alcoholic beverages are retailed, shall knowingly suffer any game, at which money or property, or anything of value, is bet, whether the same be in stake or not, to be played in any such house, or in any part of the premises occupied therewith; or shall furnish persons so playing or betting either on said premises or elsewhere with drink or other thing for their comfort or subsistence during the time of play, he shall be guilty of a Class 2 misdemeanor. Any person who shall be convicted under this section shall, upon such conviction, forfeit his license to do any of the businesses mentioned in this section, and shall be forever debarred from doing any of such businesses in this State. The court shall embody in its judgment that such person has forfeited his license, and no board of county commissioners, board of town commissioners or board of aldermen shall thereafter have power or authority to grant to such convicted person or his agent a license to do any of the businesses mentioned herein.
§ 14-294.Gambling with faro banks and tables.
If any person shall open, establish, use or keep a faro bank, or a faro table, with the intent that games of chance may be played thereat, or shall play or bet thereat any money, property or other thing of value, whether the same be in stake or not, he shall be guilty of a Class 2 misdemeanor.
§ 14-295.Keeping gaming tables, illegal punchboards or slot machines, or betting thereat.
If any person shall establish, use or keep any gaming table (other than a faro bank), by whatever name such table may be called, an illegal punchboard or an illegal slot machine, at which games of chance shall be played, he shall be guilty of a Class 2 misdemeanor; and every person who shall play thereat or thereat bet any money, property or other thing of value, whether the same be in stake or not, shall be guilty of a Class 2 misdemeanor.
§ 14-296.Illegal slot machines and punchboards defined.
An illegal slot machine or punchboard within the contemplation of G.S. 14-295 through 14-298 is defined as a device where the user may become entitled to receive any money, credit, allowance, or any thing of value, as defined in G.S. 14-306.
§ 14-297.Allowing gaming tables, illegal punchboards or slot machines on premises.
If any person shall knowingly suffer to be opened, kept or used in his house or on any part of the premises occupied therewith, any of the gaming tables prohibited by G.S. 14-289 through 14-300 or any illegal punchboard or illegal slot machine, he shall forfeit and pay to any one who will sue therefor two hundred dollars ($200.00), and shall also be guilty of a Class 2 misdemeanor.
§ 14-298. Seizure of Illegal Gaming Items.
Upon a determination that probable cause exists to believe that any gaming table prohibited to be used by G.S. 14 289 through G.S. 14 300, any illegal punchboard or illegal slot machine, or any video game machine prohibited to be used by G.S. 14 306 or G.S. 14 306.1A, or any game terminal described in G.S. 14 306.3(b) is in the illegal possession or use of any person within the limits of their jurisdiction, all sheriffs and law enforcement officers are authorized to seize the items in accordance with applicable State law. Any law enforcement agency in possession of that item shall retain the item pending a disposition order from a district or superior court judge. Upon application by the law enforcement agency, district attorney, or owner, and after notice and opportunity to be heard by all parties, if the court determines that the item is unlawful to possess, it shall enter an order releasing the item to the law enforcement agency for destruction or for training purposes. If the court determines that the item is not unlawful to possess and will not be used in violation of the law, the item shall be ordered released to its owner upon satisfactory proof of ownership. The foregoing procedures for release shall not apply, however, with respect to an item seized for use as evidence in any criminal action or proceeding until after entry of final judgment.
§14 299. Property exhibited by gamblers to be seized; disposition of same.
Except as provided in Chapter 18C of the General Statutes or in G.S. 14 292, all moneys or other property or thing of value exhibited for the purpose of alluring persons to bet on any game, or used in the conduct of any such game, including any motor vehicle used in the conduct of a lottery within the purview of G.S. 14 291.1, shall be liable to be seized by any court of competent jurisdiction or by any person acting under its warrant. Moneys so seized shall be turned over to and paid to the treasurer of the county wherein they are seized, and placed in the general fund of the county. Any property seized which is used for and is suitable only for gambling shall be destroyed, and all other property so seized shall be sold in the manner provided for the sale of personal property by execution, and the proceeds derived from said sale shall (after deducting the expenses of keeping the property and the costs of the sale and after paying, according to their priorities all known prior, bona fide liens which were created without the lienor having knowledge or notice that the motor vehicle or other property was being used or to be used in connection with the conduct of such game or lottery) be turned over and paid to the treasurer of the county wherein the property was seized, to be placed by said treasurer in the general fund of the county.
