Sweepstakes continued on C2
MIDDLETOWN — A motion to establish a six-month moratorium on “internet sweepstakes cafés” in the city of Middletown was left on the City Council floor last week as two council members were at odds with the ordinance.
Councilman Josh Laubach and Councilwoman Anita Scott Jones voted against the implementation of the moratorium. With Councilman Tom Allen absent from the meeting, the emergency-deemed legislation needed all six council members present to vote for its approval.
The legislation’s failure means there is no limitation as to whether such establishments can operate in Middletown. According to Law Director Les Landen, the city will continue to evaluate the legality of sweepstakes cafés.
“There’s nothing out there that says you can’t open one,” Landen said. “But if you do, we’re going to look at it.”
Internet sweepstakes cafés sell Internet minutes and/or phone minutes. Then, the customer may use the internet time to play games, where he or she may receive cash rewards.
Proponents of these establishments argue this is not gambling because the amount of a person’s winnings are already established at the time minutes are purchased. The only legal means of gambling permitted in Ohio is through charitable bingo, locations cleared for casino operations and the state lottery. Betting at designated horse race tracks is also approved.
The establishments’ offerings have been compared to those of “sweepstakes” contests that are popular with fast food chains.
Recently, Mason adopted a licensing program for such establishments. Monroe has enacted a moratorium. Hamilton does not have any ordinance regulating such businesses, though it is under review by the police department, according to the city’s law department.
“Quite frankly, I don’t think it’s something we need to be wasting time or resources on,” Laubach said. “I think there are bigger things to deal with. From what I’ve been told, it’s not necessarily gambling, and if the state doesn’t call it gambling, I don’t have leanings either way on it.”
The state of Ohio is in the process of deciding if and how it should regulate sweepstakes cafés. The legislation, House Bill 195, is still in committee, according to Dan Tierney, a spokesman for the Ohio Attorney General’s office.
“I’m not for or against that particular subject,” Jones said. “When it comes to us making a decision, I just think it’s premature for us to do anything until we hear from the attorney general or the state of Ohio.”
According to Landen, city officials have been approached by vendors within the last year who have been interested in opening sweepstakes cafés in Middletown.
The city contacted the attorney general’s office.
It was of the opinion of City Prosecutor Carrie Carpenter and former police Chief Greg Schwarber that the establishments operated against Ohio’s gambling laws.
“Basically (the attorney general’s office) said, ‘These are scams, and if I were in your shoes, I would take the position that it’s gambling,’” Landen said. “We accepted that as the policy the AG’s office was giving us.”
Landen said one vendor recently approached the city about opening a sweepstakes café, regardless of whether the city felt it could press gambling charges.
A gambling charge, typically, is a misdemeanor offense, according to Landen. It can be a felony depending on certain circumstances.
Landen said he and City Manager Judy Gilleland have not yet discussed how to handle the issue in the days ahead.
“Right now we have to talk more about that, in terms of what the right answer is in putting something before council or not,” he said.
Contact this reporter at (513) 705-2871 or andrew.sedlak@ coxinc.com.
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