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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. B&L Enterprises d/b/a The Sapphire Room, et al

South Carolina Department of Revenue

South Carolina Department of Revenue

B&L Enterprises d/b/a The Sapphire Room and Royal Room G, James R. McDonald, Jr.,d/b/a McDonald Amusements, and Eugene H. Smith, Inc.




This matter came before the Court from an appeal by the Respondents of a citation issued by the South Carolina Department of Revenue for violations of the Video Game Machines Act ("Act"), S.C. Code Ann. Sec. 12-21-2804(A) (Supp. 1996), on June 13, 1996. The citation issued to Respondents on that date was for violations of the provisions of the Act limiting the licensing and use of five (5) Class III machines per single place or premise. S.C. Code Ann. Section 12-21-2804(A); 27 S.C. Code Regs. Ann. 117-190. The Regulatory Violation and

Assessment Report sought revocation of ten (10) Class III licenses, that no licenses be issued for the operation of machines at "The Sapphire Room" and "Royal Room 'G'" locations for a period of six (6) months, and a monetary penalty in the amount of $5,000 each against each of the Respondents. A final Agency Determination was issued by the Department sustaining the imposition of the fines and penalties assessed in the violation report.

A hearing was scheduled in this matter before the Court on August 25, 1997. Prior to the hearing, an agreement was reached with all parties resolving this matter on the following terms

and conditions:

1. The Coin Operated Device licenses on the machines in question expired on, or prior to, May 30, 1997. The issue of license revocation is therefore moot and no longer at issue.

2. That B&L Enterprises, James R. McDonald d/b/a McDonald Amusements, and/or Eugene H. Smith, Inc. agree not to operate or allow the operation of Class III machines in

rooms and or premises located at 901 Hwy. 17 South Business, Surfside Beach, South Carolina for a period of six (6) months. The aforesaid six (6) month period is effective upon the signing of this Order.

3. In consideration of the above, the Department agrees, pursuant to S.C. Code Ann Section 12-4-320(3) (Supp. 1996) to waive the monetary penalties sought for this violation from each of the Respondents in this case.

4. The parties further agree and understand that this is a compromise and settlement of a contested penalty and is entered by the Department under the authority provided in S.C. Code Ann. Section 12-4-320(3) to compromise such matters.

Having reviewed this agreement and settlement in compromise, and having questioned the parties or their respective counsel regarding the terms thereof, I hereby ORDER its adoption and dismiss the Petition in this matter with prejudice.

______________________________ ____________________________

Jeffrey M. Nelson, Esq. Richard A. Harpootlian, Esq.

Counsel for Regulatory Litigation Attorney for Respondents

Attorney for the Petitioner



Stephen P. Bates

Administrative Law Judge

September 2, 1997

Brown Bldg.






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