South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. Fountain of Luck, Inc., and A&E Distribution, Inc.

South Carolina Department of Revenue

South Carolina Department of Revenue

Fountain of Luck, Inc., and A&E Distribution, Inc.

For the Petitioner: Carol I. McMahan, Esquire

For the Respondent A&E Distribution, Inc.: Elizabeth Crum, Esquire and Wayne Covert, Esquire

For Respondent Fountain of Luck: Richard Harpootlian (Fredrick Harris counsel of record)



This matter comes before me upon a Motion to Stay the effect of this Court's Final Order and Decision in the above-captioned matter pending judicial review, pursuant to S.C. Code Ann. § 1-23-380(A)(2) (Supp. 1997) and ALJD Rule 29(D), filed by Respondent A&E Distribution, Inc. At the motion hearing, Respondent Fountain of Luck, Inc. joined in the motion. South Carolina Department of Revenue (hereinafter referred to as "DOR") opposes the stay motion. Pursuant to Rule 29(D), ALJD Rules of Procedure, an administrative law judge has the authority to stay the effect of a final order shich is subject to judicial review. A stay does not, however, alter the time for filing a petiton for judicial review. At any time prior to the filng of a petition for judicial review, a party may move this court to stay a final order upon appropriate terms. This Court's Final Order and Decision in the above-captioned matter was filed December 31, 1997. To date, no petition for appeal to circuit court has been filed; however, Respondents inform the court that they intend to appeal and that the time for appeal has not yet expired.

In the Final Order and Decision in this video poker violation case filed December 31, 1997, retail operator Fountain of Luck, Inc. was found to have violated R. 117-190 and Section 12-21-2804. The ten machine licenses were revoked, the operation of machines were prohibited in the subject game rooms for a period of six months, and a fine of $5,000 is imposed upon Fountain of Luck, Inc. Respondent A&E Distribution, Inc. was fined $2,500 for a violation of Section 12-21-2748.

In the absence of a stay, Respondents claim that they will suffer irreparable harm through loss of revenue. Respondents also point to the potential for the South Carolina Supreme Court to decide material and novel issues in the case of Gateway Enterprises, Inc. v. DOR which may have an impact upon one or several issues in the present case.

DOR asserts that the effect of the Final Order and Decision inthis matter does not prevent the machine owers from relicincning the machines and placing them in another location, nor does it prevent the retail operator from using the business premises for any purpose other than operation of Class III video game machines. Additionally, DOR maintains that the issuance of a stay would thwart its efforts to regulate the video gaming industry and enforce the gambling laws of this State.

Generrally, final





December 31, 1997

Columbia, South Carolina

Brown Bldg.






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