14-306.3.  Certain game promotions unlawful.

(a)        It is unlawful to promote, operate, or conduct a server-based electronic game promotion.

(b)        It is unlawful for any person to possess any game terminal with a display that simulates a game ordinarily played on a slot machine regulated under G.S. 14-306 or a video gaming machine regulated under G.S. 14-306.1A for the purpose of promoting, operating, or conducting a server-based electronic game promotion.

(c)        As used in this section, "server-based electronic game promotion" means a system that meets all of the following criteria:

(1)        A database contains a pool of entries with each entry associated with a prize value.

(2)        Participants purchase, or otherwise obtain by any means, a prepaid card.

(3)        With each prepaid card purchased or obtained, the participant also obtains one or more entries.

(4)        Entries may be revealed in any of the following ways:

a.         At a point-of-sale terminal at the time of purchase or later.

b.         At a game terminal with a display that simulates a game ordinarily played on a slot machine regulated under G.S. 14-306 or a video gaming machine regulated under G.S. 14-306.1A.

(d)       Upon conviction or plea of guilty, all of the following held by the person shall be automatically revoked:

(1)        A permit issued under Chapter 18B of the General Statutes.

(2)        A contract to sell tickets or shares under Article 5 of Chapter 18C of the General Statutes.

(e)        Nothing in this section shall apply to the form of Class III gaming legally conducted on Indian lands which are held in trust by the United States government for and on behalf of federally recognized Indian tribes if conducted in accordance with an approved Class III Tribal-State Gaming Compact applicable to that tribe as provided in G.S. 147-12(14) and G.S. 71A-8.  (2008-122, s. 1.)