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22.05.12

A three-judge panel ruled 2-to-1 Tuesday to throw out the 2010 law, which supporters have said was designed to rid another form of video gambling after the General Assembly banned traditional video poker machines in 2007.

Amusement machine companies and two firms that market long-distance phone and Internet services in North Carolina challenged the sweepstakes law, arguing it crosses the line by banning sweepstakes that use “entertaining displays” for people to watch to learn if they’ve won. Trial court judges ruled differently, leading in part to the appeals.

Writing for the majority, Court of Appeals Judge Ann Marie Calabria rejected the state’s argument that eliminating the displays is designed to regulate a certain type of conduct the Legislature finds objectionable. She cited a recent U.S. Supreme Court ruling that video games — like books and movies — are entitled to First Amendment protections.

Under the law, the plaintiffs are still “free to allow anyone to play their video games so long as the video games are not used to conduct or promote sweepstakes,” Hunter wrote. He said he would have upheld the entire law.

Source: Washington Post