Gambling advertising ban struck down

Tuesday, Aug. 1, 2000 | 10:53 a.m.

THE ASSOCIATED PRESS

COLUMBIA, S.C. -- One month after video gambling became illegal, the state Supreme Court has thrown out a state law banning advertising of the games.

The court on Monday ruled in favor of Video Gaming Consultants Inc., which challenged the law after one of its casinos was cited in 1995 for violating the law.

Jackpot Video Games, in Garden City, was cited in July 1995 for having one sign that read "STOP HERE TRY OUR POKER VIDEO GAMES" and two signs that read "JACKPOT VIDEO GAMES."

The company sued, saying the law violated its right to free speech. It also noted that the signs noted in the second citation mentioned only the casino's name.

An administrative law judge upheld the citations, saying a law banning advertisement of video gambling machines was legal. A Circuit Court judge upheld the lower court's ruling.

But the state Supreme Court unanimously said the lower courts erred in finding that the law was constitutional.

To justify prior restraint of advertising speech, the state must prove some tangible benefit from the regulation, the court said. Justice James Moore, writing for the court, said that while the state had a compelling interest in reducing gambling, the state never proved that the advertising ban would reduce gambling.

H. Buck Cutts, lawyer for Video Gaming Consultants, said that while the ruling is too late to help video gambling operators, it should be considered a victory by all businesses.

"The ruling shows commercial speech cannot be restricted without an extremely good reason. That's important to any businessman," Cutts said.