ORDERS:
FINAL ORDER AND DECISION
STATEMENT OF THE CASE
This matter is before this tribunal for a contested case hearing pursuant to S.C. Code Ann. §§ 1-23-310 et seq.
(Supp. 1999) and S.C. Code Ann. § 12-4-30(D) (Supp. 1999) on alleged administrative violations. The South
Carolina Department of Revenue (Department) claims that Respondent Larry Detwiler, d/b/a El Dees Swap
Shop (Respondent) violated the advertising prohibitions contained in S.C. Code Ann. § 12-21-2804(B) (Supp.
1999) and 27 S.C. Code Ann. Regs. 117-190.2 (Supp. 1999). The Department seeks a $2,000 fine against
Respondent.
A hearing of this matter was conducted at the Administrative Law Judge Division on April 4, 2000. Based
upon the following Findings of Fact and Conclusions of Law, this tribunal concludes that Respondent
violated S.C. Code Ann. § 12-21-2804(B) and 27 S.C. Code Ann. Regs. 117-190.2 by improperly advertising for
the playing of Class III machines. Consequently, the Department shall impose a fine of $2,000 against
Respondent.
FINDINGS OF FACT
Having carefully considered all testimony, exhibits and arguments presented at the hearing of this matter,
and taking into account the credibility and accuracy of the evidence, I make the following Findings of Fact
by a preponderance of the evidence:
- On February 23, 1999, Special Agent Brunson Ashley Asbill of the South Carolina Law
Enforcement Division visited the video gaming businesses located at Rt. 1, Box 292, Highway 25, Ware Shoals,
South Carolina. The Agent saw a sign exterior to the building at issue which read "videopoker." The sign had
a directional arrow that pointed towards the building which was 30-50 feet away. An electrical plug ran
from the sign to an outlet of the building. The Agent issued a citation against Respondent Larry Detwiler,
d/b/a El Dees Swap Shop for violating the advertising prohibitions contained in S.C. Code Ann. § 12-21-2804(B)
(Supp. 1999) and 27 S.C. Code Ann. Regs. 117-190.2 (Supp. 1999).
- The agents discovered three (3) licensed Class III machines in the retail business El Dees Swap
Shop at Rt. 1, Box 292, Highway 25, Ware Shoals, South Carolina.
- The Department seeks a $2,000 fine against Respondent, pursuant to S.C. Code Ann. 12-21-2804(F)
(Supp. 1999).
4. There are three (3) commercial spaces in the building in which El Dees Swap Shop is located. One of these
commercial spaces is occupied by a business referred to as Jabels, and the third commercial space is vacant.
5. Larry Detwiler is the owner of El Dees Swap Shop.
6. Larry Detwiler is the owner of Jabels.
7. Respondent supplied three (3) Class III machines to the El Dees Swap Shop business and held the licenses for
these machines.
8. There were no Class III machines at the business referred to as Jabels.
CONCLUSIONS OF LAW AND ANALYSIS
- Jurisdiction
- Pursuant to S.C. Code Ann. § 12-4-30(D) (Supp. 1999) and S.C. Code Ann. § 1-23-320 (Supp. 1999),
the Administrative Law Judge Division has jurisdiction to hear this matter.
- Burden of Proof
- In civil cases, generally, the burden of proof rests upon the party who asserts the affirmative
of an issue. 2 Am. Jur. 2d Administrative Law § 360 (1994); Alex Sanders, et al., South Carolina Trial
Handbook § 9:3 Party With Burden, Civil Cases (1999). The Department is the party asserting the affirmative
in this case; therefore, the Department must prove by a preponderance of the evidence that Respondent
violated § 12-21-2804(B), by advertising for the playing of video poker machines. See Anonymous v. State Bd.
of Medical Examiners, 329 S.C. 371, 496 S.E.2d 17 (1998) (standard of proof in an administrative proceeding is
preponderance of the evidence).(1)
- The weight and credibility assigned to evidence presented at the hearing of a matter is within
the province of the trier of fact. See S.C. Cable Television Ass'n v. Southern Bell Telephone and Telegraph
Co., 308 S.C. 216, 417 S.E.2d 586 (1992). Furthermore, a trial judge, who observes a witness, is in the better
position to judge the witness's demeanor and veracity and evaluate his testimony. See McAlister v.
