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Towns, county move to limit sweepstakes cafes
(N.C. Institute of Government)
The move by the two municipalities follows on the heels of the Nags Head and Dare County, which have already adopted zoning changes to control the proliferation of electronic gaming sites locally.
Last spring, the North Carolina Court of Appeals ruled that the state’s previous prohibition on electronic gaming was unconstitutional. Under the ruling however, local governments are permitted to regulate the cafes and gaming terminals.
Several cafes have opened in Moyock near the state line to draw customers from Virginia, which has banned the machines, as well as local customers.
Users of the terminals pay for time on the Internet, primarily to use gaming sites. Proponents say winners are chosen randomly, much the same as lotteries or sweepstakes promotions by stores and product manufacturers. As such, the machines are not used for gambling, they argue.
Some communities have welcomed the opportunity to collect more taxes and fees.
Legislators added a ban the machines in 2010 as their popularity grew following a state prohibition on video poker in 2006.
Kill Devil Hills town planners are slated to make recommendations to the planning board tonight to allow the cafes as an accessory use to existing businesses in the town’s commercial and light industrial zones.
Proposed regulations also limit the number of cafes to two per business or business complex. In addition, on-premise alcohol consumption would be prohibited within the gaming operation area.
“Aside from the fact that people can lose a lot of money playing them, police and sheriff’s departments are concerned about the creation of targets for criminal activity,” Assistant Planning Director Meredith Guns wrote in a memo to the planning board. “By the nature of the games, some people will play these machines for long periods of time ,and loitering or long-term parking may pose a problem for some sites.”
The proposed changes closely mirror regulations in Nags Head and unincorporated Dare County.
If the planning board backs the proposal, town Board of Commissioners will then consider it for adoption. The town would charge businesses with cafes a privilege license tax of $1,500 per machine per year if the changes are adopted.
In Kitty Hawk, the Town Council is expected to consider the proposed amendments to its zoning ordinance during an Oct. 1 public hearing. The amendments would allow such cafes in the community shopping mall/center district, which is from Home Depot to Wal-Mart. Planning Director Joe Heard said it also includes adjacent parcels along U.S. 158.
The council recently denied a text amendment application submitted by the manager of Wink’s to allow electronic gaming operations as a conditional use in the Beach Commercial zoning district.
Heard said the beach road grocery store was cited in April for having the Internet sweepstakes terminals at the store because it was not a permitted use.
Following denial of the Wink’s request, Town Attorney Steve Michael recommended the town adopt standards outlining where and under what conditions cafes could be established.
Under the proposal, an electronic gaming operation could only be an accessory business use and could not exceed 10 percent of the gross floor area of the principal business use. Only two machines per business would be allowed and would be limited to one player at a time. The gaming area would also have to be visually separated from the principal business use by a wall.
Also, outside signs advertising the operation would be prohibited ,and hours of the electronic gaming operation would be limited from 8 a.m. to 12 a.m. Monday through Saturday.
The possibility of charging a fee for the machines would be a separate action by the council, according to Heard.
Under the Kitty Hawk proposal, any gaming operations could not be located within 500 feet in any direction from a school, day care center, religious institution, public park or other gaming operation.
Dare County commissioners adopted standards for Internet sweepstakes cafes in August. They allow for the cafes as an accessory use in the majority of commercial districts in unincorporated Dare County and East Lake.
Because the county doesn’t have the same tax authority as the municipalities, Dare County Planning Director Donna Creef said businesses that fall within the unincorporated area are charged $50 per machine, per year.
In Nags Head, commissioners adopted zoning changes to allow the gaming operations in the C-3 district as an accessory use with no more than two machines per business. The district includes the industrial areas off of Lark Street and Satterfield Landing Drive, said Planning Director Elizabeth Teague.
Teague said two businesses in Nags Head that have Internet sweepstakes terminals, the gas station known as Ms. Owens, and the bowling alley.
The town charges a fee of $2,500 per machine.
Southern Shores and Duck have not adopted any regulations on electronic gaming operations, according to town officials.
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Steve says:
These are such an eyesore in Moyock. I just hope they don’t spread further…
...... says:
Just another way to spend money you don’t have in the quest to hit the jackpot.