§ 14-300.Opposing destruction of gaming tables and seizure of property.
If any person shall oppose the destruction of any prohibited gaming table, or the seizure of any moneys, property or other thing staked on forbidden games, or shall take and carry away the same or any part thereof after seizure, he shall forfeit and pay to the person so opposed one thousand dollars ($1,000), for the use of the State and the person so opposed, and shall, moreover, be guilty of a Class 2 misdemeanor.
§ 14-301.Operation or possession of slot machine; separate offenses.
It shall be unlawful for any person, firm or corporation to operate, keep in his possession or in the possession of any other person, firm or corporation, for the purpose of being operated, any slot machine or device where the user may become entitled to receive any money, credit, allowance, or any thing of value, as defined in G.S. 14-306.Each time said machine is operated as aforesaid shall constitute a separate offense.
§ 14-302.Punchboards, vending machines, and other gambling devices; separate offenses.
It shall be unlawful for any person, firm or corporation to operate or keep in his possession, or the possession of any other person, firm or corporation, for the purpose of being operated, any punchboard, slot machine or device where the user may become entitled to receive any money, credit, allowance, or any thing of value, as defined in G.S. 14-306.Each time said punchboard, slot machine or device where the user may become entitled to receive any money, credit, allowance, or any thing of value, as defined in G.S. 14-306 is operated, played, or patronized by the paying of money or other thing of value therefor, shall constitute a separate violation of this section as to operation thereunder.
§ 14-303.Violation of two preceding sections a misdemeanor.
A violation of any of the provisions of G.S. 14-301 or 14-302 shall be a Class 2 misdemeanor.
§ 14-304.Manufacture, sale, etc., of slot machines and devices.
It shall be unlawful to manufacture, own, store, keep, possess, sell, rent, lease, let on shares, lend or give away, transport, or expose for sale or lease, or to offer to sell, rent, lease, let on shares, lend or give away, or to permit the operation of, or for any person to permit to be placed, maintained, used or kept in any room, space or building owned, leased or occupied by him or under his management or control, any slot machine or device where the user may become entitled to receive any money, credit, allowance, or any thing of value, as defined in G.S. 14-306.
§ 14-305.Agreements with reference to slot machines or devices made unlawful.
It shall be unlawful to make or permit to be made with any person any agreement with reference to any slot machines or device where the user may become entitled to receive any money, credit, allowance, or any thing of value, as defined in G.S. 14 306 pursuant to which the user thereof may become entitled to receive any money, credit, allowance, or anything of value or additional chance or right to use such machines or devices, or to receive any check, slug, token or memorandum entitling the holder to receive any money, credit, allowance or thing of value.
§ 14-306.Slot machine or device defined.
(a) Any machine, apparatus or device is a slot machine or device within the provisions of G.S. 14-296 through 14-309, if it is one that is adapted, or may be readily converted into one that is adapted, for use in such a way that, as a result of the insertion of any piece of money or coin or other object, such machine or device is caused to operate or may be operated in such manner that the user may receive or become entitled to receive any piece of money, credit, allowance or thing of value, or any check, slug, token or memorandum, whether of value or otherwise, or which may be exchanged for any money, credit, allowance or anything of value, or which may be given in trade, or the user may secure additional chances or rights to use such machine, apparatus or device; or any other machine or device designed and manufactured primarily for use in connection with gambling and which machine or device is classified by the United States as requiring a federal gaming device tax stamp under applicable provisions of the Internal Revenue Code. This definition is intended to embrace all slot machines and similar devices except slot machines in which is kept any article to be purchased by depositing any coin or thing of value, and for which may be had any article of merchandise which makes the same return or returns of equal value each and every time it is operated, or any machine wherein may be seen any pictures or heard any music by depositing therein any coin or thing of value, or any slot weighing machine or any machine for making stencils by the use of contrivances operated by depositing in the machine any coin or thing of value, or any lock operated by slot wherein money or thing of value is to be deposited, where such slot machines make the same return or returns of equal value each and every time the same is operated and does not at any time it is operated offer the user or operator any additional money, credit, allowance, or thing of value, or check, slug, token or memorandum, whether of value or otherwise, which may be exchanged for money, credit, allowance or thing of value or which may be given in trade or by which the user may secure additional chances or rights to use such machine, apparatus, or device, or in the playing of which the operator does not have a chance to make varying scores or tallies.
