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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. Loco Motion, Inc., et al

South Carolina Department of Revenue

South Carolina Department of Revenue

Loco Motion, Inc., Stephen E. Lipscombe, and American Amusement




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. 1997)]. On November 24, 1997, at Eddy's Playroom, 5700 Hwy. 17, Myrtle Beach, S.C., Respondents were cited for operating more than five machines licensed pursuant to S.C. Code Ann. Section 12-21-2720(A)(3) (Supp. 1997) (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. 117-109 (Supp. 1997). There are nine Class III machines at issue in this case that were licensed to American Amusement Co., Inc.: 380507 expiring 5/98, 3936997, 3936998, 3937000, 3936991, 3936995, 3936990, 3936989, all expiring 5/99. A Department determination was issued sustaining the imposition of the violation. The determination sought revocation of Respondent American Amusements, Inc.'s nine Class III machine 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 $10,000.00).

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

The agreement between the parties is as follows:

1. Respondent American Amusement Co. agrees to pay by November 1, 1998, the rao rata value of nine Class III licenses which value is $8,166.00.

2. Respondents further agree noto to operate or to allow the operation of any Class III machines at the subject location for a period of six months from November 1, 1998 (this location is currently depicted on the attached diagram).

3. Respondent Loco Motion further agrees to remit to the Department a monetary fine in the amount of $1,000.00, no later than 5:00 p.m., November 1, 1998.

4. In consideration of the above, the Department agrees to waive the remaining monetary penalties and the penalty of revocatioen of licenses sought for this violation as to each Respondent.

5. 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 it in S.C. Code Ann. 12-4-320(3) to compromise such matters. Further, that as a compromise of a disputed issue, this agreement shall not be construed to be an admission of wrongdoing or liability by any party.

I find this agreement to be fair and equitable, approve sucsh agreement, and hereby order its adoption. As Respoondents no longer require a hearing on this matter, I also order this matter dismissed with prejudice.



Administrative Law Judge

September 2nd, 1998

Columbia, South Carolina



Jeff Nelson

Attorney for Petitioner


Zoe Sanders Nettles

Attorney for Respondent American

Amusement Co., Inc. and Stephen Lipscombe


Jeff Keenan

Attorney for Respondent Loco Motion, Inc.

Brown Bldg.






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