In a statement released this morning, United States Attorney Thomas G. Walker announced that his office reached a non-prosecution agreement with HSV, which has been operating the venue as the Royal Palace Theatre since 2012.

The agreement provides that the United States Attorney’s Office for the Eastern District of North Carolina will close its criminal investigation of HSV, conditioned upon the company's agreement that it will no longer have any involvement with sweepstakes in North Carolina involving an entertaining display.

HSV will terminate its operation of the theater effective May 18.

Also, the statement says, City Attorney Gilbert Chichester has informed the United States Attorney's Office that the city will no longer allow sweepstakes devices back in the theater after HSV leaves.

The statement does not go into specifics of the criminal investigation, which the agreement ends.

It was being investigated by state Alcohol Law Enforcement and the Internal Revenue Service in coordination with Assistant United States attorneys David Bragdon and Joshua Royster, the statement said.

Roanoke Rapids City Council Tuesday night unanimously voted to end the lease with HSV, explaining the decision was mutual.

While HSV will cease operations at the theater May 18, city council voted that the lease agreement with the company end May 30.

“The thirtieth is the final move out date,” City Manager Joseph Scherer said this morning.

That gives HSV time to move out their equipment and time for the city to inspect for damages, Scherer said.

At this point, the city manager said, the city has options it is considering, including negotiations with Bank of America to restructure the debt and the ultimate sale of the venue. “We need to get an estimated price from Bank of America on what they will allow us to sell it for.”