County Orders Four Internet Cafes To Halt 'Sweepstakes'

The Alameda County Board of Supervisors took action last week to order four Internet cafes to quit offering computer time rentals that include access to prize-winning sweepstakes. State authorities have issued an advisory that such sweepstakes violate state laws against online gambling.

The four locations are:

• SAN LORENZO SWEEPSTAKES CAFÉ, 17780 HESPERIAN BLVD
• DIAMOND INTERNET SERVICES LLC, 20812 MISSION BLVD, HAYWARD
• WEB ACCESS LLC, 2576 CASTRO VALLEY BLVD., CASTRO VALLEY
• NET CONNECTION LLC, 15915 HESPERIAN BLVD, SAN LORENZO

The background for the local action stems from a report issues in December by the state Bureau of Gambling Control. The report said in part:

With increasing frequency, so-called “Internet cafés” that sell Internet time or phone cards in conjunction with a “promotional sweepstakes,” are operating throughout California. The “sweepstakes aspect” of the Internet cafés permits customers to play gambling-themed games on computers to win cash prizes. The Bureau of Gambling Control (Bureau) considers Internet cafés that offer these types of sweepstakes to be illegal gambling operations. (copy of report attached as PDF).

Similar enforcement actions have occurred in other counties.

MercuryNews.com published a story on the Supervisor's actions that includes rebuttals by cafe operators.

Meanwhile, a bill that would legalize online poker has been reintroduced into the state legislature to replace a similar measure that stalled, according to a legal blog, as the issue of online gambling bubbles to the surface.

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