Local law enforcement admits that sweepstakes parlors have become targets for violent crimes. Investigators attribute this to the large amounts of cash they hold and their late-night hours of operation.
Despite these risks, estimates suggest there are over a hundred such establishments in Wake County, and their numbers continue to grow.
These venues are known by various names, including sweepstakes parlors, internet cafes, or business centers.
Cumberland County, Burlington, and Greensboro have all banned them.
“We’re in the casino on Avent Ferry Road by the DMV, and we have a robbery… Two guys came in here with masks on and started shooting. Everybody all right, y’all?” This was a 911 call from a sweepstakes robbery on March 17th.
We reached out to the Raleigh Police Department and the state for a specific list of sweepstakes parlors in the city. It turns out they don’t keep such records, as these businesses don’t need to be licensed.
We requested calls for service over the past six months for 11 of these businesses. Each had dozens of incidents, ranging from break-ins to disturbances to assaults.
“For years, we’ve heard complaints from law-abiding citizens and family members,” said Eddie Caldwell, Executive Vice President and General Counsel for the NC Sheriffs’ Association.
However, cracking down on these establishments is more challenging than it seems.
“If it’s a pay-to-play game and you’re wagering credits, betting on several hands of play, and there’s an element of chance involved, with cash payouts for credits won, then it would be an unlawful gaming operation,” explained Chris Poole, head of the state’s ALE Gaming Unit.
Poole stated that games of chance are illegal, and businesses often try to circumvent the law by claiming there’s a skill component involved.
“If you have a game of chance and then add a component of skill, that does not make the game of chance legal in North Carolina,” Poole emphasized.
“They have to go undercover, play the machines, and be equipped with the necessary equipment to record what the machines are doing because the DA needs that evidence to prosecute the case,” Caldwell said.
This process requires time and resources. On the state level, Poole only has four agents.
“There’s no regulation done on any of these sweepstakes parlors or gaming locations,” Poole noted.
The manager of a sweepstakes parlor off Spring Forest Road agreed to speak with us if we did not identify him.
“People might look at this and say you’re taking advantage of people and that there’s no real oversight over these places?” asked our reporter Amy Cutler. “Would you say that about a car dealership too?” he responded.
“The types of games played in these parlors change constantly, and the potential revenue from the sweepstakes industry and gaming companies is so significant that they are continually creating new and different games. What we may find illegal today could be completely different tomorrow,” said Freeman.
Freeman added that if they have an investigation they believe will hold up in court, they will pursue it.
In the meantime, local law enforcement remains focused on preventing violent crimes around sweepstakes parlors rather than shutting the businesses down.
