Local leaders extend moratoriums blocking Internet cafes

Man, 68, drowns at Caesar Creek Lake
5/26/12
Water rescues prompt warning from health officials
5/25/12
Beach Waterpark sued for failure to deliver
5/25/12
Raleigh Trammell’s defense opens in felony trial
5/25/12
UD to move satellite campus to Dublin
5/25/12
> More headlines

By Kristin McAllister, Staff Writer Updated 9:16 AM Tuesday, March 15, 2011

MIAMISBURG — Miamisburg City Council is expected to extend a 90-day temporary moratorium against the opening of Internet cafes in the city while officials develop regulations to control the businesses.

The city in December passed a temporary moratorium against the issuance of permits for Internet cafes and is expected to pass a 120-day extension during tonight’s council meeting, said Chris Fine, Miamisburg director of planning and development. The current moratorium expires Thursday.

“Right now, they fall under our regulations for video arcades,” Fine said, noting that legislation specifically addressing Internet cafes does not exist.

Internet cafes are small, online gaming businesses already operating in Ohio. Authorities say the online games of skill played at the establishments resemble slot machines and are sanctioned through a loophole in Ohio gambling laws.

To play, customers purchase prepaid cards, then collect winnings preset by the computer that generated the prepaid card.

“It’s a new use, one we’ve never had before,” Fine said.

Without updated regulations, Fine said the city has little say in applying restrictions on Internet cafes.

“They can be grandfathered in,” he said.

During the extension of the temporary moratorium, Fine said the city can develop new regulations that place tighter restrictions on Internet cafes, such as where they can be located, including proximity to schools, as well as hours of operation, licensing and parking requirements.

Fine said the city likely will allocate the cafes to within the city’s highway service district, which runs along the Ohio 741 corridor and part of Ohio 725, near the Dayton Mall.

Buying time

Miamisburg is one of several communities buying time to iron out new rules through extended moratoriums.

In Springboro, officials adopted a 60-day moratorium on Feb. 3, and Trotwood City Council passed a 180-day moratorium on Feb. 7.

Springboro City Manager Christine Thompson said draft regulations on Internet cafes are in final review and City Council is expected to approve an extension before it expires on April 3.

West Carrollton and Springfield passed temporary moratoriums on Jan. 11 — 90-day and six months, respectively — and Centerville passed a six-month moratorium Jan. 24.

West Carrollton City Manager Brad Townsend said he expects city leaders to extend by another 90 days the city’s moratorium, set to expire April 11.

“Our law director is monitoring various lawsuits on the topic and awaiting guidance from the attorney general,” Townsend said. “In addition, the staff has been researching some new city regulations for adoption if the courts and/or state do not deal with the issue.”

In Butler County, officials of both West Chester and Liberty townships passed six-month moratoriums in early February.

State guidelines

Prior to taking office as Ohio attorney general, Mike DeWine in January said he was aware of the growing number of Internet cafes in the state and shared the same concerns as others regarding their regulation.

DeWine spokeswoman Lisa Peterson Hackley said the attorney general is planning soon to release regulation guidelines addressing “parts of Ohio’s gambling law.”

“We’re working on that actively,” she said.

Contact this reporter at  (937) 225-9338 or kmcallister @DaytonDailyNews.com.

Share this article