I’ve had a number of people ask me what’s going on around the state with internet sweepstakes. Below, I set out what I know, but there’s so much going on in this area that I’m sure I’m missing something. Please add to the knowledge base by posting a comment if you know more. New games. Sweepstakes operators have moved to new software that is designed to fall outside the scope of G.S. 14-306.4. There are at least two basic strategies: Pre-reveal systems. Some operators are using systems that reveal the result of the sweepstakes on the screen before any game simulation appears. (Players often look away during the reveal, or may cover up the area of the screen where the reveal takes place.) These operators contend that because the reveal takes place before the game simulation appears, the sweepstakes is not conducted “through the use of an entertaining display,” and so is not covered by G.S. 14-306.4(b). This local NBC story addresses this approach and notes that Attorney General Roy Cooper takes the position that pre-reveal systems are unlawful. Games of skill. Other operators have focused on the language in the statute that defines a “sweepstakes” as a system for distributing prizes “based upon chance,” G.S. 14-306.4(a)(5), and defines an “entertaining display” as involving a game “not dependent on skill or dexterity,” G.S. 14-306.4(a)(3). These operators use new games designed to incorporate an element of skill. According to some reports that I have heard, the amount of skill required is typically [...]
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