(b) The definition contained in subsection (a) of this section and G.S. 14-296, 14-301, 14-302, and 14-305 does not include coin-operated machines, video games, pinball machines, and other computer, electronic or mechanical devices that are operated and played for amusement, that involve the use of skill or dexterity to solve problems or tasks or to make varying scores or tallies and that:
(1)Do not emit, issue, display, print out, or otherwise record any receipt, paper, coupon, token, or other form of record which is capable of being redeemed, exchanged, or repurchased for cash, cash equivalent, or prizes, or award free replays; or
(2)In actual operation, limit to eight the number of accumulated credits or replays that may be played at one time and which may award free replays or paper coupons that may be exchanged for prizes or merchandise with a value not exceeding ten dollars ($10.00), but may not be exchanged or converted to money.
(c) Any video machine, the operation of which is made lawful by subsection (b)(2) of this section, shall have affixed to it in view of the player a sticker informing that person that it is a criminal offense with the potential of imprisonment to pay more than that which is allowed by law. In addition, if the machine has an attract chip which allows programming, the static display shall contain the same message.
(d) The exception in subsection (b)(2) of this section does not apply to any machine that pays off in cash. The exemption in subsection (b)(2) of this section does not apply where the prizes, merchandise, credits, or replays are (i) repurchased for cash or rewarded by cash, (ii) exchanged for merchandise of a value of more than ten dollars ($10.00), or (iii) where there is a cash payout of any kind, by the person operating or managing the machine or the premises, or any agent or employee of that person. It is also a criminal offense, punishable under G.S. 14-309, for the person making the unlawful payout to the player of the machine to violate this section, in addition to any other person whose conduct may be unlawful.
§ 14 306.1. (Repealed effective July 1, 2007) Types of machines and devices prohibited by law; penalties.
(a) Ban on New Machines. – It shall be unlawful for any person to operate, allow to be operated, place into operation, or keep in that person’s possession for the purpose of operation any video gaming machine as defined in subsection (c) of this section unless either:
(1) Such machine was:
a. Lawfully in operation, and available for play, within this State on or before June 30, 2000; and b. Listed in this State by January 31, 2000 for ad valorem taxation for the 2000 2001 tax year; or (2) Such machine is within the scope of the exclusion provided in G.S. 14 306(b)(1).
(b) (Effective until March 1, 2007) Prohibition of More Than Two Existing Video Gaming Machines at One Location. – It shall be unlawful for any person to operate, allow to be operated, place into operation, or keep in that person’s possession for the purpose of operation at one location more than two video gaming machines as defined in subsection (c).
(b) (Effective March 1, 2007) Prohibition of More Than One Existing Video Gaming Machine at One Location. – It shall be unlawful for any person to operate, allow to be operated, place into operation, or keep in that person’s possession for the purpose of operation at one location more than one video gaming machine as defined in subsection (c).
(c) Definitions. – As used in this section, a video gaming machine means a slot machine as defined in G.S. 14 306(a) and other forms of electrical, mechanical, or computer games such as by way of illustration:
(1) A video poker game or any other kind of video playing card game.
(2) A video bingo game.
(3) A video craps game.
(4) A video keno game.
(5) A video lotto game.
(6) Eight liner.
(7) Pot of gold.
(8) A video game based on or involving the random or chance matching of different pictures, words, numbers, or symbols not dependent on the skill or dexterity of the player.
For the purpose of this section, a video gaming machine is a video machine which requires deposit of any coin, token, or use of any credit card, debit card, or any other method that requires payment to activate play of any of the games listed in this subsection. The enumeration of games in the list in this subsection does not authorize the possession or operation of such game if it is otherwise prohibited by law.
For the purpose of this section, a video gaming machine includes those that are within the scope of the exclusion provided in G.S. 14 306(b)(2), but does not include those that are within the scope of the exclusion provided in G.S. 14 306(b)(1).
(d) Age Requirement. – It shall be an infraction for any person under the age of 18 years to play any video gaming machine defined in subsection (c) of this section. It shall be unlawful for the operator of the video gaming machine to knowingly allow a person under the age of 18 years to play any video gaming machine as proscribed by this subsection.
(e) Hours of Operation. – It shall be unlawful to operate or allow the operation of any video gaming machine during the hours of 2:00 A.M. Sunday through 7:00 A.M. Monday.
