Why American Gaming Association Abandons Online Gambling


Pre-Reveal-GoldAlmost five months ago, the American Gaming Association announced that AGA was focused on preventing prohibition, however, on Wednesday, the Wall Street Journal reported that the largest casino group in the U.S. withdrew its support for online gambling.

Based on the Wall Street report by Kate O’Keeffe, AGA’s CEO Geoff Freeman concluded that online gambling was “an issue that the association cannot lead on”

“One of the things I’ve learned in this industry is we are extraordinarily competent at shooting at one another. The snipers in this industry are of the highest quality and, if you let that be the focus, we’ll kill each other,” Freeman stated.

Due to disagreements among the casino industry’s major leaders, AGA has decided to call off its support rather that attempt to negotiate for a solid platform to work on.

“The AGA Board, including members on all sides of the issue, collectively agree that the right role for its trade association is to advocate for the many issues that unite our industry, including the need for a more modern system of licensing and regulation, one that better recognizes the significant economic impact gaming contributes to local economies throughout the United States,” the Chief declared.

On the other hand, Executive Director John Pappas of the Poker Players Alliance was not surprise of the news since AGA had cut back on lobbying for the past months.

“I think they’ve really scaled back on activity for some time now, it’s just now becoming public that they scaled back on activity. There have been some other stories that the AGA is taking a neutral position now because of the split, mostly with Sands. Obviously, when reported in the Wall Street Journal it becomes a bigger story,” Pappas explained.

For more than a decade, AGA was neutral to online gambling, however it 2010, it came around on the legalization of online poker.

Caesars Entertainment along with MGM Resorts and other casinos campaigned for online poker and organized Coalition for Consumer and Online Protection to stop the Congress from banning online gambling.

Meanwhile, Caesars biggest rival, Las Vegas Sands owned by casino mogul Sheldon Adelson crusades against online poker and founded the Coalition to Stop Internet Gambling.

Back in February, Adelson threatened to cancel his AGA membership together with Sands’ financial support to AGA unless the association abandons support for online gambling.

Furthermore, the National Governors Association sent a letter to the congress initiating their opposition to online gambling ban.

“Regardless of whether governors are in favor of offering gaming—through whatever form—within their own states, decisions at the federal level that affect state regulatory authority should not be made unilaterally without state input,” NGA wrote.



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Valley Town Wants To Tax Sweepstakes Games


The city of Clemson has placed a stop on any type of arcades starting over the following year as part of a bigger effort to get a new generation of video-gambling machines under control.

Lefty Patel’s Lucky Fun 777 Sweepstakes and Hotel Cafe

Clemson City Council users have voted to begin charging businesses $ 500 for every supposed “sweepstakes” machine operating in the city. In an independent ballot, they additionally positioned a broad moratorium on any kind of business that makes most of its cash off electronic gaming– from Pac Man to games that offer money and prize payouts.

In Anderson, a handful of “sweepstakes” gaming businesses have actually opened up with labels like “777 Sweepstakes” and “Fun City Cyber Cafe.”

Video poker was outlawed via a South Carolina Supreme Court judgment in 2004. Operators of these sweepstakes machines, however, have tried to get around that judgment by selling computer time or phone cards on machines that then open sites to slots-type games with payouts.

The state Attorney General’s Office and State Law Enforcement Division representatives have responded by confiscating machines and prosecuting operators all over the state– inlcuding in Anderson.

Still, state law is unclear concerning whether the machines are legal, and a minimum of one county magistrate has actually ruled that they are.

Townships such as Mauldin and Spartanburg have actually responded with moratoriums on the businesses; even more lately, town governments have relied on zoning to limit where they may run until state lawmakers determine the businesses’ fate, stated Scott Slatton, an industry services manager for the Municipal Association of South Carolina.

“There is clashing details on whether they may present as ‘sweepstakes’ or ‘Internet’ cafes,” Clemson Mayor J. C. Cook said Monday. “We were informed they needed to have an alcohol license to function; then one more ruling indicated that they didn’t need to.”

Cook said no galleries presently operate in Clemson, and council members wanted Clemson organizing personnel to have time to assess where they may situate need to specify lawmakers or the state Supreme Court determine they are legal.

Slatton stated the high court will likely lead on the machines before the legislature reaches it.

Sen. Larry Martin of Pickens, chairman of state Senate’s Judiciary Committee, exposed a law that would have forbidden the machines yet it died on the Senate floor in May as attention resorted to settling the state budget. A House version of his bill did pass, however both will certainly have to be reintroduced in January.

“I believe the Supreme Court will definitely concur that sweepstakes machines are essentially a reincarnation of something that is outlawed, which is video poker,” Martin claimed. “That will certainly take a while.”

