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An Internet café (also known as a cyber café) is a café (or a convenience store or a fully dedicated internet-access business) that provides Internet access to the public. The fee for using a computer is generally charged as a time-based rate.

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History[edit]

The first online café in South Korea called Electronic Café opened in front of Hongik University in March 1988 by Ahn Sang-Su and Keum Nuri in Seoul. It had two 16bit computers connected to Online service networks through telephone lines. Online service users’ offline meetings were held in the Electronic Café, which served as a place that connected online and offline activities. The opening of the online café in Korea was 2–3 years ahead of other countries.^[1]

The online café phenomenon in the United States was started in July 1991 by Wayne Gregori in San Francisco when he began SFnet Coffeehouse Network. Gregori designed, built and installed 25 coin-operated computer terminals in coffeehouses throughout the San Francisco Bay Area. The café terminals dialed into a 32 line Bulletin Board System that offered an array of electronic services including FIDOnet mail and, in 1992, Internet mail^[2] being the first company to introduce internet access (email only) in a public venue.

The concept of a café with full Internet access (and the name Cybercafé) was invented in early 1994 by Ivan Pope. Commissioned to develop an Internet event for an arts weekend at the Institute of Contemporary Arts (ICA) in London, and inspired by the SFnet terminal based cafes, Pope wrote a proposal outlining the concept of a café with Internet access.

After an initial run in late 1993 as a café showcasing computers, a bar called CompuCafé was established in Helsinki, Finland in the spring of 1994 featuring both Internet access and a robotic beer seller.^[3]

Around June 1994, The Binary Cafe, Canada's first Internet café, opened in Toronto, Ontario.

Inspired partly by the ICA event, a commercial establishment of this type, called Cyberia, opened on September 1, 1994, in London, England. In January 1995, CB1 Café in Cambridge, installed an Internet connection and is the longest running Internet Café in the UK, still operating today.^[4]

The first public, commercial American Internet café was conceived and opened by Jeff Anderson and Alan Weinkrantz in August 1994, at Infomart in Dallas, Texas, and was called The High Tech Cafe.^[5]

The Scottish Bar is the first Internet café in French-speaking Switzerland, connected on June 27, 1995, by Pierre Hemmer and his company MC Management & Communication.

Three Internet cafés subsequently opened in the East Village neighborhood of New York City: Internet Cafe, opened by Arthur Perley, the @Cafe, and the Heroic Sandwich.^[6] In 1996, the Internet café Surf City opened in downtown Anchorage, Alaska.

A variation of Internet café called PC bang (similar to LAN gaming centers) became extremely popular in South Korea when StarCraft was released in 1998. Although computer and broadband penetration per capita were very high, young people went to PC bangs to play multiplayer games.

Characteristics[edit]

Internet cafés are located worldwide, and many people use them when traveling to access webmail and instant messaging services to keep in touch with family and friends. Apart from travelers, in many developing countries Internet cafés are the primary form of Internet access for citizens as a shared-access model is more affordable than personal ownership of equipment and/or software. A variation on the Internet café business model is the LAN gaming center, used for multiplayer gaming. These cafés have several computer stations connected to a LAN. The connected computers are custom-assembled for gameplay, supporting popular multiplayer games. This is reducing the need for video arcades and arcade games, many of which are being closed down or merged into Internet cafés. The use of Internet cafés for multiplayer gaming is particularly popular in certain areas of Asia like India, China, Taiwan, Hong Kong, South Korea and the Philippines. In some countries, since practically all LAN gaming centers also offer Internet access, the terms net cafe and LAN gaming center have become interchangeable. Again, this shared-access model is more affordable than personal ownership of equipment and/or software, especially since games often require high end and expensive PCs.

There are also Internet kiosks, Internet access points in public places like public libraries, airport halls, sometimes just for brief use while standing.

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Many hotels, resorts, and cruise ships offer Internet access for the convenience of their guests; this can take various forms, such as in-room wireless access, or a web browser that uses the in-room television set for its display (usually in this case the hotel provides a wireless keyboard on the assumption that the guest will use it from the bed), or computer(s) that guests can use, either in the lobby or in a business center. As with telephone service, in the US most mid-price hotels offer Internet access from a computer in the lobby to registered guests without charging an additional fee, while fancier hotels are more likely to charge for the use of a computer in their 'business center.'

