What are internet cafes, and are they legal in Ohio?

ORIGINAL CUTLINE: The Spin-In-Win Internet Cafe, 3958 Linden Ave. is located two doors down from Mega Play, 3964 Linden Ave. Dayton Internet sweepstakes cafes were the latest illegal game to pop up in Ohio’s young gambling scene, and experts and lawmakers say it won’t be the last.Gambling is illegal in Ohio, per the state Constitution, except for a handful of large, state-regulated games: State-run lottery, charitable gaming, four casinos and horse racing.The exceptions have carved out billions a year in revenues, some of which goes to schools, local governments and law enforcement and charities.But lawmakers, urged on by law enforcement and the state attorney general, decided Internet sweepstakes cafes don’t belong among Ohio’s games. Earlier this year, they enacted House Bill 7 to limit prize payouts to less than $10 and authorize the attorney general and Bureau of Criminal Investigation to raid cafes suspected of breaking the law.Cafe owners, who lure customers with the promise of big jackpots, say the limits would force them to close their doors. Owners are fighting back, gathering signatures for a referendum on the bill. But their efforts might be for naught, as lawmakers move forward a second bill that attempts to close cafes by limiting the percent of gross receipts a business can make from sweepstakes promotions.The plight of Internet cafes shows Ohio’s patchwork gaming laws leave room for new gambling operations and lawmakers are inclined to take creative routes to shutting them down. LISA POWELL /STAFF

Credit: Lisa Powell

Credit: Lisa Powell

The Spin-In-Win Internet Cafe, 3958 Linden Ave. in Dayton. STAFF FILE
Local News
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March 19, 2024
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The raid last week of the Lucky Day Internet Cafe in Dayton raised attention 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 a 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 rewarding 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 arcade-style games
  • Type-B: Games where 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 where 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.

How to get help

The Ohio Problem Gambling Helpline at 800-589-9966 offers help 24/7.

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Jen Roppel Balduf covers breaking news for the Dayton Daily News. She earned a bachelor of science in journalism degree from Ohio University and also writes for the Journal-News, Springfield News-Sun and Dayton.com.