Ohio Harness Horsemen's Association

Internet Cafes Drawing Gambling Scrutiny

March 15, 2010

The front windows of the new Buckeye Internet Cafe on the East Side promise " E-MAIL," " COPIES" and " FAXING" inside.

An attendant buzzes visitors in through the front door into an empty room. Customers pass through a door on the opposite wall into a dimly lit room that smells of cigarette smoke.

After buying an Internet card, the gamer swipes it at one of the computer terminals that line the walls. The terminals emit beeps and jingle like Las Vegas slot machines. Once swiped, the cards track winnings and points.

But just try clicking the Internet icon on the screen at this Internet cafe. An attempt to check Yahoo! Mail was greeted with a blank screen.

"I'm not sure it works for e-mail," the attendant said. "It's mostly for the games."

Racetracks, convenience stores, restaurants and bars have been familiar homes for gaming, but Internet cafes in strip malls are becoming an increasingly popular place to play for cash.

"Internet cafe" sounds more reputable than "gaming parlor" when a company applies for business permits or a lease, said George Joseph, a casino consultant in Las Vegas.

Buckeye Internet Cafe, like many of these cafes, features Sweepstakes gaming, where customers are technically buying Internet time to play games rather than paying directly for the games themselves. The cards keep track of winnings, and people who come out ahead can trade them for cash or prizes.

The owner, who would not give his name, said he's working within the law, just like Chuck E. Cheese or the McDonald's Monopoly game. He said he didn't want to draw attention to himself because he just wants to run a business without getting shut down or sued for no reason.

Whether this fits the state definition of illegal gambling is a matter for the courts, including Franklin County Environmental Court. The county prosecutor's office has sued Spinners Cafe, a restaurant and gaming parlor with Sweepstakes on the West Side.

Franklin County Prosecutor Ron O'Brien said people are always finding some new loophole or testing the limits of gambling laws, but right now his priority is getting a decision on Sweepstakes. O'Brien said he's hoping for a precedent that would curtail Sweepstakes centers before they multiply.

Even if the courts rule that Sweepstakes games are legal, gambling experts say it's hard to tell which cafes are playing by the rules and which have back rooms full of slots, poker, rigged games, sports betting or illegal online gambling run by overseas companies that wire money electronically.

Joseph said authorities only have the resources to go after the most egregious violators.

Last year, police in San Diego busted five Internet cafes and seized 31 slot machines. In Texas, six people were indicted on four counts of operating an illegal gambling business, three counts of money laundering and one count of conspiracy to operate an illegal gambling business in connection with a multimillion-dollar scheme that operated Internet cafes and business centers.

Running these businesses can be risky, but playing is riskier, Joseph said. That's one of the reasons there's a lobby for the federal government to legalize, regulate and tax online gambling.

"You start by sending a big chunk of your money to a stranger," he said. "You're at the mercy of someone unregulated showing you cards or slots in an electronic form, and then the same person gets to tell you whether you've won or lost."

"First of all, it's illegal, and then it's foolish."

But cafes have special promotions, free snacks, a feeling of community and other attractions, Joseph said.

Monica, a Columbus resident who didn't want to give her full name, said she doesn't see Internet gaming for money as gambling.

She tried out Buckeye Internet Cafe at 3435 E. Broad St. last week, and she said she won $500 on her first visit at another Internet cafe in Columbus.

"It's fun when you're playing and you're winning," she said. "And they're popping up everywhere, and I mean everywhere."

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Internet Cafes Drawing Gambling Scrutiny