Lemonshirt says:
What’s the big deal? The court has ruled this a legal business. Why do local governments feel they have to levy a heavy fee in order to “regulate” these enterprises.
Better than putting up another Wings!!
ekim says:
REGULATE REGULATE REGULATE!!!! Iam not A gamblin man buuuuut ,We dont need GOV in every part of our LIVES, When is enough ENOUGH!!! If someone whants to smoke drink or gamble its NOBODYS BIZ!! Whats next??
Bill says:
ekim, I usually disagree with you most of the time, but in this case I am with you. As Lemon noted, “What is the big deal?!”
I really see no reason why these machines require a ban or “regulation?” If people want to spend their money on them, so be it.
SM says:
Mostly, I just think they’re trashy. We have enough tacky, classless displays here. Not a legitimate reason to ban, of course.
Mark says:
The State needs to get on board to running a state operated video slots. I come from WV where all video poker machines are tied into a central office. That way the state knows exactly what taxes are going to be coming in. In WV any establishment that serves beer, wine, and liquor can have video poker machines as long as they are in a separated room of the bar. They have signs on the doors for age requirement and a gambling help hotline. NC needs to call them for what they are and if we allow them then it would be much needed tax revenue. They are not “paying for internet time” they are gambling. You can call a sheep a goat but its still a sheep. Jump on board and help the state economy!
Mark says:
Also if they are regulated (taxed) that money can be combined with scratch-off, power-ball, mega millions ect. for NC Education Lottery. Use that money for sports, music, and other vocational programs that have been cut in the state budget.
cm says:
They will fit in perfectely with all the trashy looking businesses in Kitty Hawk and Kill Devil Hills and also the 5 million power line poles.
KDH Rezident Evil says:
The problem is gambling, like cocaine and heroin, is a leisurely pleasure for some and a serious addiction for others. These machines are like leaving loaded syringes laying around for any junkie to use. Sure, they probably get their fix in some way some how, but why sanction it? And, as the pro-dope crowd often argues, why not tax it if you are going to legalize it?
These aren’t 1980′s era Pac-Man machines stuck in the corner of a pizza joint that suck in a few quarters a day from those with a urge for nostalgia. They’re money makers and a $50/year tax bite is frankly ridiculous.
obxer says:
Most people think of the Outer Banks as family friendly and this does not seem to be a place to take your family. Also, they just have a trashy look to them. You know that no good can come out of that place. Just a money pit where they will lose more than they win.
sandy 30+ says:
so bingo at the church or fire dept. is ok!lottery is ok!50\50 & raffles for any benefit is ok but a 60 year old who doesn’T BOOGIE BOARD or surf or fly kites or fish or hang out at cheap loud bars w/ prositutes can”t take his $10 and play some silly game!get a life!worry more about the giant drug problems ,thefts,child molesters,prostitutes,gang activities in every town in dare county.sure make sure each town regulates reasonably but don”t take a few of us seniors fun away!
sandy 30+ says:
by the way many people say these sweepstakes games promote crime.wendys was robbed,tj”s was shot up,walgreens was robbed,should they be shut down
bobby d says:
if you look at the places where these cafes are popular and ask ourselves if we want the beach to resemble these towns, the answer is a clear and sound NO… i don’t care for the beach to resemble moyock or elizabeth city. i have a hard time understanding how these places drive any business for the local area and usually associate them with slums and would support any measure to keep them as far from the beach as possible. it hurts the people around here and the overall image of the outer banks as a whole, and in these difficult times, our image can’t afford to be blemished.
Just saying says:
KDH Rezident Evil said…”The problem is gambling, like cocaine and heroin, is a leisurely pleasure for some and a serious addiction for others”.
Don’t blame the beer because a man is a alcoholic. Don’t regulate me just because someone else doesn’t have enough self-control to stay away from the machines.
If you have so little self-control that you cannot help yourself from going over to a machine and placing money into it, then that is a YOU problem not a ME problem.
Why should everyone else be penalized because of the actions of a few. People need to take responsibilities for their own actions.
KDH Rezident Evil says:
@Just Saying:
I don’t disagree with you in principal. I just think there are lines that we draw in just about every level of society where your concept could be broadly applied and it is a question of whether or not this should be a line we draw.
For example, there are probably 14-and-15-year-olds mature enough to safely drive a car, but we say 16 is the magic number to achieve responsibility, thereby “penalizing” everyone.
