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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. Golden Nugget Saloon, Inc., et al

South Carolina Department of Revenue

South Carolina Department of Revenue

Golden Nugget Saloon, Inc., David C. Brooks, Quinn Marinacci, Rainbow Inn & Deli, Inc., Rainbow Holdings, Inc., James R. McDonald, d/b/a McDonald Amusements, Inc.




This matter was initiated by a citation issued by the South Carolina Department of Revenue ("Department") against Respondents for a violation of the Video Game Machines Act [S.C. Code Ann. Section 12-21-2804(A)(Supp.1996)]. On December 3, 1996, Respondents were cited for operating more than five machines licensed pursuant to S.C. Code Ann. Section 12-21-2720 (A)(3)(Supp. 1996)(commonly referred to as "Class III machines and licenses"), in a single place or premises, in violation of Section 12-21-2804(A) and 27 S.C. Code Ann. Regs. 117-190(Supp. 1996). A Department Determination was issued sustaining the imposition of the violation. The Determination sought revocation of thirty-nine Class III licenses, that no Class III licenses will be allowed for use in the location for a period of six months and a $5,000.00 monetary penalty as to each Respondent (total monetary penalties of $30,000.00).

Prior to the hearing, the parties entered into an agreement resolving the matter. That agreement is incorporated in this Order.

The agreement between the parties is as follows:

1. Respondents admit that on December 3, 1996, at the time of the South Carolina Law Enforcement agent's inspection at 1429 Savannah Highway, Charleston, South Carolina, there were no employees on the premises of the areas doing business as "Rainbow Racing Adventures" (Room #0), "Golden Nugget Saloon" (Room #5), "Goldmine Pizzeria" (Room #6). These areas were operated with retail license numbers 010-568290, 010-588893, and 010-585501, respectively.

2. Respondents further agree to the revocation of Class III license numbers 3807662, 039402, 028822, 028823, 3807661, 028821, 028816, 028814, 028817, 028815, 039827, 039828, 039826, and 039398. As these licenses have expired during the pendency of this appeal, the Department does not require their surrender.

3. Respondents further agree not to operate or allow the operation of any Class III licenses or machines at the physical location of the three areas noted in No. "1" above for a period of six months from October 19, 1998 (these areas are identified as areas "0,", "5," and "6" on the attached diagram).

4. Respondents further agree to remit to the Department a monetary fine in the amount of $1,500.00 ($500.00 for each area in violation), no later than 5:00 p.m., on October 19, 1998.

5. In consideration of the above, the Department agrees to waive the remaining penalties sought for this violation as to each Respondent.

I find this agreement to be fair and equitable, approve such agreement, and hereby Order its adoption. This Court retains continuing jurisdiction to enforce this Order. As the Respondents no longer require a hearing on this matter, I also order this matter Dismissed with Prejudice.



Ralph King Anderson, III

Administrative Law Judge

October 27, 1998

Columbia, South Carolina



Carol I. McMahan

Attorney for Petitioner

By: ______________________

Richard A. Harpootlian

Attorney for Respondents James R. McDonald,

d/b/a McDonald's Amusements, Inc. and David Brooks


Thomas E. Dudley, III

Attorney for Respondents Gold Nugget Saloon, Inc.

Quinn Marinacci, Rainbow Inn & Deli, Inc., and Rainbow

Holdings, Inc.

Brown Bldg.






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