Ohio Senate passes stricter regulation to sweep out Internet cafes

By Maggie Thurber | for Ohio Watchdog

he Ohio Senate has passed an amendment that would essentially end the referendum process begun by Internet cafes desperately trying to save their businesses.

Sen. Jim Hughes, R-Columbus, on Wednesday offered an amendment on the Internet cafes to S.B 141, which imposed prohibitions and penalties for money laundering attempts at casinos.  The amendment, which passed by a 23-9 vote, would ban any operation that gives out prizes exceeding 5 percent of gross receipts, making the cost so high for customers they would likely stop playing.

Earlier this month, Gov. John Kasich signed H.B. 7  that essentially shut down Internet cafes, or sweepstakes parlors, which often sell phone cards or Internet time while offering customers the opportunity to win cash prizes on games that resemble slot machines.  That bill set a limit of no more than a $10 cash payout on a sweepstakes machine.  The law goes into effect Sept. 4.

Proponents of the ban, including Attorney General Mike DeWine, said the businesses were conducting illegal gambling and that other illegal activities were also occurring in the establishments.

Internet café operators promptly announced a referendum effort to repeal H.B. 7.

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