News writer
Two convenience stores in North Carolina can no longer sell lottery tickets after state officials revoked their license following a gambling-related guilty plea by one of the business owners.
The affected locations are a Valero store at 201 W. Cumberland St. in Dunn and the Country Mart at 1108 N.C. Highway 242 in Benson. Both stores had their lottery terminals shut down this week by the North Carolina Education Lottery (NCEL). Lottery officials also removed all instant ticket inventory and lottery-related equipment from both locations.
It all started with a guilty plea
According to lottery officials, one of the registered owners of the two stores, Harinderjit Dhindsa, pleaded guilty to gambling-related charges on January 15, 2026. In that case, the judge granted a prayer for judgment continued, which means no final judgment was entered.
However, lottery officials say the guilty plea itself constituted a violation of the retailer contract with the state lottery.
Under NCEL policy, any owner, officer, or director connected to a lottery retailer must meet specific eligibility standards. By entering into a criminal plea that involves gambling, the owner breached those standards, even if the sentencing was deferred or limited.
Because of this, the lottery commission revoked the Certificate of Authority tied to the retailer identifications controlled by the proprietors. They also terminated the retailer contracts for both contracts.
Clearing house
Lottery officials didn't waste any time after the license was revoked. On Wednesday, February 25, NCEL representatives deactivated the lottery terminals at both stores. They also seized all instant tickets, materials, and equipment associated with lottery sales.
At the store locations, officials say a handwritten sign is posted on the doors letting customers know that “Lottery is temporarily down, sorry for the inconvenience.”
While the contract has been revoked by lottery officials, the owners of the convenience store are still financially responsible for any outstanding balances owed to the lottery.
Formal notice delivered
As far as the owners finding out about the termination, they were notified through both U.S. Postal Service mail and hand delivery to the store. The termination letter was dated February 17 and was issued by Veronica Peninger, retailer administration manager for the NCEL.
The state lottery maintains strict standards for these retailer contracts. This is done to ensure the integrity of lottery operations. Retailers must comply with legal, financial, and ethical guidelines to maintain their authorization to sell tickets.
Where do they go from here?
According to the NCEL Policies and Procedures Manual, there is a formal Retailer Dispute Resolution process. This allows store owners to appeal any enforcement actions. At this time, it is unknown if the owners of the Dunn and Benson stores plan to pursue that option. No details were given regarding the reported conviction of the store owner.
For North Carolina Lottery players, this shutdown means they will need to visit other lottery retailers in the area to purchase tickets for any lottery games.
This case serves as a reminder that lottery retailers operate under binding agreements with state commissions. If there are any violations, even those violations tied directly to individual owners, they can quickly bring ticket sales to a halt.
Enjoy playing the North Carolina Lottery, and please remember to play responsibly.
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