That’s right, they’re back: sweepstakes cafes continue to pop up around the world, looking for space between the holes in video gaming legislation so that their businesses that provide electronic games of opportunity are not technically considered to be unlawful gambling enterprises. Among the latest states to handle these sweepstakes cafes is California, which is now searching to close the loopholes that allow these businesses to work.

Assemblymember Rudy Salas (D-Bakersfield) has introduced a bill towards the California Legislature that will currently close loopholes that allow sweepstakes cafes to operate in venues throughout their state. According to Salas, these cafes attract an element that is criminal otherwise safe neighborhoods.

‘Folks over in Oakland within the Bay region, obviously within the Central Valley down to Riverside, down to San Diego County…this can be an issue that not only affects genuine local organizations, but it also affects the safety that is public’ Salas said.

Bureau of Gaming Control Says Venues Are Prohibited

The California Bureau of Gaming Control issued an Advisory December that is last saying sweepstakes parlors were prohibited by state legislation, but the majority of venues remained in procedure. Salas’ bill would make operating a sweepstakes gambling operation an unfair business practice. That will start the door to allowing cities and counties to bring civil fees against operators whom continued to offer such games.

According to Salas, local companies have been visiting him with concerns that these cafes are ensuing within an upsurge in criminal activity near their areas.

‘I’ve seen issues of drugs, of prostitution, impacts to local, legitimate businesses in these strip malls where these things are occurring,’ he said.

The bill seems like it might well pass with little resistance. Already, it offers cleared the Assembly Governmental Organization Committee with bipartisan support.

That move comes after police raided a Bakersfield sweepstakes café just fourteen days ago, seizing more than $3,000 and dozens of computers. The Kern County District Attorney’s workplace had already won a ruling during the appeals court level, nevertheless the shop had reopened making use of new software in an attempt to get around that judgment.

‘Our knowledge of what the courts have actually stated is that sweepstakes are illegal, they are gaming, and video gaming is unlawful in California,’ said Sergeant Joe Grubbs.

Sweepstakes Games Proliferating in lots of States

Sweepstakes parlors have been a problem in states around the world, including South Carolina, Connecticut and Florida. The businesses generally work by shaping their gambling games as ‘sweepstakes’ in the hopes of getting around state gaming laws.

This is frequently done by requiring players to purchase products such as phone cards or Internet service time. But the products aren’t the real draw: by buying them, players gain credits which they can use at computers in the place. On the computer systems are usually simulated slots and casino games. In another attempt to get around gambling regulations, each credit is really an entry right into a contest: whether a person wins or loses is already determined before they ‘play’ the games.

A number of these venues have proven to be very popular. Nevertheless, since they are totally unregulated and typically run against the spirit of video gaming laws, states have quickly moved to shut loopholes that enable sweepstakes cafes to operate.

According to Salas, he caused the Department of Justice, the FBI and local authorities in California so as to craft a bill that would stop such cafes from providing sweepstakes games in their state.