Gambling is controlled at the state level, claimed Judy Patterson, the senior vice president and exec director of the American Gaming Association. Her company issued a white paper on sweepstakes machines this summer as it has actually observed more and more of them popping up nationwide.

The North Carolina Supreme Court is expected to preside on their legality this month, she said.

“These cafes represent everything that legal commercial gaming in this nation doesn’t stand for,” Patterson said. “Go down any sort of check listing.”

Legal gambling is taxed, its operators are evaluated for criminal backgrounds, its probabilities are supervised for consumer security and vulnerable populations such as youngsters are kept away from it, she claimed.

“None of that is taking place right here,” Patterson claimed. “All you have to do is rent a room, put up a sign, purchase some computers, supply soft drinks, and you are good to go.”

Without state or federal laws dealing with the machines, personal municipalities have been managing the businesses as they have started.

SLED representatives raided two Fun City Cyber Cafes in Anderson earlier this year, on May 23 and July 13, and took 22 gambling machines along with other devices.

An Anderson County magistrate ruled on Oct. 2 that all of the machines should be destroyed, in maintaining with the state Supreme Court’s ban of video gambling.

However a Greenville County magistrate ruled last month that an Internet cafe operator there could possibly keep his machines.

“That magistrate’s decision in Greenville County, that’s the closest county to us that it’s gone to court,” Cook pointed out. “They were considered legal.”

Cook said he reviewed the machines with his police chief and determined it would definitely be safer to make use of the city’s zoning law to regulate where they could go– like not near a school or church– rather than experience the cost of taking and destroying machines that may later be considered legal.

“You could be sued for reduction of income for whatever time they lacked their machines,” Cook stated. “That could be massive.”



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Free Speech And Sweepstakes Video Games And How They Exist


Operators of sweepstakes videogames in New Hampshire and also South Carolina have provided claims against their certain state governments. Both legal actions sustain that restrictions on electronic sweepstakes games are illegal given that they breach free speech as well as equal protection.Attorneys in both instances are plainly taking their signs from an Appeals Court judgment last March that dubbed North Carolina’s sweepstakes ban illegitimate as a result of it breaching first amendment protections on free speech.

The New Hampshire lawsuit was filed by Scott and Cindy Loring of 3D Business Centers(Seabrook and Portsmouth)in June in Rockingham County Superior Court.
Around mid-July, as explained by regional sources, the brokers asked the court for a preparatory injunction so they may continue running the games till the case goes to court.
The Lorings are longing for a statewide ban on these tools (HB 1260) to be annulled, as it was in North Carolina.
In South Carolina, business manager Terry Eddie Land of Gamecock Sweepstakes (Sumter) provided a claim in federal court on July 30 against the State Law Enforcement Division, responding to a raid two weeks prior that had terminated his company. Summoned as defendants also are the Sumter County sheriff as well as the state government.
Indicating he paid $ 20,000 for state business licenses, Land declared that his company is valid due to constitutional guarantees defined in the First and Fourteenth Amendments.
Previous SLED director Reggie Lloyd, at this time a sweepstakes company proponent, is assisting Land with the suit.
Lloyd told The State newspaper that like cases based on constitutional evidence have in fact been submitted to secure sweeps games in Florida, Ohio in addition to Arkansas.



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Internet sweepstakes paving the way for online casino in California



Internet Sweepstakes businesses provide quality employment and fun entertainment for thousands across US.

“I need to check your purse to determine that you do not have a weapon” the security guard stated.

Lucky’s, located in a strip mall center just south of University and Cramer avenues, has much more than 50 desktop computers for customers to use the Internet at 25 cents a minute or send faxes at 50 cents a page.

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Even though the video games appear almost identical to casino games, representatives of the Internet cafes insist what they are providing isn’t gambling but a type of sweepstakes promotion and that company model is thriving and based on the text inside the law they appear to become legal.

Within the last several weeks, along with Lucky’s, Airbase Cyber Cafe & Business Center Inc. in Roseville and Wild Rides Company Center & Internet Cafe in Chino have opened.

A representative from Lucky’s game software provider insisted that these promotions are no different than the sweepstakes that Mcdonalds has online and within their stores. “Its the same concept as these major brands are providing and have provided for 20+ years. It just took longer to be implemented from traditional sweeps to internet sweeps” says Casey Rooks of Internet Sweepstakes Network.

Prosecutors from around the state admit they’re familiar with the Internet cafe business model, but the issue is that there is a technical word for gambling and these games do not fall within that definition. “It’s not againgst the law if its a true legitimate sweepstakes”

Prosecutors from around the state have been approached by representatives of sweepstakes gaming providers who met with interested parties to present their argument for the legality of their business model, magistrates across the country have agreed that the company model does not contain a critical component. Casey Rooks explains “The transaction lacks a legal term called ‘consideration” in order to have gambling you must have it”

How the Games Work ?

