In South Carolina, U.S., video gambling and online casino gambling are deemed illegal.  So when South Carolina Magistrate Judge, Robert Davenport Jr., ruled for 544 seized video machines (most of which were internet and online sweepstakes terminals) to be destroyed, the verdict came as no surprise.  The owner of the terminals - Game Systems Inc - has denied any involvement in offering illegal online casino and video gambling, and says the company only offers prepaid Internet cards, catering to low income families.

However, Judge Davenport, seems to think otherwise.  Shortly after a state campaign to raid businesses offering the video machines (which involved thirteen raids and the seizure of 464 machines), Judge Davenport denied a request by Game Systems attorney's to return the machines, and ordered that all the terminals be destroyed by a July 5, 2006 deadline.  After a second request to spare the machines, Judge Davenport upheld his initial decision. Davenport defended his decision by saying that Game Systems failed to prove that purchasers of the cards were actually using them for their intended use - gaining access to the internet.  Rather, he said that customers were re-upping their cards in order to gain points which allowed them to participate in video gambling very similar to contemporary online casino gambling.

Game Systems admits they were offering internet cards that enabled customers to accumulate free points which could be used to gamble online.  However, all earnings were converted to points, which could then be used to redeem prizes. Unlike online casino gambling in which players use real money to make bets, this system was intended to be an online sweepstakes, if you will.

However, rather than buying the cards to gain internet access (only five cents per minute), low income customers were purchasing the cards to simply gain casino gambling credits in order to win prizes.  This is precisely what Judge Davenport says was the basis for confiscating the machines.  When it became clear that customers were re-upping their cards time and again, and participating in the online casino gambling sweepstakes, something needed to be done.  Although lawyers for Game Systems say they are considering an appeal, they would need to do so by July 5, after which time all of the machines will be destroyed.