The waters just became murkier in northeast Ohio. Two weeks after proposing tough new regulations, Cleveland City Council has placed a moratorium that bans these sweepstakes cafes from opening within the city.

The change was triggered by a police raid on the Cyber House. Cleveland police reported that the games being offered were electronic games of chance, which is considered illegal gambling.

On the very same night, Parma City Council also placed a moratorium on all new Internet cafes. Their moratorium is to last less than 6 months. Establishments already in existence are not affected. They are even permitted to add additional machines, for now.

These latest developments further cloud the issue of Internet sweepstakes cafes. Operators claim they are legal businesses allowing customers to win prizes by purchasing Internet time. Critics say they are gambling trying to exploit loopholes in the law.

Adding to the confusion:

• Currently there are no state or city laws that address these Internet cafes, although Ohio legislators may be working on legislation that would regulate Internet cafes;
• The Ohio Attorney General’s Office has remained moot on the issue, leaving enforcement to local law officials;
• A Toledo judge ruled these cafes are not gambling, but an Akron jury convicted an Internet café owner of gambling charges;
• Cleveland and Parma are among several cities that have declared moratoriums, yet such cafes are open for business in Brook Park, Richmond Heights, Cuyahoga Heights and Newburgh Heights;
• Councilman Sean Brennan of Parma has sponsored a resolution to ask the State to outlaw Internet sweepstakes games.