Business & Tech

Legal or Not? Future of Internet Cafes in Strongsville Still Uncertain

State is looking to regulate sweepstakes slot machines, while city maintains they're illegal

A plan by state officials to regulate Internet sweepstakes cafes could potentially open the door for them in Strongsville, although Law Director Ken Kraus said that's far from certain.

Ohio Attorney General Mike DeWine is supporting legislation introduced by State Reps. Marlene Anielski (R-Walton Hills) and Nan Baker (R-Westlake) to establish oversight of gaming that takes place at Internet cafes and similar establishments.

The bill addresses electronic games that look like slot machines, which DeWine said can mislead players and cause confusion for law enforcement.

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"Internet cafes and sweepstakes parlors that are skirting the definitions of what is legal are popping up all across Ohio. Since these games are unregulated, there is no standard for what the payout should be, putting players at a disadvantage," DeWine said.

The measure calls for licensing operators of the venues.

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But Kraus said he believes the sweepstakes machines in the typical Internet storefront will still qualify as games of chance, which are illegal. The state plans to license "only those games that are determined to be games of skill, that meet all kinds of other restrictions," Kraus said.

Strongsville has, banning them completely and warning would-be operators they will be charged with a crime if they open one here.

Other cities, like Brunswick and Parma Heights, have allowed them, while others have placed a moratorium on them until the legal issues are researched.

Kraus believes the state will say "no dice" to the sweepstakes machines. 

"I'm not sure they (state officials) are going to permit the machines in these establishments," Kraus said. "Anything that's a game of chance, they're going to make illegal."

A news release from DeWine's office says the legislation seeks to clarify the legality of electronic games for law enforcement and to provide assurance to Ohio consumers who want to play skill-based games or participate in sweepstakes or Internet cafes that they are not being swindled. 

"I think they're trying to make it easier for law enforcement to know what's illegal and be consistent in enforcement of the laws," Kraus said. "I don't think they're legalizing anything that isn't legal now."

Strongsville has stood by an opinion Kraus penned last July and has prohibited the cafes from operating here. When an Internet cafe tries to move in, the city hands the owner a warning letter.

"Your business is predicated upon affording customers a place to gamble," the letter says.

Kraus said several of the cafes have tried to move into Strongsville, but have gone to other cities after reading the letter. One tried to move into 13500 Pearl Rd., but instead has opened at 55 Pearl Rd. in Brunswick.

At so-called Internet cafes, customers buy time on computers to play online games, some of which resemble casino games.

But proponents argue that because the outcome is predetermined -- rather than games of chance -- they are a type of sweepstakes, not gambling.

While some cases have gone to court, Kraus said the decisions have gone both ways, depending on the specific nature of the computers and the software. 

Kraus said he will not back down until the Ohio attorney general or a court rules that the sweepstakes cafes are not a form of gambling.

"We've taken a very strong position on this," he said.


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