Gambling raid sparks lawsuit

HAMPTON, Va. - WAVY.com has learned a company who leases video game machines is suing the city of Hampton. It claims city attorneys knew exactly what the business plan entailed.

Last month, WAVY.com went undercover into several Hampton businesses. We discovered what police say were illegal gambling operations. Detectives raided Movie Play on North King Street and Hampton Roads Billiards on Pembroke Avenue. Police say they seized 40 video slot machines and $10,000.

After the raid, a gaming company is suing the city. WAVY.com obtained a five page complaint claiming Hampton officials signed off on the business venture before the first machine was ever installed.

"Our intent was to set up a legitimate business endeavor," said Mark Andes. "Having permission in the first place and then having the actions taken by the city kind of caught us off guard."

Andes represents Club House Amusements. He says last year the company meet with city attorneys and laid out a proposal for a movie rental and sweepstakes business. The idea was also outlined for officials in a six page business plan. Andes says with each movie rental customers were offered a chance to win a cash prize by playing a video game.

"Those games are digital icons representing mathematical algorithms," added Andes. "It's not a slot machine by any definition."

The Hampton Commonwealth's Attorney responded to the company saying the business proposed venture did not appear to constitute gambling. Today the Hampton Commonwealth's Attorney told WAVY.com the office has never given permission for anyone to operate an illegal gambling enterprise and will not condone illegal gambling.

The Hampton Commonwealth's Attorney says the investigation continues. The company claims there have been financial losses. For right now, they say all they want is to get their machines back and to continue operating.