Skill Gaming Ruling Could Reduce Online Casino Cannibalization in North Carolina
By
Jerry Smith
Staff Writer
Updated: 01/17/2025
Jerry’s greatest advantage is his extensive experience on the casino floor. His time as a casino manager taught him everything about what makes a player tick. Besides being a skilled poker player, he has deep knowledge of all live table games and gambling regulations in the US.
Skill Games Ruling in North Carolina
A court appeal has been ruled in favor of a ban affecting a company running ‘skill games’ in North Carolina.
On the last day of 2024, a North Carolina Court of Appeals panel of judges gave a decision to law enforcement agents of Robeson County who are banning unlicensed electronic gaming machines, that skill games are outside the scope of regulated gambling in the state.
Rulings Against Gaming Operator
No Limit Games is a company that has been operating electronic gaming machines in many private businesses within the county’s borders. In May 2023, the company said that any attempts to stop the terminals were not allowed because the games replicated video sweepstakes which are authorized in North Carolina.
Back then the trial court agreed with this and granted an injunction blocking enforcement actions against its operations in the county. However, it did not end there and the appellate court intervened against that order in September 2023.
On the last day of 2024, a panel came to a majority opinion that No Limit Games’ terminals represent unlicensed gambling because prizes from these games are determined by chance. Because of this, law enforcement can take action against No Limit Games and similar companies which are engaging in the same kind of activities. The counsel for No Limit Games stated,
The company intends to appeal the decision made on 31 December 2024.
The debates surrounding these games are not only in North Carolina, but other states are faced with the same question. These games that are known as games of chance, also incorporate a level of skill.
’Skill games’ Are a Hot Topic in Other States Too
Apart from being the topic of conversation in North Carolina, the issue of ‘skill games’ is ongoing in other states too. In May 2024, Virginia vetoed a bill that would regulate these machines, keeping a status quo in which the terminals are vulnerable, and operators are subject to criminal prosecution.
There has also been a ban on this type of gaming in Kentucky. The legality surrounding similar games is a question that the Pennsylvania Supreme Court has needed to address numerous times as well.
The situation is not ideal for the companies operating these machines, but could be beneficial for other entities in the industry, including companies operating online casinos.
Even though the regulation of online casinos wasn’t a large consideration when drafting the 2023 law that saw online sports betting being brought to North Carolina, it doesn’t mean that the conversation will not evolve again. If it does come about, the lack of ‘skills games’ in North Carolina would mean one less obstacle in the way.