Raid triggers lawsuit over Indiana online gaming

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FORT WAYNE (AP) — A company that owns terminals used for online gambling has sued the Indiana Gaming Commission, saying the state violated its constitutional rights when agents seized 51 of the machines and $3,000 cash last month from two businesses in Fort Wayne.

In a lawsuit filed this week in federal court in Fort Wayne, Florida-based Buckwheat Holdings asked a judge to block any future action against the company by the state.

Gaming commission agents seized the so-called “sweepstakes machines” and money on. Dec. 21 from Lincoln Plaza Internet Sensations in New Haven and Wrigley Field Bar and Grill in Fort Wayne.

The raid followed a Dec. 19 memo from the Indiana Alcohol and Tobacco Commission that said the so-called “sweepstakes machines” popping up in bars, restaurants and other businesses that sell alcohol are illegal, even for businesses authorized to have pull-tab type games.

But the lawsuit argues the sweepstakes games and prizes are simply a means of enticing customers to buy Internet access for $5 an hour, and that customers are free to surf the Web wherever they want.

“Not unlike the McDonald’s Monopoly game and other similar sweepstakes games, the simulated games offered to reveal sweepstake entries on the Internet terminals are simply a promotion to encourage customers to purchase Internet time,” the lawsuit said.

Customers receive credit for entry in a sweepstakes when they purchase time on the Internet, court documents said. They also can request one sweepstakes entry free. Customers can choose whether or how to find out if they’ve won a prize, which can be claimed at the front desk.

The suit also claims that simulated slots and other games are essentially video games, which the U.S. Supreme Court has ruled are protected by the Constitution. Under current law, a personal computer or cellphone could be considered an illegal electronic gaming device if used to access online websites that offer simulated slot machines, the lawsuit claims.

Buckwheat claims the gaming commission’s enforcement violates its free speech rights, due process rights, and right to be free from illegal search and seizure.

The company filed a similar lawsuit in October in Marion County.

Gaming commission officials declined to comment on the lawsuit and referred requests to the state attorney general’s office, which in turn declined to comment and referred requests back to the gaming commission.