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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. AKS Lounge, Inc., d/b/a Brenda's Game Room

South Carolina Department of Revenue

South Carolina Department of Revenue

AKS Lounge, Inc., d/b/a Brenda's Game Room, Chong Sou, Inc., d/b/a Lord Ashley Motel, and New China, Inc. of North Charleston




This matter came before the Court from an appeal of the Respondents of a citation issued by the Petitioner South Carolina Department of Revenue ("Department") against the Respondents for a violation of the Video Games Machines Act ("Act"), S.C. Code Ann. Sec. 12-21-2804(C) (Supp. 1999) occurring on November 16, 1999. The citation issued to Respondents on that date was for a violation of that provision of the Act prohibiting cash payouts to persons under the age of 21 as the result of the operation of machines licensed under S.C. Code Ann. Section 12-21-2702(A)(3). Specifically, the Department alleged that an employee of the Respondent AKS Lounge made a cash payout of $23.65 to an Underage Cooperating Individual ("UCI") at a business owned by an licensed to the Respondent AKS Lounge and doing business as Brenda's Gameroom on that date in violation of Section 12-21-2804(C).

The Regulatory Violation and Assessment Report issued by the Department for this violation sought the revocation of the Respondent AKS Lounge's, d/b/a Brenda's Gameroom, retail sales tax license and the revocation of the four Class III Coin-operated Device licenses in operation in this room and held by the Respondents Chong Sou, Inc. And New China, Inc. A Final Agency Determination was issued by the Department sustaining the imposition of the penalty assessed in the violation report against the Respondents.

A hearing was scheduled in this matter before the Court on July 27, 2000. Prior to the hearing, an agreement was reached between the parties resolving the matter on the following terms and conditions:

1. The Respondents New China, Inc. And Chong Sou, Inc. Agree to the revocation of the four (4) Class III licenses in use at the location on November 16, 1999. These licenses were voluntarily returned by Respondents to the Department of Revenue on May 30, 2000.

2. The Respondent AKS Lounge, Inc. agrees to cease and desist from the use of any and all Class III video game machines at the location and premises doing business as "Brenda's Gameroom" located at 1310 Remount Road in North Charleston, South Carolina for a period of six months from the date of this Order.

3. The Respondent AKS Lounge, Inc. further agrees to the voluntary revocation of Retail Sales Tax License Number 010-59649-2, issued to AKS Lounge for the operation of a location under the name "Brenda's Gameroom", and to remit the license to the Department within fifteen days of the date of this Order.

4. The Department agrees, pursuant to S.C. Code Ann. Section 12-4-320(3) (Supp. 1999), to waive any and all remaining penalties or fines from this violation.

Having reviewed this agreement and settlement in compromise, I hereby ORDER its adoption and dismiss the Petition in this matter with prejudice.

___________________________ _____________________________

Jeffrey M. Nelson Gaines W. Smith

Counsel for Regulatory Litigation ATTORNEY FOR THE RESPONDENTS

P.O. Box 125 P.O. Box 578

Columbia, SC 29214 Charleston, SC 29402

(803)898-5172 (843) 722-7773




Administrative Law Judge

Columbia, South Carolina

July 6, 2000

Brown Bldg.






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