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Posted: 5:30 p.m. Tuesday, Dec. 11, 2012
Staff Writer
COLUMBUS —
State lawmakers decided not to take a gamble on strict regulations to Internet sweepstakes cafe parlors this year.
Senate President Tom Niehaus, a Republican from New Richmond, said Senators had too many questions about House Bill 605, which would have effectively banned sweepstakes cafes in Ohio, to take a vote. Niehaus said the bill could affect legitimate sweepstakes such as those sponsored by McDonald’s and Speedway gas stations.
“The danger you have at this time, if you’re trying to rush something through to meet an artificial deadline, is you create some unintended consequences,” Niehaus said.
Sweepstakes cafes sell phone or Internet minutes with points that can be used to play casino-style games on computer terminals. House Bill 605 would have allowed sweepstakes cafes to exist provided they register with the Ohio Attorney General and do not award prizes worth more than $10. Cafe owners said the prize limit would shut down their small businesses, which lure customers with promises of big jackpots.
The House of Representatives approved the measure last week in a bipartisan 63-30 vote. Lawmakers who voted against the bill cited concerns about shuttering an industry that employs an estimated 4,000 to 6,000 Ohioans.
Lawmakers have said they will take action on the industry next year, either through regulations or an outright ban, before the state-imposed moratorium on new cafes ends in June 2013. More than 800 cafes have set up shop in Ohio, according to the Ohio Attorney General.
Attorney General Mike DeWine told lawmakers Tuesday the cafes are ripe for crime and they need to either regulate or abolish the industry. DeWine later said he was disappointed the Senate will not consider the bill.
“I’m optimistic that the momentum on this issue will continue and the new General Assembly will act early next year,” DeWine said in a statement.
Cafe owners and employees filled a Senate hearing room Tuesday morning to oppose the bill in favor of regulations that allow them to operate. Lawmakers on a House committee shelved a bill that would have regulated cafes under the Ohio Casino Control Commission.
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