The Indiana Gaming Commission is currently being sued by a gambling company in Fort Wayne, which owns terminals used for this form of gaming. Fifty-one gaming machines were seized by Federal Agents, together with $3000. They cite that the state has violated its constitutional rights. The lawsuit was filed this week in Fort Wayne and it is starting to look as though US online gambling operators are starting to fight back.
Buckwheat Holdings, a Florida-based company and owner of the gaming machines; requested that a judge stop any future State action against the company. The machines were so-called ‘Sweepstakes” machines, and the company was apparently warned of the possibility of a raid. On December the 19th 2011, the Indiana Alcohol and Tobacco Commission said that these machines popping up in restaurants, bars and businesses which also sell alcohol is illegal. They also said that businesses such as bars and so on, which are authorized to have pull-tab type games, cannot offer sweepstakes machines.
However, the argument in the lawsuit citation says that the games and prizes on offer are only a means to an end. In other words are not aimed at online gambling, but rather as a means to encourage customers to purchase $5 per hour internet access. These simulated games are similar to McDonald’s Monopoly game where the games reveal sweepstake entries on Internet terminals and are quite simply a promotion to encourage customers to purchase Internet time. Basically customers receive a sweepstakes entry for purchasing time online.
While this could hardly be perceived to be an online gambling activity; currently in the USA, a PC or even a mobile phone could considered to be an ‘illegal’ gambling device if simulated slots or other games of this nature are downloaded and then played. The lawsuit claims however, that both their due process and free speech rights have been violated. In other word they have the right to be free from illegal search and seizure.
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