Bill to Regulate Internet Cafes Introduced

Bill to Regulate Internet Cafes Introduced

HB 101 has been introduced. This proposed legislation calls for regulation rather than an outright ban of Internet cafes. Among its provisions:

  • Establishment of a state lottery commission office of sweepstakes compliance which would license and oversee operation of sweepstakes parlors;
  • Allow municipalities and townships to govern Internet cafes in their jurisdiction. They could either outright ban such establishments or subject them to local zoning regulations;
  • Require third-party lab analysis of sweepstakes software that would verify games as sweepstakes and not slot machines or illegal gambling;
  • Criminal background checks of software vendors and store owners;
  • Prohibit the sale of alcohol at Internet cafes;
  • Prohibit a single prize payout of greater than $5,000 and permit only cash payouts;
  • Prominent display of operator’s license and sweepstakes software certification.
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