A Durham gambling hall that was supposed to clean up its zoning problems months ago is still open, even after city officials identified the business as an active violation. The Phoenix continues operating behind a membership-card requirement while its public-facing identity has shifted toward the more arcade-friendly name Emperors Arcade.
The latest look at the business comes from The News & Observer, which reports that the hall remains open at a University Drive shopping plaza despite an earlier promise to stop electronic gaming or become compliant. The business is managed by George Maksoud, who also operates gaming businesses in Florida, and declined to answer questions about what is currently happening inside.
Durham Issued A Citation Then Pulled It Back
Durham City-County Planning issued The Phoenix a $500 civil citation in April 2025 for violating a zoning rule barring electronic gaming at the property. The citation was later withdrawn, but planning officials told the newspaper the underlying problem had not disappeared, and the department has not visited the hall since 2025.
The business removed its exterior signage and a mural depicting Las Vegas landmarks, changes that made the storefront less casino-like without necessarily changing what customers find inside. Earlier reporting by The News & Observer described rows of slot-style machines, fish tables and sweepstakes terminals still operating during visits after the citation was issued.
The Arcade Label Is Doing A Lot Of Work
Emperors Arcade previously said it would move away from electronic gaming and become a members-only arcade, with the goal of reaching full zoning compliance by the end of November. That deadline has come and gone, while the hall remains open and the current mix of games has not been publicly clarified.
The property is part of a shopping plaza owned by Lee Barnes, who operates Family Fare convenience stores. Barnes told the newspaper that attorney Keith Anthony had assured him the business would be brought into compliance quickly, but Barnes and Anthony did not answer questions about the hall's current operations.
What Durham And State Law Say
Durham's Unified Development Ordinance does not simply treat every electronic gaming business the same, but it places strict limits on where such operations can be located. The ordinance requires electronic gaming operations to meet separation rules, including a 500-foot buffer from homes, schools, places of worship, daycares, parks and other gaming establishments, along with limits on signs, lighting and outdoor activity, according to the Durham Unified Development Ordinance.
Separate from local zoning, North Carolina law prohibits electronic machines that conduct sweepstakes through an entertaining display and bars slot-style devices that pay out cash or other things of value. The state statutes classify a first violation of the sweepstakes-machine law as a Class 1 misdemeanor, with harsher penalties for repeat offenses, although the available reporting does not indicate that The Phoenix's operators have been criminally charged in this matter, according to the North Carolina General Assembly.
For now, the result is an unusually durable standoff: a business that officials say remains out of compliance, a withdrawn citation and a promised conversion that has yet to bring a clear public resolution. The Phoenix is still open, even if its Las Vegas mural and original signage are gone.
