Six sweepstakes software providers have agreed to stop providing equipment and software to Internet cafes in North Carolina, the office of U.S. Attorney Thomas Walker announced Wednesday.
Five of the companies — White Sands Technology, Siera Software, TNT Software, Digital Reveal and Figure 8 Technologies — provide software to more than 600 Internet cafes in the state, the agreement says. The sixth company — HSV Entertainment — operates a city-owned center in Roanoke Rapids, but agreed in April to terminate its lease May 18.
The agreement calls for all companies to cease operations in North Carolina by July 1.
“We hope this action will be a big step forward in ensuring compliance with North Carolina’s gambling laws,” said Walker, who is a federal prosecutor for the Eastern District of North Carolina. “Our office is prepared to assist the state in enforcing large scale violations of the law.”
The agreement says that the software companies or their principals will not be prosecuted for previous use of alleged illegal internet sweepstakes software in internet cafes across the state, according to the announcement. The companies also agreed to give notice to the U.S. Attorney’s Office before taking part in any activities relating to sweepstakes or gambling in North Carolina not covered under the ban. Sweepstakes, according to North Carolina law, is defined to include all games where chance predominates.
“(The) agreement is consistent with our two-faceted, proactive approach to industry compliance that focuses on investigations and liaison activities essential to the enforcement of tax, money laundering, and related financial crimes to combat illegal activity within the gaming industry, as well as to uncover and shutdown illegal gaming operations,” said Thomas J. Holloman III, who is Special Agent in Charge of the Charlotte office of the IRS Criminal Investigation division. “This agreement is a positive step forward in reducing the number of software companies that supply gaming type software crucial to operating internet sweepstakes operations in North Carolina.”
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