In December, city commissioners voted 3-2 to a delayed ban on Internet cafes, beginning this October, with hopes the state would regulate the industry in the state and to give local businesses time to comply.
The city has more than a dozen of the businesses.
Internet cafes and game rooms typically offer phone cards that can be purchased for time on computers and also includes sweepstakes entries for games where cash payouts are awarded. Many state and local lawmakers believe the computers are designed to take advantage of loopholes in Ohio’s gaming laws.
A statewide moratorium on new Internet cafes was enacted in May, but no other action has been taken by Ohio lawmakers. Attorney General Mike DeWine recently reiterated his stance that the Ohio General Assembly should adopt regulations on Internet cafes and sweepstakes parlors.
DeWine believes lawmakers must define the sweepstakes rules, establish a state-mandated payout, require certification of software and equipment, establish a computer system which monitors all machines in the state and the designation of a state agency to oversee the parlors. He also believes parlors should pay taxes and license fees.
City leaders wanted to give commissioners an opportunity to delay the ban in case the state does take action during the moratorium, according to Jerry Strozdas, the city’s law director. The statewide moratorium ends on June 30, 2013.
“We feel its appropriate to give (the commissioners) the option to wait and see what the state does,” Strozdas said.
Copeland said they’ve felt all along it was best to let the state take the lead on the issue of Internet cafes. If commissioners were to close down the Internet cafes in October, Copeland said, they’d likely try to move outside the city limits to stay open.
“We’re just trying to get out of the way to let the state what it needs to do and decide what the status of these facilities are,” said Copeland, who voted for the ban last December. “I hope they do that instead of sitting on the moratorium and not taking any action.”
Local Internet cafe owners or managers declined comment for this story.
Officials initially thought three Internet cafes were located within the city limits, but the number is higher. Affidavits filed through state Attorney General Mike DeWine’s office show 782 Internet cafes or sweepstakes parlors in Ohio, including 25 in Clark County.
Of those 25, 14 are located within the city limits, according to the affidavits. Three businesses call themselves Internet cafes, while other businesses like bars, drive-thrus and restaurants offer similar computer devices.
City Commissioner Kevin O’Neill said the attorney general’s report shed a little different light on Clark County because “there was more found than we ever thought were out there.” He was happy to see the ban extended and that the employees of the Internet cafes will keep their jobs.
“I’m still a firm believer that they aren’t causing any problems,” O’Neill said. “I believe everyone that goes in there are adults, and they’re treated as such.”
He also believes it’s a quality of life issue for some people, rather than a way to make money.
“They don’t want to sit around a bar, they don’t want to look at the TV all the time,” O’Neill said. “Maybe they’re not computer-literate enough to get on a computer at home. I think it’s a good thing. If we wait for the state to take the lead and it’s governed properly, it’s a good thing.”
The state Senate and House of Representatives each have bills in the early stages of development in committees, Senate Bill 317 and House Bill 195. According to his office, DeWine prefers HB 195, which mirrors his beliefs on Internet cafes, but said some form of regulation is needed.
State Rep. Ross McGregor, R-Springfield, said he supports the regulation of Internet cafes, especially after the creation of the Ohio Gaming Commission. He expects it to happen before the moratorium ends next summer.
“We’re regulating everything else, Internet cafes should also be subject to consumer protection regulations,” McGregor said. “They should be regulated and held accountable to make sure they’re not ripping people off.”
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