More than a few businesses in Scotland County are ready to take a gamble on the success of Internet gaming after a recent change to video poker laws.

Gaming establishments seem to be the county's new cash crop and are sprouting up like weeds since Guilford County Superior Court Judge John O. Craig III ruled in December of 2008 that laws governing video poker do not apply to sweepstakes games.

Wake County Superior Court Judge Howard E. Manning Jr. has also challenged the law, saying the ban must also apply to the casino at the Indian reservation in Cherokee.

Until the issue is resolved, such games are considered legal.

Sheriff Shep Jones said there are at least 35 businesses with Internet sweepstakes games in Scotland County.

"It seems like every empty building now has been filled with one of these Internet sweepstakes games," Jones said. "I've received phone calls from citizens complaining... and I tell them there is nothing we can do about it right now."

The games skirt the video poker laws by having customers pay for Internet access and not for playing the sweepstakes games.

Jones said he is opposed to the practice.

"I've heard spouses say its taking money away from their home and their kids so I am against them 100 percent," he said. "You hear these heartfelt stories about how people are spending money like that. We've actually raided places with food stamp cards so that tells me people are using food stamps to go and gamble."

Jones says he's also worried about an influx of crime at the businesses. He pointed to the robbery at Diamond's gaming establishment a few months ago as an example.

"If they are not managed properly, there is definitely potential for crime," he said. "People are out at all times of night with pockets full of money. The criminal element knows exactly what's going on."

Rep. Garland Pierce also says he is against legalizing any form of gambling.

"I was not a supporter of the lottery," he said.

Pierce said gambling often victimizes those who are already suffering financial hardships.

"A lot of times, the people who play can least afford to play and they are chasing a dream and not reality," he said. "It's been brought to my attention that people lose a lot of money in any kind of gambling and aren't able to take care of their families and have squandered money on games of chance."

The Wagram legislator said the economy has more people looking for an easy solution to their financial problems, including winning big at gambling.

"I think they would probably do better if they saved their money."

He added that patrons have to be losing money, otherwise the owners wouldn't make money.

Pierce says he's had a number of calls about the spread of machines.

"A lot of constituents have called me disenchanted and concerned about it. They were accusing the legislature of allowing this."

He pointed out that the General Assembly has banned video poker and video sweepstakes but the court stay has nullified the bill.

Pierce said it is difficult to create laws on gambling anyway.

"You can not legislate morality. If people want to gamble, they are going to gamble."

Most North Carolinians oppose video poker and a plurality want it banned, according to a poll conducted by Elon University in March.

According to the poll, 52.7 percent oppose video poker while just 29.1 percent support it. The poll also says 45.4 people want it made illegal while 38.3 percent want it legalized.

Sweepstake proponents

But not everyone is opposed.

J.D. Willis, chairman of the county commissioners, said sweepstakes games are not that different from the state-sponsored lottery.

"As far as whether they should be legal or not, it is not for me to say, however, I see no difference in sweepstakes versus the lottery."

Willis said the games don't take advantage of anyone but instead provide people a local way to participate.

"People who want to play the lottery or sweepstakes will play them in North Carolina or they'll go somewhere where they are legal. I think sweepstakes and all other games should have been tied into the state so they could receive tax revenue."

Willis does have ties to the industry.

"I don't own any machines," he said. "I signed the contract to get some machines up and running and that's it."

Chuck Murphy is the owner of Cyber Jolt Internet Coffee House, formerly Kobe's Express. It is one of at least nine facilities with Internet sweepstakes machines from the intersection of Main Street and U.S. 401 to the South Carolina border.

The business used to be Kobe's Express, a Japanese restaurant, before it closed about two-and-a-half years ago. The now abandoned casinos in South Carolina are visible from his parking lot.

Murphy says these businesses are a boon for local employment, something he feels Scotland County needs.

"I employee two good people and I have a couple more coming on."

He says he'll eventually employee seven people.

"I was introduced to [video sweepstakes gaming] by some people out of Texas," Murphy said. "They explained the ins and outs of the business to me and it just seemed like something that made good sense without a whole lot of labor cost."

The low labor costs of the business means more profit, Murphy said.

Murphy said his business does not take advantage of anyone.

"I disagree with it totally. I think it's more about leisure and what people do with their expendable income."

He said there is risk that some of these businesses could exploit people, but sees more risk with the lottery.

"People are less likely to spend their last dollar in one of these places than they are buying a dollar scratch off ticket."

Robert Outlaw owns Carolina Cyber Center, which is across the street from Cyber Jolt.

He says most businesses like his bring people together and serve various interests.

"I had a partner come to me and show me how the games worked and talked to me about getting into it. When I went to the first Internet cafe, there were a lot of people from 18 to 80 that were enjoying the games."

"You can do all kinds of stuff there and its really neat. Its a good environment and you meet a lot of people."

Outlaw was dismissive of critics who say Internet sweepstakes games are immoral.

"They put them down, but you can go in there with $20 and play all day long. Its not that you go in there with $20 and you out in 15 minutes. A lot of older people will come and say its relaxing. It takes a lot off their minds."

He says they can do other things at his business as well, like check their emails.

Outlaw also expressed some confidence that the Internet sweepstakes will remain legal.

"I feel good that they are going to try to regulate it because it will bring in a lot of money for the state of North Carolina, and right now we sure need it."

“We believe the best way to regulate the video gaming industry is to provide government oversight, regulation, structure and taxation,” said William Thevaos, president of the Entertainment Group of North Carolina. “We have now two major court rulings declaring the ban on video gaming unconstitutional and validating the legality of video sweepstakes and ‘Pot of Gold’ games. It’s hard to believe that the Legislature is blind to the fact the courts have opened up the playing rules and video games are going to grow across state again."

“The Entertainment Group of North Carolina is supporting legislation that will regulate this industry and provide a new stream of revenue to the state. We want to be partners with our state government because we too want to continue investing in our classrooms, our hospitals, our highways."

Thevaos says regulating video gaming will clean up the industry and shut down the bad operators.

“This legislation will empower the state to provide accountability, oversight, structure, regulation and taxes from the video gaming industry. When the Governor and the Legislature are struggling everyday to balance the state’s budget, we believe we can offer a solution to put up to $500 million in the budget without raising taxes. We can regulate and tax the industry and that will mean less of a burden on all our citizens. That sounds like a concept that at least deserves a hearing in the State House don’t you think?”