Pseudoephedrine, legitimately used in cold medicine, became such a popular ingredient illegal drugs (meth) that we’re now restricted to how much cold medicine we can purchase at a time, “penalizing” people who have raging head colds who don’t want to run to the pharmacy every other day to re-up on their Nyquil.
There are licence requirements for fishing, gun sales, hunting; permits to sell food, drive on the beach; age restrictions for alcohol; height requirements for rides at the carnival…Many of these things are a societal exertion of control of some form or another. Some the majority agree with, others not so much. Most are “penalizing” some group in some way: some flat out saying “we don’t trust ____ to do ____” even though there are plenty of examples of people mature/responsible enough to do _______.”
I’m a responsible dog owner and walk with extra plastic poop bags. However, having trod upon enough dog turds on the beach, I realize not everyone exercises the same measure of care when walking their dog. I’m not happy about restricting the times I can visit the beach with my four legged friends, since I’m a responsible dog owner, but I understand why certain towns have enacted restrictions on when the dogs can be out on the sand.
So it comes down to the community’s willingness to accept or reject where we want to draw those lines, and with the gambling machines, I think they are a vice we can do without.
concernedcitizen says:
Dare and all the localities should go a step further and insure that we don’t get a bunch of Payday Loans or anything like them down here either. Remember how nice Chesapeake used to be just 10 years ago? Now look at some areas of it around Indian River Road: every other block has a gambling parlor or a payday, and lots of pawn shops.
Am I trying to be snobby? You’re dang right I am! We don’t need that crapola down here. If you’re a senior citizen and you’re bored and ya feel like ya gotta go gamble some o’ that retirement money away, why not take the money, donate it to a worthy cause and use your extra time to help out some of the young people around here that you know could use it? Shameless. And I’m not a church-going man. And I’m almost a senior, so I’ve got a right to say that Sandy30+. What really needs to happen around here is more community involvement, which includes volunteer work, mentoring by seniors, and a very serious attitude about finding money for free education for the youth and the 20-,30-, and 40-somethings around here.
The OBX is at a crossroads right now – the citizens are the ones that can decide how it’s going to play out: are we gonna let it turn in to Daytona Beach or are we gonna stand up and say “enough is enough”? There’s a lot of work to be done. It’s not all about putting things in place that’ll squeeze every dime out of the real-estate down here: for every action, there’s an equal and opposite reaction.
Forget political parties when you vote next month: cast your ballot for the candidate that’s gonna try and maintain long-held values and help our youth and jobless with real action plans that will work and be good for the long haul. Everyone commenting on this issue that’s concerned about the future of OBX and its residents needs to go research your local and state candidates who are up for election. That’s the first step…then get involved. And help someone out. And start writing your state senators (there’s only 2 of ‘em) and tell them to get that gambling-cafe-disguised-as-an-internet-cafe and anything like it off the border – we don’t want it up there either.
NIMBY is what I say on this issue.
ekim says:
Sorry R E your WRONG !
Jon says:
Just about anything that helps the bowling alley is good with me. The Mohrs do a lot of good things for the community. The machines there are in a separate room, you don’t even notice them unless you go looking for them. Which I don’t, because I like to bowl more than play video games, gambling or otherwise.
Wingman says:
Did anyone ever think that perhaps a lot of it comes down to image? Would Wings be quite as objectionable if they had decent buildings sized to fit better and employed calmer qualities of color, signage and lighting. Talk about bars. Look at Kelly’s. I am sure that there is as much craziness there as anywhere. But look at it, well manicured, an architrectural scheme that fairly shouts Outer Banks and tasteful signage. What goes on there? Who knows? If you don’t go there you shouldn’t be concerned.
Internet cafes? Again if they didn’t look so sleazy would you care if they were there? How about all of our cities that have casinos? Are they bad? If it is something that someone enjoys and no one else is affected then who is to judge?
We have a Pawn shop, which I suppose to some is a lower form of financial institute. Their building and signage doesn’t shout tackiness. Is this a problem? Tax and regulate. We can have the Outer Banks as it was and can still be or we can have Myrtle or Virginia Beach. We are probably all much the same. If we can’t legislate out all the crap, maybe it can be packaged better.