Crazie Overstock Promotions, LLC v. StateAnnotate this Case
The Supreme Court modified and affirmed the decision of the court of appeals affirming in part and reversing and remanding in part and order entered by the superior court entering final judgment in favor of Defendants in this litigation to enjoin enforcement measures stemming from the belief that a Rewards Program encompassed within the operation of Crazie Overstock LLC's enterprise was unlawful, holding that the Rewards Program constituted an unlawful sweepstakes in violation of N.C. Gen. Stat. 14-306.4.
Crazie Overstock brought this action to enjoin enforcement measures taken by the State and certain members of the State's Alcohol and Law Enforcement Division. The enforcement measures were taken on the grounds that the Rewards Program was unlawful. The superior court entered final judgment in favor of Defendants, concluding that the Crazie Overstock Rewards Program may violate N.C. Gen. Stat. 14-306.4 and other North Carolina gambling provisions. The court of appeals affirmed the trial court's decision to grant summary judgment for Defendants with respect to the issue of whether the Rewards Program violated section 14-306.4 but reversed and remanded as to the issue of whether the program violated section 14-306.1A. The Supreme Court affirmed as modified, holding that the Rewards Program constituted an unlawful sweepstakes in violation of section 14-306.4, and remand was unnecessary.