Superior Court of Guilford County in the Hest case rules part of 14-306.4 to be unconstitutional and dissolves the injunction preventing enforcement of the gambling laws against owners and operators of plaintiffs’ sweepstakes systems. Both parties appeal. During the same month, the Sandhill trial court determined that 14–306.4 was constitutional, dismissed the complaint in its entirety, and dissolved Sandhill’s preliminary injunction.
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House Bill 80 > 14-306.4
N.C. General Assembly enacted House Bill 80 which is now codified as 14–306.4. Thus, effective December 1, 2010, NC outlawed the use of an “entertaining display” to promote a sweepstakes. According to the NC Supreme Court: “In an effort to curtail the use of a perceived loophole in the State’s gambling laws, the General Assembly passed N.C.G.S. § 14–306.4…” Hest and Sandhill amended their complaints to include a claim that 14-306.4 is unconstitutional.
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Burke County Injunction
On May 13, 2010, several operators receive an injunction in Burke County Superior Court against various defendants regarding sweepstakes systems using telephone time. The plaintiffs’ systems were identical or substantially similar to the Sandhill system.
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Hest & IIT Clarifications
On March 26, 2010, Hest and IIT receive a clarification to their earlier injunction.