Ohio sees surprising level of Internet cafes

667 operate in the state, which is 371 percent more than estimated.

State officials and lawmakers said they will focus on regulating Internet cafes after learning the number of controversial establishments is much higher than previously expected, especially in southwest Ohio.

The state attorney general’s office received affidavits from 667 Internet cafes, also called Internet sweepstakes businesses, it announced this week. That was far more than the estimated 280 that were cited in a state survey earlier this year accompanying a new law that set a moratorium on new cafes and required existing cafes to register with the state.

There are at least 66 Internet cafes in Butler, Champaign, Clark, Greene, Miami, Montgomery and Warren counties, a 371 percent increase from the 14 estimated earlier this year.

The biggest differences were seen in Montgomery (29 more than previous estimate of five) and Clark (18 more than previous estimate of four).

A majority of the cafes, which allow patrons to purchase phone or Internet cards and use the points on terminals that offer games, are located north of Interstate 70 and are prominent in the Cleveland, Akron and Youngstown areas.

Many area municipalities have created legislation regarding Internet cafes, but this week’s affidavit count provides the first accurate picture of the Internet cafe landscape in Ohio.

Attorney General Mike DeWine has lobbied for greater regulation of the cafes. Meanwhile, Internet cafe operators have argued that their facilities are legal and provide patrons with an inexpensive entertainment option.

“Ohioans currently have no way of knowing that these games are what the cafes report them to be or if they are being completely ripped off by the owners,” DeWine said in a news release.

Saying they are surprised by the high counts, some lawmakers will turn attention to furthering legislation to regulate and license Ohio’s Internet cafe industry. Two bills that would establish laws for the cafes — one in the Ohio House and another in the Ohio Senate — are in the early stages of consideration.

Some have called the cafes illegal gambling operations, but supporters say their games are similar to McDonald’s Monopoly or other sweepstakes.

“Call it what it is, it’s gambling,” said state Sen. Joe Schiavoni, the sponsor of the Senate bill that would regulate Internet cafes. “People are going in there to try to win money, not to buy a phone card.”

Schiavoni stressed that legislation would not intend to close the businesses but find out which ones are operating inappropriately and better educate patrons about where the money goes and their odds of success with the games.

In a state gambling environment seeing an increase in casino and racetrack slot machine activity, Schiavoni said the Internet cafes should be just as regulated as those other enterprises, even as they face more competition from the bigger operations.

“It’s my opinion that most people believe there should be some regulation,” he said. “It’s just how to do it in a way that is realistic and sensible and reasonable.”

Contact this reporter at (937) 225-7389 or Kyle.Nagel@coxinc.com.

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