The city of Wadsworth, by a 4-2 vote, approved legislation to regulate sweepstakes cafes. A six-month moratorium that had been in place was to expire April 22.
Among the new rules:
- An annual licensing fee of $2,000. This will fund the required background checks on business owners and employees;
- Existing, as well as new, businesses will have to comply;
- A 3-member commission will be established to hear complaints against the businesses;
- Sale of alcoholic beverages will be prohibited;
- No one under the age of 18 will be permitted on the premises;
- Photo ID’s of all winners will be required. If the winnings exceed $600, the operator must keep a file that includes photo ID, name, home address and prize description;
- Violators are subject to a $100 fine for each offense;
- A $250 fine will be imposed on any business operating without a license.
Meanwhile, the city of Cleveland has extended their moratorium on Internet cafes. Originally set to expire April 18, the moratorium has been extended an additional six months.
And as mentioned in our news of March 28 (see ‘Proposed Regulations for Internet Cafes’), Rep. Nan Baker and Rep. Marlene Anielski have introduced HB 195, legislation that would regulate Internet sweepstakes businesses.