Patterson, 278 S.C. 481, 299 S.E.2d 322 (1982); Peay v. Peay, 260 S.C. 108, 194 S.E.2d 392 (1973); Mann v. Walker,
285 S.C. 194, 328 S.E.2d 659 (Ct. App. 1985); Marshall v. Marshall, 282 S.C. 534, 320 S.E.2d 44 (Ct. App. 1984).
C. Advertising
- Section 12-21-2804(B) provides:
No person who maintains a place or premises for the operation of machines licensed under Section 12-21-2720(A)(3) may advertise in any manner for the playing of the machines nor may a person offer or allow to
be offered any special inducement to a person for the playing of machines permitted under Section 12-21-2720(A)(3).
S.C. Code Ann. § 12-21-2804(B) (Supp. 1999) (emphasis added). To clarify and simplify the provisions of this
statute, the Department promulgated Regulation 117-190.2 which defines the word "advertise." As it relates
to advertising, the regulation provides that ". . . any attempt to call attention to, or make known, to the
general public that video game machines as defined in Code Section 12-21-2772(5) are available for play is
advertising and is strictly prohibited by the statute."
- Section 12-21-2804(B) clearly provides that a person who maintains a place or premises for the
operation of Class III video machines may not advertise for the playing of the machines. In the instant case,
a sign displaying the word "videopoker" was positioned exterior to the building in which El Dees Swap Shop
was located. Undeniably, this sign constituted an advertisement for Class III video machines. This sign
constituted the type of advertising that the General Assembly intended to prohibit.
- The Department charged Respondent with violating § 12-21-2804(B). The evidence supports that
Larry Detwiler owned El Dees Swap Shop, held the retail license for this business, supplied the three Class
III machines to El Dees Swap Shop and held the Class III machine licenses. Consequently, Respondent clearly
maintained the business for the operation of Class III machines.
7. Respondent also permitted the advertisement for "videopoker" on the sign at issue. Larry Detwiler was the
sole owner of both El Dees Swap Shop and Jabels, which were the only two businesses located in the building
at issue. There were three Class III machines at El Dees Swap Shop. There were no Class III machines at
Jabels. The sign that read "videopoker" clearly advertised for the Class III machines in El Dees Swap Shop.
Consequently, Respondent advertised the playing of its Class III machines, thereby violating § 12-21-2804(B)
and Reg. 117-190.2.(2)
8. Therefore, the fine authorized by S.C. Code Ann. 12-21-2804(F) (Supp. 1999) is proper against Respondent.
The Department shall impose a fine of $2,000 against Respondent for the advertisement at issue.
9. Pursuant to ALJD Rule 29(C), issues raised in the proceedings but not addressed in this Order are deemed
denied.
ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law,
IT IS HEREBY ORDERED that, as mandated by S.C. Code Ann. § 12-21-2804(B) (Supp. 1999), the Department
shall impose a fine against Respondent, located at Rt. 1, Box 292, Highway 25, Ware Shoals, South Carolina,
in the amount of $2,000.
AND IT IS SO ORDERED.
______________________________
John D. Geathers
Administrative Law Judge
April 6, 2000
Columbia, South Carolina
1. The preponderance of the evidence is "[t]he greater weight of the evidence" or "superior evidentiary weight that, though not sufficient to free
the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other."
BLACK'S LAW DICTIONARY 1201 (7th ed. 1999). "The preponderance of the evidence means such evidence as, when considered and
compared with that opposed to it, has more convincing force and produces in the mind the belief that what is sought to be proved is more likely
true than not true." Sanders, supra, § 9:5 Quantum of Evidence in Civil Cases (1999) (citing Frazier v. Frazier, 228 S.C. 149, 89 S.E.2d 225
(1955)).
2. At the hearing, Respondent argued that the sign was an advertisement for Jabels, which was the other business in the building at issue, and
that a neighbor sabotaged the sign and removed the letters that spelled "Jabels." Even if this were so, this sign would still constitute an
advertisement for the playing of Class III machines at El Dees Swap Shop because (1) there were no Class III machines at Jabels, (2) Respondent
was aware that the sign read "videopoker," (3) Respondent permitted the sign to read "videopoker," (3) Larry Detwiler owned both El Dees Swap
Shop and Jabels, and (4) Larry Detwiler was responsible for the sign. |