Upon entering a business cafe, a customer shows his driver’s license and buys Internet time. The customer’s information is placed on a swipe card. Along with Internet time purchased come entries into sweepstakes.

“With the computer age come ways to reveal your sweepstakes entries,” stated Casey Rooks, a spokesman for the Internet Sweepstakes Network on the west coast, which helps owners establish Internet cafes. “It’s very simple, but at the same time, it’s very complex.”

At Lucky’s, a Long Beach business reporter purchased $20 worth of internet time, though, was converted into 2,000 points that were used to pay various video poker and slot machine games. The internet time that was purchased was not effected by the wager of the player, his time was his no matter how much he played.

Depending on the amount wagered, points were deducted from those 2,000 points for each play. But for each win, those winning points were set aside in another category and could be cashed in when the player stopped playing or ran out of prepaid Internet time. The Long Beach business reporter cashed in his 1,200 winning points for $12.

At Lucky’s, free soft drinks and snacks from a vending machine were handed out to customers. One evening last week, an elderly woman said that she had recently won $125 at Lucky’s. When asked about how much she lost “Its a whole lot less than I would have if I went to a casino”

During the about 30 minutes a reporter was at Lucky’s, none of the dozen patrons – all of whom appeared to be over 50 – were using the machines to check the Internet. Customers had to be 21 or older to enter the company.

Rooks said the sweepstakes games were similar towards the games that McDonald’s offers.

“When you walk into a McDonalds and buy a happy meal you are given a cheeseburger, fries and a softdrink. The softdrink usually has a peel tab on the side in the cup (a monopoly game piece) in contrast when you walk into an Internet Sweepstakes Cafe and buy Internet Time you are given access to a computer that also has access to the internet and the sweepstakes games.

In both examples, you are not required to enter the sweepstakes because you did not buy the entry towards the sweepstakes, you actaully bought the product, in this example, the Happy meal and internet time are the product.

It is the customers choice whether or not to enter the sweepstakes by either “pulling the tab on the side in the soft drink cup” or “accesing the game on the computer that they purchased the internet time on”

Rooks continues “The money did not activate the game, the money bought a product and access to the sweepstakes were free for buying the product, thus eliminating one in the elements of the technical term of gambling (which is illegal in most juristictions) This arguement has been won in courts through-out the nation”

Florida Games

Some government officials in Florida and other states see the Internet cafes as gambling houses. But attempts to shut them down have been difficult because the courts seem to agree that the states arguement of gambling isn’t fulfilled.

When Seminole County, Fla., passed an ordinance in January to prohibit the simulated gambling devices, it was hit with a federal lawsuit. The Allied Veterans in the World Inc. sued the county on grounds that the ordinance violated the First Amendment and due process.

The lawsuit asks for a preliminary injunction to prevent the ordinance from being enforced. That motion was denied, and that ruling has been appealed.

“Luckys has a right to conduct drawings and sweepstakes promotions as part of their speech-related activities,” plaintiff’s attorney Kelly Dover wrote in his 49-page lawsuit, which was filed Feb. 1.

“Apparently, it would be acceptable for Luckys to make use of paper or speak through a tin can connected to another with a string to notify its clients that they had won the sweepstakes, but it isn’t acceptable to communicate the same material using a computer display,” he wrote in the lawsuit.

Dover said in an email to 123LA Weekly last week that the attacks towards the company model are coming because “law enforcement is confronted with something with which they’re unfamiliar and once we explain the business model its usually no longer an issue”

He said if law enforcement officials and politicians inspected the businesses they would see that the Internet cafes aren’t gambling houses and the business model has won court victories across the US.

“Those officials that look closely at the operation and the law usually conclude that the activity is not only lawful but beneficial towards the community rather than a detriment,” Dover stated.

A spokeswoman for Seminole County declined to comment on the issue because in the pending litigation.

Shanks, a state legislator, stated that the Internet cafes started appearing in dozens of states about five years ago and had been growing ever since.

His advice to any state considering sweepstakes regulation was to make the laws on sweepstakes and Internet cafes clear. “If your going to keep them then regulate them, thats what we’re trying to do in Florida”

Shanks tried to get legislation passed in the 2011 session that would have regulated the sweepstakes games at Internet cafes, but it failed to get out of committee. Now, he said, he has more support, and a bill to regulate the games has been filed for the 2012 Florida session. Casey Rooks is a spokesperson for Internet Sweepstakes Network and can be reached at             1-877-946-2233       or follow him at #ISNsweepstakes on Twitter.

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