(f) Plain View. – Any video gaming machine available for operation shall be in plain view of persons visiting the premises.
(g) Advertising Prohibited. – It is unlawful to advertise the operation of video gaming machines by use of on premise or off premise signs.
(h) Proximity to Other Locations Regulated; Permanent Building Required. – Each location where it is lawful to operate any video gaming machines as defined in G.S. 14 306.1(c) shall be at least 300 feet in any plane from any other location where such machines are operated. For the purpose of this section, a location is a permanent building having, or being within, a single exterior structure. Notwithstanding this subsection, two or more places where video gaming machines were lawfully operated under separate ownership on June 30, 2000, shall be considered to be separate locations more than 300 feet from each other, regardless of the distance from each other or whether they are located in the same building or edifice. Video gaming machines as defined in G.S. 14 306.1(c) may be operated only within permanent buildings.
(i) Registration With Sheriff. – No later than October 1, 2000, the owner of any video game which is regulated by this section shall register the machine with the Sheriff of the county in which the machine is located using a standardized registration form supplied by the Sheriff. The registration form shall be signed under oath by the owner of the machine. A material false statement in the registration form shall subject the owner to seizure of the machine under G.S. 14 298 in addition to any other punishment imposed by law. At a minimum, the registration form shall require that the registrant provide evidence of the date on which the machine was placed in operation, the serial number of the machine, the location of the facility at which the machine is operated, and the name of the owner of the facility at which the machine is operated. Each Sheriff shall report to the Joint Legislative Commission on Governmental Operations no later than November 1, 2000, on the total number of machines registered in that county, itemizing how many locations have one, two, or three machines. No machine may be moved from its registered location except in conjunction with the activities described in subsections (l) and (m) of this section.
(j) Report on Receipts and Prizes and Merchandise Awarded. – The owner of each machine or the agent of that owner shall report each calendar quarter to the Department of Revenue, under oath on a form provided by that Department, the total amount of gross receipts itemized by each machine, the number of machines at that location, and the total value of prizes and merchandise awarded to players of each machine at that location. The report shall be filed by the fifteenth day of the month after the quarter ends. Failure of the owner or agent to timely file the required report, or filing a report containing a material false statement shall subject the owner of the machine to seizure of the machine under G.S. 14 298 in addition to any other punishment imposed by law. Upon request of the Sheriff of the county, the Department of Revenue shall forward a copy of the report to the Sheriff of the county where the machines are located. The Department of Revenue shall compile the reports and make a summary report each quarter to the Joint Legislative Commission on Governmental Operations.
(k) Report to 2001 Session. – The North Carolina Sheriffs’ Association, Inc., after consultation with the Division of Alcohol Law Enforcement, and the Conference of District Attorneys of North Carolina, shall report to the Joint Legislative Commission on Governmental Operations no later than January 1, 2001, its estimates of the costs of the registration process and the cost of enforcement of this section, along with suggested fees to make the registration and enforcement self supporting, and recommendations as to a system with registration at the State level and primary enforcement at the local level. Such fee schedule is not effective until approved by the General Assembly.
(l) Exemption for Certain Machines. – This section shall not apply to:
(1) Assemblers, repairers, manufacturers, sellers, lessors, or transporters of video gaming machines who assemble, repair, manufacture, sell, lease, or transport them for use out of state, or (2) Assemblers, repairers, manufacturers, sellers, lessors, or transporters of video gaming machines who assemble, repair, manufacture, sell, or lease video gaming machines for use only by a federally recognized Indian tribe if such machines may be lawfully used on Indian land under the Indian Gaming Regulatory Act.
To qualify for an exemption under this subsection, the machines must be disabled and not operable, unless the machines are located on Indian land where they may be lawfully operated under a Tribal State Compact.
(m) Ban on Warehousing. – It is unlawful to warehouse any video gaming machine except in conjunction with the activities permitted under subsection (l) of this section.
(n) Exemption for Activities Under IGRA. – This section does not make any activities of a federally recognized Indian Tribe unlawful or against public policy, which are lawful for any federally recognized Indian Tribe under the Indian Gaming Regulatory Act, Public Law 100 497.
(o) No Local Preemption. – This section does not preempt any more restrictive ordinance lawfully adopted under Article 18 of Chapter 153A of the General Statutes or under Article 19 of Chapter 160A of the General Statutes.
