This report examines current Federal and North Carolina State gambling laws as applied to Internet sweepstakes cafes and present the findings of a statewide survey of sheriffs and local police chiefs regarding their perceptions, attitudes and beliefs surrounding the proliferation of Internet cafes and sweepstakes operations. Data presented in this paper reveal that both police and sheriffs' offices have responded to calls for service and citizen complaints at these establishments for violent, non-violent and nuisance related offenses. While the majority of the respondents did not describe serious increases in the number and types of criminal activity at or near these cafes, the data do indicate that many law enforcement agencies have scrutinized these cafes with a watchful eye; slightly more than one-third of the survey participants also reported on-going or completed criminal investigations of these cafes. Additionally, the survey gathers data regarding the amount of reported and perceived criminal activity and nuisance complaints associated with these business types. Data regarding barriers to effective regulation and viewpoints on proposed legislation were also solicited in an effort to portray how the State's law enforcement executives perceive and respond to Internet sweepstakes cafes. This study documents the existence of criminal and illegal behaviors at or near Internet sweepstakes cafes. Further research is needed to precisely track the prevalence and incidence of these crimes the exploratory. Tables, references and bibliography