sweepstakes games

Demorris A. Lee, St. Petersburg Times
Thursday, October 6, 2011

http://www.tampabay.com/news/publicsafety/hillsborough-sheriff-warns-internet-sweepstakes-cafes-to-fly-right/1195463

In joining a crackdown already under way in neighboring counties, the Hillsborough County Sheriff’s Office is warning owners of Internet sweepstakes cafes to stop any illegal gambling or risk prosecution.

In a letter dated Oct. 3, the Sheriff’s Office writes to owners that it is “obligated to investigate all illegal activities occurring within our jurisdiction, including illegal gambling activities.”

The letter states that “according to our understanding of your operation, you are conducting business activities in violation” of state gambling laws.

The letters come as Hillsborough County commissioners are set to meet next week to take their own steps to regulate the cafes.

Sweepstakes cafes have been allowed to operate freely in Hillsborough, while in Pinellas and Pasco counties, Sheriffs Jim Coats and Chris Nocco have shut down such cafes and arrested owners.

In both Pinellas and Pasco, the sheriffs began their enforcement campaigns against the cafes with similar letters of warning. Coats and Nocco contend that the cafes foster illegal gambling.

Larry McKinnon, a Hillsborough County Sheriff’s Office spokesman, said Wednesday that the letters sent this week give owners the opportunity to make sure their businesses operate legally.

“If they are unclear about what the law says, then they should consult an attorney or the State Attorney’s Office for clarification,” McKinnon said.

The number of Internet sweepstakes cafes has soared in the Tampa Bay area recently.

Sweepstakes cafe customers purchase Internet time that they use to access casino-style games on cafe computers. Points won in the games can be redeemed for cash in the cafes.

Last month, Hillsborough County commissioners voted unanimously to direct staffers to draft an ordinance banning simulated gambling devices. The ban could exempt nonprofit groups.

Commissioners have scheduled a workshop for 1:30 p.m. Tuesday to discuss regulating the cafes. If they can agree on language for an ordinance, a public hearing will be held Oct. 19.

Commissioner Sandy Murman, who wants the establishments banned, said there are at least 25 Internet sweepstakes cafes operating in unincorporated Hillsborough.

“The Sheriff’s Office is doing the right thing,” Murman said of the letters. “They are supposed to stop crime and illegal activity.”

The letters are arriving at cafes days before commissioners discuss local regulations, but Murman said the two events are not related.

“I don’t think anyone is operating on a timeline because of the ordinance we are proposing,” Murman said. “The workshop will allow both sides to present their case.”

Nancee Laursen, owner of the Enless II sweepstakes cafe on W Hillsborough Avenue, received one of the letters. She said she is running a legal business.

“I’m going to wait and see what happens,” Laursen said. “The fact is, it’s not gambling. If they are going to investigate, they should come into my store and let us know they are here so I can explain it to them. It’s completely black and white. It’s not gambling.”

But area law enforcement agencies point to Florida gambling statute 849.16, which states in part that any device is considered a slot machine — illegal in Florida except where specifically allowed — if it operates “as a result of the insertion of any piece of money, coin or other object” and if the user, because of “any element of chance,” receives anything of value.

Sweepstakes cafe proponents point to a different state statute on game promotions when they argue their cafes are legal. They say they are merely using sweepstakes games to promote their businesses.

A Pinellas cafe owner is challenging Coats’ decision to raid and close her Palm Harbor business. A federal court hearing in Tampa is scheduled for Oct. 14.

By MIKE SALINERO | The Tampa Tribune
Published: August 17, 2011
Updated: August 17, 2011 – 10:30 PM

» 3 Comments | Post a Comment

TAMPA

Usually one of the calmer, more-demure Hillsborough County commissioners, Sandy Murman broke out of character Wednesday when a fellow board member suggested delaying an ordinance to shut down internet sweepstakes cafés.

Murman made the motion to ban the cafés, which she described as illegal gambling operations that feature computerized slot machines. The county sheriff’s office also supports a ban.

But Commissioner Victor Crist, raising the specter of lawsuits by the café owners, urged caution and suggested the county appoint a work group that included sweepstakes café owners to study the issue.

“I am totally surprised at what’s come out of your mouth,” Murman almost shouted at Crist, who served with her in the Florida Legislature. She pointed out that Crist had served for years on the state Senate Committee on Criminal and Civil Justice Appropriations.

“You can’t sit at the table and try to work out a consensus with people that promote illegal gambling,” she said.

After long debate, Crist withdrew his motion and the board voted 7-0 to have the county attorney draw up an ordinance banning the cafés. A public hearing on the matter will be held sometime in coming months.

The cafés have proliferated in Hillsborough as adjoining counties have moved to shut them down. Murman said there are now 25 operating in the unincorporated areas of the county, and an unknown number in Tampa.

The businesses, which often locate in strip malls, sell internet time on computers. Patrons get phone cards that allow them to participate in sweepstakes contests that are just like playing a slot machine on a computer.

Chris Brown, a lawyer with the sheriff’s office, said the video sweepstakes games meet the state’s legal definition of slot machines, which are largely prohibited in Florida.

“They are illegal gambling,” Brown said.

But the cafés have persisted because of the ambiguity of state gambling law, Brown said. The law’s loopholes make it difficult to successfully prosecute café owners, who often fight back with civil lawsuits.

Defenders of the cafés say they are no different than the sweepstake cards that some businesses give to customers who buy something.

Jacksonville attorney Kelly B. Mathis, representing a not-for-profit called Allied Veterans, said Brown mislead the commission about the legality of the cafés.

“No judge has ever held that they are illegal, that they’re slot machines,” Mathis said after the meeting. Mathis said the veterans group, which operates about 40 internet cafés in Florida, would welcome “reasonable regulation.”

Commissioner Mark Sharp asked whether the board should wait to see if the Legislature passes clarifying legislation to the gambling statute next year. But Commissioner Kevin Beckner, citing the Legislature’s failure to deal with personal injury protection insurance fraud, nixed the idea.

“We need to protect our own community and not wait for Tallahassee to act,” Beckner said. “We have that responsibility as legislators up here to do what we feel are in the best interest of our community.”

Sandy Murman

Hillsborough to draw up law banning sweepstakes cafes