What are internet cafes, and are they legal in Ohio?
Dayton police seized machines last week in illegal gambling probe.
The raid last week of the Lucky Day Internet Cafe in Dayton raised questions about internet cafe businesses and how they are regulated.
Dayton police and the Ohio Casino Control Commission reportedly seized about 100 machines at the cafe during an illegal gambling investigation last Wednesday. No arrests have been made. Officials said charges are expected after detectives complete their investigation and meet with the Montgomery County Prosecutor’s Office.
Internet cafes grew out of sweepstakes cafes, which gave away chances to win prizes with the purchase of a product or service, such as internet time or phone cards. The cafes were under intense scrutiny, and while he was Ohio’s attorney general, Gov. Mike Dewine said the cafes were skirting the law with machines that look and operate similarly to illegal slot machines.
A state law that took effect in 2013 barred cafes from awarding cash prizes, and in 2014, the Ohio General Assembly passed a law that gave the Ohio Casino Control Commission authority over internet cafes, which must be licensed and use only commission-approved skill-based amusement machines (SBAMS).
“Illegal gambling establishments have a long history of masquerading as legitimate SBAM operators, and the commission’s regulatory framework is designed to make it easier to identify and shut down those operating in violation of the law,” said Jessica Franks, director of communication for the Ohio Casino Control Commission.
What is a skill-based amusement machine?
Legal skill-based amusement machines include classic arcade games, pinball, crane/ claw machines and games like those found at family entertainment centers that reward players with tickets redeemable for prizes, Franks said.
“The outcome of the game must be based solely on the player’s skill. These games may only reward players with a merchandise prize or a redeemable voucher for a merchandise prize not to exceed $10 wholesale value per play,” she said.
Prizes cannot include cash, gift cards, digital currency or the equivalent. They also cannot award plays on games of chance, lottery tickets, bingo or instant bingo, firearms, tobacco or alcohol or redeemable vouchers for any other prohibited prize. However, a gas card that can only be
used to purchase gasoline is allowed.
What are the types of SBAMS?
The Ohio Casino Control Commission has classified SBAMS into three categories:
Type A: Games that do not allow a player to receive a prize as a reward for playing the game, with the exception of free replays, such as pinball and arcadestyle games.
Type B: Games in which the player uses skill to obtain a prize wholly contained within the machine, such as crane and claw-style games.
Type C: Redemption-style games in which a player would redeem tickets, tokens or vouchers awarded from the machine to obtain a prize, such as pop-a-shot basketball and skee-ball.
“There are currently 452 games approved for use in Ohio,” Franks said.