SC Administrative Law Court Decisions

South Carolina Department of Revenue (DOR) seeks a fine of $12,500 for a failure to post owner identification on five video poker machines. Goodtime Amusements, Inc. (Goodtime) opposes DOR's position and asserts the owner's name and the serial numbers of the machines were properly displayed. Goodtime's disagreement with DOR's determination places jurisdiction in the Administrative Law Judge Division (ALJD). S.C. Code Ann. §§ 12-60-1310, 12-60-1320, 1-23-600 (Supp. 1997). The hearing in this matter was held April 1, 1998 at the Edgar Brown Building, Columbia, South Carolina. DOR appeared and presented its case while Goodtime failed to appear and presented no evidence on its behalf. Based upon the evidence and the argument presented, Goodtime is liable for a fine of $12,500.

Did all of the Class III machines located at 311 Main Street, Allendale, South Carolina have information attached which identified the owner or operator of those machines?

1. Positions of Parties

DOR asserts five video poker machines failed to have owner identification attached. Goodtime presented no evidence in opposition to DOR's view.

2. Findings of Fact

Based on the preponderance of the evidence, the following findings of fact are entered:

1. Goodtime holds several licenses for Class III video game machines.
2. Some of the licenses are for machines located at 311 Main Street, Allendale, South Carolina.
3. On January 21, 1997, SLED Agents conducted an inspection of the video gaming machines at this location.
4. The inspection included determining whether owner or operator identification was displayed on the machines.
5. No owner or operator identification was displayed on five machines.
6. On May 30, 1997, DOR issued its report finding that Goodtime violated S.C. Code Ann. § 12-21-2748 by failing to affix an owner identification to five of the Class III video game machines located at 311 Main Street, Allendale, South Carolina.
7. On July 28, 1997, DOR issued a Final Determination on the alleged failure to affix owner identification on the five Class III video game machines located in 311 Main Street, Allendale, South Carolina.
8. DOR seeks a $12,500 fine.

3. Discussion

Licensed, Class III machines must have attached information identifying the owner or operator of the machine with the identification placed on a visible area of the machine for inspection purposes. S.C. Code Ann. § 12-21-2748 (Supp. 1997). Failure to comply with the identification requirement subjects the violator to the applicable penalty and enforcement provisions of Chapter 21 and Chapter 54 of Title 12. Id.

The evidence here shows the SLED Agents found no owner identification on these machines. Further, Goodtime failed to present any contrary evidence establishing that the required identification was affixed to the machines. Accordingly, on January 21, 1997, the five Class III video game machines located at 311 Main Street, Allendale, South Carolina licensed to Goodtime did not have the owner or operator identification affixed. Thus, in the instant case, Goodtime failed to comply with the statutory requirement of owner identification and, therefore, violated S.C. Code Ann. § 12-21-2748 (Supp. 1997).

For the January 21, 1997 violations of S.C. Code Ann. § 12-21-2748, the applicable penalty is $2500 for each violation. S.C. Code Ann. § 12-21-2738 (Supp. 1997). Here, each of the five machines was without the required information and requires a total fine of $12,500.

4. Conclusions of Law

Based upon the above Findings of Fact, I conclude as a matter of law, the following:

1. Machines authorized under § 12-21-2720(A)(3) are termed Class III machines.

2. Class III machines must have attached information identifying the owner or operator of the machine with the identification placed on a visible area of the machine for inspection purposes. S.C. Code Ann. § 12-21-2748 (Supp. 1997).

3. Failure to comply with the identification requirement subjects the violator to the applicable penalty and enforcement provisions of Chapter 21 and Chapter 54 of Title 12. S.C. Code Ann. § 12-21-2748 (Supp. 1997).

4. Goodtime failed to comply with the statutory requirement of owner identification on five machines and, therefore, committed five violations of S.C. Code Ann. § 12-21-2748 (Supp. 1997).

5. The fine imposed upon Goodtime is $2,500 for each violation and Goodtime is liable for a total fine of $12,500. S.C. Code Ann. § 12-21-2738 (Supp. 1997).

Based upon the Findings of Fact and Conclusions of Law, it is hereby ordered:

Goodtime Amusements, Inc. is liable for a fine of $12,500 and shall pay the fine within fifteen days of the date of this order.

AND IT IS SO ORDERED.

RAY N. STEVENS

Administrative Law Judge

Dated: April 2, 1998

Columbia, South Carolina