Administrative — Gaming Machines – Chance & Dexterity – Unlawful Sweepstakes

In the two video games that customers can play at plaintiff’s retail establishments, the second game involves skill or dexterity; however, the extent to which a customer is able to win more than a minimal amount of money is controlled by the outcome of the first game, which is a game of chance. Luck is so inherent in the nature of plaintiff’s games that chance necessarily predominates over the exercise of skill or dexterity. Plaintiff’s “Rewards Program” therefore represents the type of gaming enterprise that the General Assembly intended to prohibit by enacting G.S. § 14-306.4.

Plaintiff’s Rewards Program constitutes an unlawful sweepstakes in violation of § 14-306.4. There is no need for the Court of Appeals’ remand to superior court for consideration of other issues. We thus modify and affirm the Court of Appeals’ decision.

Crazie Overstock Promotions, LLC v. State (Lawyers Weekly No. 010-063-21, 25 pp.) (Sam Ervin, J.) (Philip Berger, J., not participating) Appealed from the Superior Court in Alamance County (Vince Rozier, J.) On discretionary review from the Court of Appeals. Keith Anthony and William Brian for plaintiff; Olga Vysotskaya de Brito, Ryan Park and James Doggett for the state; Edmond Caldwell, Matthew Boyatt, Fred Baggett and Jim O’Neill for amici curiae. 2021-NCSC-57