Society & Politics

The Problem With Sweepstakes Parlors

The Problem With Sweepstakes Parlors
In North Carolina a new trend is popping up that was once banned but Is now rising thanks to a temporary order till the Supreme Court of North Carolina can make an ultimate decision. Sweepstakes parlors or Internet cafes were a big business in the state from 2005-2013 when the Attorney General and now governor of North Carolina Roy Cooper made them illegal due to gambling laws in the state. But if the lottery and Bingo are legal in NC why are sweepstakes parlors a problem?

1. They regularly evade taxes

in North Carolina and most states any money over $600 has to be taxed an reported to the IRS and state revenue offices. However the parlors have a rule that if a customer wins they only pay $500 a day and if they win more than that they have to collect the next day. They do this to avoid being regulated by the department of revenue and the IRS

2. They run under the guise of Skill Arcades or Internet Cafes.

Normally when you think of skill arcades you think of Chuck E Cheese or a crane machine. But an Internet cafe should also be a coffee shop type place where you can relax and use the Internet publicly. But, these are actually names that these sweepstakes parlors hide under. In many ways that can lead to false advertising or deception. Even gas stations and restaurants are installing slot machines in North Carolina. They are also a big deal in Ohio and Florida as well.

3.They prey on the most vulnerable of people.

The elderly, college students, low income neighborhoods, and single parents are some of the clientele of these houses of gambling. They advertise big payouts with the hopes of winning. Sure they may win for a while but ultimately they lose it all over again. Some people might say yeah well bingo and the lottery and Tribal Casinos have the same odds. But those establishments appeal to everyone of legal age. Sweepstakes parlors are often put in low income neighborhoods or strip malls to appeal to certain clientele such like certain advertisements on Maury,Jerry Springer, and other daytime TV talk shows advertise to a certain demographic.

Im not trying to say gambling is all bad. I mean yes a couple of bucks for a scratch off or a bingo game is ok and I don’t even think sweepstakes should be banned. But I think it should be regulated by the state or Tribes who have these parlors. And if anyone does win over $600 they shouldn’t try to hide it from the IRS or Dept of Revenue. If the State of North Carolina is going to embrace gambling they need to do their part to see it is done in a manner which is not seedy, but it’s also up to the parlors to work with the demands of the state.

The Problem With Sweepstakes Parlors
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