Hillsborough to Increase Internet Parlor Privilege License Fees

March 29, 2012

The advent of electronically conducted sweepstakes has created unique challenges for law enforcement agents across the country. While on the surface internet parlors may seem to be legit, there are underlying suspicions of consumer fraud or deceptive trade practices being committed by these parlors. One way of legally curbing the increase of sweepstake parlors, is to severely increase the business licensing fees associated with the operation of these parlors to the point that owners would be forced out of business.

Hillsborough town board unanimously voted to drastically increase the licensing fees for internet parlors. Whereas in the past, sweepstake parlors had to pay $500 each year for the Hillsborough, NC business license, they will now have to pay an annual $2,500 per machine plus $5,000 for each parlor location. Town staff are hoping that the bloated fees will cause the parlors to close or move elsewhere.

Erin Wiltgen reports in the News of Orange County that some business owners and residents have expressed reservations about the strong stance the town has taken in increasing the internet parlor business license fees.

Board member Brian Lowen explains the board’s position in relation to the increase in internet parlors.

“This whole thing with the sweepstakes is becoming, it’s highly addictive,” he said. “People who make the least amount of money are going to these things looking for this quick fix. They want to suddenly become rich, and it’s not going to happen. They just keep putting every little bit of their money. ... Is it our place to control that? Maybe, maybe not, but if we’re in a position to do something to stop any more from opening up—it’s a gambling issue. It really is.”

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