For those traveling by road in North America, many truck stops have Internet kiosks, for which a typical charge is around 20 cents per minute.^[7]

Internet cafés come in a wide range of styles, reflecting their location, main clientele, and sometimes, the social agenda of the proprietors. In the early days they were important in projecting the image of the Internet as a 'cool' phenomenon.

Evolution[edit]

Internet cafés are a natural evolution of the traditional café. Best free synthesizer software. Cafés started as places for information exchange, and have always been used as places to read the paper, send postcards home, play traditional or electronic games, chat to friends, find out local information.

As Internet access is in increasing demand, many pubs, bars and cafés have terminals, so the distinction between the Internet café and normal café is eroded. In some, particularly European countries, the number of pure Internet cafés is decreasing since more and more normal cafés offer the same services. However, there are European countries where the total number of publicly accessible terminals is also decreasing. An example of such a country is Germany. The cause of this development is a combination of complicated regulation, relatively high Internet penetration rates, the widespread use of notebooks, tablets and smartphones and the relatively high number of wireless internet hotspots. Many pubs, bars and cafés in Germany offer wireless internet, but no terminals since the Internet café regulations do not apply if no terminal is offered. Additionally, the use of Internet cafés for multiplayer gaming is very difficult in Germany since the Internet café regulations and a second type of regulations which was originally established for video arcade centres applies to this kind of Internet cafés. It is, for example, forbidden for people under the age of 18 to enter such an Internet café, although particularly people under 18 are an important group of customers for this type of Internet café.

While most Internet cafés are private businesses many have been set up to help bridge the 'digital divide', providing computer access and training to those without home access. For example, the UK government has supported the setting up of 6000 telecentres.

In Asia, gaming is very popular at the Internet cafés. This popularity has helped create a strong demand and a sustainable revenue model for most Internet cafés. With growing popularity, there also comes with this a responsibility as well. In fighting for competitive market share, the Internet cafés have started charging less and hence are adopting alternate means to maximize revenue. This includes selling food, beverages, game and telephone cards to its patrons.

By 2010, a variation of the internet café known as a 'sweepstakes parlor' had become widespread in certain regions of the United States. These facilities offer entries in a contest to customers who purchase internet usage. The result of the customers' entries are revealed using software installed on the computer terminals, which may simulate the appearance and operation of casino games such as a slot machine. Although meant to resemble it, these sweepstakes and software are designed in such a way that they could legally be considered sweepstakes rather than gambling. Sweepstakes parlors have faced scrutiny by local governments, who have argued that despite arguments claiming otherwise, sweepstakes parlors are a form of illegal gambling, and their patrons are more interested in playing the sweepstakes than actually using their purchased internet time. A large number of these locations have faced raids by officials, while a number of states have enacted laws meant to ban them.^[8][9][10]

Legal issues[edit]

In 2003 the EasyInternetcafé chain was found liable for copyright infringement occurring when customers used its CD-burning service to burn illegally downloaded music to their own CDs.^[11]

In 2005 Italy began requiring entities such as Internet cafés to collect photocopies of the passports of Internet, phone, or fax-using customers as a result of anti-terrorism legislation passed in July of that year.^[12]

Venues[edit]

Australia[edit]

Netcafe opened in St Kilda at the Deluxe Café on April 4, 1995, inspired by the Internet café phenomenon that was going on in Seattle. As Australia's first Internet café, founders included Gavin Murray, Rita Arrigo and Christopher Beaumont. Direct from London's Cyberia they were joined by Kathryn Phelps and partnerships with Adam Goudie of Standard Computers for hardware and Michael Bethune from Australia Online, Australia's first ISP for of course their Internet access. In 1995 it was delivered via a standard analogue phone line using a 9600-Baud US Robotics Modem. Cafe.on.net also opened on Rundle Street in Adelaide in 1995, with the support of Internode's Simon Hackett.

