Murphy – The uninformed were greeted by locked doors when they tried to patron local sweepstakes facilities over the last two weeks.
“Just utter disappointment,” business owner “Gunny” Watson said when describing their faces. “Most of that traffic [at the place next to me] came from Georgia, not here. ... That was part of the problem. There were some Murphy folks there, but for the most part they were all coming out of Georgia.”
Police issued shutdown notices to 12 gaming facilities last month after an undercover operation revealed a majority of the businesses were paying out cash to patrons. The letters informed the business owners that they could face criminal charges, even if they stopped paying out cash, because a N.C. Supreme Court decision handed down earlier this year ruled that an internet sweepstakes system propagated by a company called Crazie Overstock LLC is illegal.
The various gaming facilities in Cherokee County were marketed as “sweepstakes” or “adult arcades'' and contained slot machines similar to a typical casino, allowing patrons to win merchandise or points that could then be traded or redeemed for cash. The location next to Watson’s business on U.S. 64 West was billed as a “skill room,” a claim many of these types of businesses throughout the state used to avoid shutdown for years prior to the Supreme Court’s ruling.
The gaming facilities, some of which operated around the clock, drew a clientele that had little respect for other businesses in the area. Merchants told the Cherokee Scout they consistently found trash outside their stores each morning.
“[They’re] just not good for business,” Watson said, adding that the owner of the location next to his store tried to help but could only do so much. “I've had [older folks] pull in that parking lot and call my number because they were nervous about getting out of their car and coming into my store.”
Watson, who served 20 years in the U.S. Marine Corps, learned carpentry skills by working in his father’s cabinet shop. He moved to Cherokee County by way of central Georgia about eight years ago and opened Gunny’s Cabin Furniture in 2018.
“I would come home on leave for 30 days and, gosh, you could make more money in 30 days doing that than you could in 12 months on active duty,” Watson said about his early carpentry experience. “That went on for quite a number of years.”
He later built bars and restaurants for a company based in Atlanta before buying property in Cherokee County. Today, Watson owns everything he needs to create custom furniture.
“I have my own sawmill; I do my own kiln dry; I produce my own lumber; I don't buy anything from any building supply except for hardware,” Watson said. “I build everything outright below retail. There is no such thing as more money for a custom build because everything is custom built.”
While Watson and other merchants located near former gaming facilities are experiencing a period of relative peace, it’s unclear how long that may last. Officials say one of the gaming companies that operated in Cherokee County verbally notified the sheriff’s office of its intent to seek an injunction, which would allow them to continue operating until the matter is heard in local court.
As of the Scout’s press time Tuesday, no such injunction has been ordered, and all the gaming businesses in the county remain closed following an Aug. 26 deadline to do so. However, a legal fight may not be needed to reopen if a proposal by state lawmakers clears legislative hurdles.
Lawmakers proposed a plan last week to legalize slot machines and other video gaming machines in North Carolina. House Bill 954 would allow select licensed providers to offer video lottery terminals, and a percentage of the revenue would go to the state.