(p) No person who has been convicted:
(1) Once under G.S. 14 309(a) may possess any video gaming machine as defined in G.S. 14 306.1 for a period of one year.
(2) Twice under G.S. 14 309(a) may possess any video gaming machine as defined in G.S. 14 306.1 for a period of two years.
(3) Three or more times under G.S. 14 309(a) may possess any video gaming machine.
(q) Not Legalizing Unlawful Activity. – This section does not make lawful any activity which is currently unlawful
14 306.2. (Effective until July 1, 2007) Violation of G.S. 14 306.1 a violation of the ABC laws.
A violation of G.S. 14 306.1 is a violation of the gambling statutes for the purposes of G.S. 18B 1005(a)(3). (2000 151, s. 2.)
§ 14-306.2.Violation of G.S. 14-306.1 a violation of the ABC laws.
A violation of G.S. 14-306.1 is a violation of the gambling statutes for the purposes of G.S. 18B-1005(a)(3). (2000-151, s. 2.)
§ 14-307.Issuance of license prohibited.
There shall be no State, county, or municipal tax levied for the privilege of operating the machines or devices the operation of which is prohibited by G.S. 14-304 through 14-309.
§ 14-308.Declared a public nuisance.
An article or apparatus maintained or kept in violation of G.S. 14-304 through 14-309 is a public nuisance.
§ 14-309.Violation made criminal.
(a) Any person who violates any provision of G.S. 14 304 through 14 309 is guilty of a Class 1 misdemeanor for the first offense, and is guilty of a Class H felony for a second offense and a Class G felony for a third or subsequent offense.
(b) Notwithstanding the provisions of subsection (a) of this section, any person violating the provisions of G.S. 14 306.1A involving the operation of five or more machines prohibited by that section is guilty of a Class G felony.
(c) Notwithstanding the provisions of subsection (a) of this section, any person violating the provisions of G.S. 14 306.3(b) involving the possession of five or more machines prohibited by that subsection is guilty of a Class G felony.
§ 14-309.1.Defense to possession; antique slot machines.
(a) In any prosecution for possession of a slot machine or device as defined in G.S. 14-306, it is a defense that the slot machine was not intended to be used in the operation or promotion of unlawful gambling activity or enterprise and that the slot machine is an antique. For purposes of this section a slot machine manufactured 25 years ago or earlier is conclusively presumed to be an antique.
(b) When a defendant raises the defense provided in subsection (a), any slot machine seized from the defendant shall not be destroyed or otherwise altered until a final court determination is rendered. If the court determines that the defense has been proved the slot machine shall be returned immediately to the defendant. (1979, 2nd Sess., c. 1090.)
Click here for Part 2: North Carolina Charitable Gaming Laws
§ 16-1. Gaming and betting contracts void.
All wagers, bets or stakes made to depend upon any race, or upon any gaming by lot or chance, or upon any lot, chance, casualty or unknown or contingent event whatever, shall be unlawful; and all contracts, judgments, conveyances and assurances for and on account of any money or property, or thing in action, so wagered, bet or staked, or to repay, or to secure any money, or property, or thing in action, lent or advanced for the purpose of such wagering, betting, or staking as aforesaid, shall be void.
§ 19-1.What are nuisances under this Chapter.
(a) The erection, establishment, continuance, maintenance, use, ownership or leasing of any building or place for the purpose of assignation, prostitution, gambling, illegal possession or sale of alcoholic beverages, illegal possession or sale of controlled substances as defined in the North Carolina Controlled Substances Act, or illegal possession or sale of obscene or lewd matter, as defined in this Chapter, shall constitute a nuisance.
(b) The erection, establishment, continuance, maintenance, use, ownership or leasing of any building or place wherein or whereon are carried on, conducted, or permitted repeated acts which create and constitute a breach of the peace shall constitute a nuisance.
(b1) The erection, establishment, continuance, maintenance, use, ownership or leasing of any building or place for the pirpose of carrying on, conducting, or engaging in any activities in violation of G.S. 14-72.7.
(c) The building, place, vehicle, or the ground itself, in or upon which a nuisance as defined in subsection (a), (b), or (b1) of this section is carried on, and the furniture, fixtures, and contents, are also declared a nuisance, and shall be enjoined and abated as hereinafter provided
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