Politics
One of the Next Big Debates: Internet Cafes
Should they be interpreted as casinos and shut down, or milked for revenue?
Around the State
Many internet cafes these days offer patrons chances to win prizesWhat are they doing and how did they get they get that way? Should they be regulated or shut down?
Internet cafes have quietly become one of the most controversial issues in Florida today. In recent years they have emerged and spread throughout Florida, often in strip malls, in low-income areas and wherever a large number of senior citizens live, from the Panhandle to south Miami.
But this new, popular trend is causing much confusion and concern for many Floridians.
Police chiefs, state attorneys and county sheriffs' deputies are all pleading to ban Internet cafes, insisting they are nothing more than illegal gambling areas that draw a criminal element into whatever neighborhood they set up shop.
Researchers and lawmakers are also looking into Internet cafes as a possible emerging revenue source, a trust fund that might be established for struggling school districts. In North Carolina, for instance, William Thevaos, president of an association representing Internet sweepstakes centers in the state, says regulated Internet sweepstakes could generate $500 million a year for the state. For that reason, the North Carolina governor has gone from urging their demise to considering them an exciting, new cottage industry.
Nobody yet in the Florida Legislature is proposing Internet cafes as a revenue source.
Nobody yet in the Florida Legislature is proposing Internet cafes as a revenue source.
For now, the battle in the Sunshine State is whether the hundreds of Internet cafes now operating are providing a legal service to customers, or opportunities for illegal gambling.
Here's how they work: In order to take in more patrons, a proprietor offers a kind of online sweepstakes. He or she gives, say, 100 chances for every hour of Internet time purchased. Customers could see if they won by playing video slot machines online and redeem winning chances for cash prizes of $10, $25 or $100.
Does that sound legal? Authorities in some cities and counties say no, it looks a lot like gambling. But the proprietors get themselves lawyers and fight back. And all of a sudden the ball is back in the state's court.
Here's how they work: In order to take in more patrons, a proprietor offers a kind of online sweepstakes. He or she gives, say, 100 chances for every hour of Internet time purchased. Customers could see if they won by playing video slot machines online and redeem winning chances for cash prizes of $10, $25 or $100.
Does that sound legal? Authorities in some cities and counties say no, it looks a lot like gambling. But the proprietors get themselves lawyers and fight back. And all of a sudden the ball is back in the state's court.
Most recently, Neptune Beach and Baker County adopted ordinances banning Internet cafes.
In the last couple of weeks in Pinellas County, sheriff's deputies raided three Internet sweepstakes cafes, seizing about $20,000 and around 200 computers.
In the last couple of weeks in Pinellas County, sheriff's deputies raided three Internet sweepstakes cafes, seizing about $20,000 and around 200 computers.
State and city officials in North Carolina, Utah, California and other states are dealing with the same issues pertaining to Internet cafes.
Florida law allows business owners of Internet cafes to offer a service that lets customers pay for Internet use, and an accompanying gaming contest that provides prizes.
According to Section 849.094 of the Florida Statutes, a game promotion is a contest, game of chance, or gift enterprise. Game promotions are also conducted in connection with the sale of consumer products or services, and have the element of chance and prize. Bingo games, raffles and lotteries are not game promotions.
“When the bill was passed, Internet gambling devices were not even considered,” said Marc Dunbar, a Florida lawyer whose practice focuses on gaming and governmental law.
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