Brazil[edit]

In Brazil, the initial concept brought by Monkey Paulista was based on the business model used by Internet cafés in South Korea, since this was the first house LAN to exist in Brazil, inaugurated in São Paulo, starting its activities in 1998. The company closed in 2010. However, just a week later for reasons of bureaucracy, the company Lan Game @ The House^[13] was opened and today is the first LAN house of Brazil in activity. Today it is seen as the country as a way to test new technologies and demonstration of games and products.

Mainland China[edit]

According to the 'Survey of China Internet Café Industry' by the People's Republic of China Ministry of Culture in 2005, Mainland China has 110,000 Internet cafés, with more than 1,000,000 employees contributing 18,500,000,000 yuan to P.R. China's GDP. More than 70% of Internet café visitors are from 18 to 30 years old. 90% are male, 65% are unmarried, and 54% hold a university degree. More than 70% of visitors play computer games. 20% of China's Internet users go to Internet cafés.

Internet cafes allow individuals to go about the Internet anonymous, faster, and cheaper than at home. Large Internet cafes of major cities in China are expensive and heavily regulated by Government officials. Large Internet cafes are used by wealthy elite for business transactions and social gatherings. The majority of Internet cafes are small privately owned cafes comprising 90% of the market. (China Tightening Control, 2003) The majority of Internet cafes are unregistered because they do not meet the requirements of government standards or they do not want to go through the lengthy process of registering. According to Hong and Huang only 200 out of 2,400 cafes are registered in Beijing. The Chinese government is cracking down on the number of unregistered Internet cafes because some users spread propaganda, slander, allow pornography, and allow underage users. Crack downs by Chinese Government Officials banned 17,488 Internet Cafes in 2002 and another 27,000 were banned in 2003. (J. Hong, L. Huang) Internet cafes that are getting closed are being replaced with government approved businesses. These pre-approved businesses monitor patrons’ activities and help the government crackdown on offending users. (Xiao, 2003; Qiu 2003)

Milestones:

• Before 1995 – An Internet café called 3C+T appeared in Shanghai, probably the first in China. The price was 20 yuan per hour ($2.50 per hour)
• 1995–1998 – China's Internet cafés proliferate. Playing unconnected games is the main purpose of café users. The average price was 15~20 yuan per hour.
• After 2002 – Heavy censorships were imposed, including real-name registration. At the end of 2004, more than 70,000 Internet cafés were closed in a nationwide campaign.
• 2008 – Microsoft attempts to make Internet cafés profitable in Asia and other emerging markets. After discussions with the governments of these countries, it helps to establish safe Internet cafés.

India[edit]

In India, Internet cafés used by traveling people and business are declining since the arrival of widespread mobile Internet usage. A set of other services are also offered, such as printing of documents or webpages. Operators also help computer illiterates through some government processes (as a part of e-governance in India ). Low speed of mobile Internet and these services offered by Internet cafés help its survival. In India a positive government ID is compulsory for Internet café users in most states.

Indonesia[edit]

According to APWKomitel^[14] (Association of Community Internet Center), there are 5,000 Internet cafés in urban Indonesian cities in 2006 providing computer/printer/scanner rentals, training, PC gaming and Internet access/rental to people without computer or internet access. The website^[15] also contains a directory listing some of these warnet/telecenter/gamecenter in Indonesia. In urban areas, the generic name is warnet (or warung internet) and in rural areas the generic name is telecenter. Warnets/netcafes are usually privately owned as bottom-up initiatives, while telecenters in rural villages are typically government or donor-funded as top-down financing. Information on netcafe/warnet in Indonesia can also be found in a book titled: Connected for Development: Indonesian Case study.^[16]

Currently, no special license is required to operate an Internet café or warnet in Indonesia, except for the ordinary business license applicable to cafes or small shops. Because of hype and poor business planning, many net cafes have closed down. Although the number of Internet cafes are growing, associations such as APWKomitel^[17] urge new Internet café owners to do a feasibility study before planning to open an Internet café, and provide a business model called multipurpose community Internet center or 'MCI Center'^[18] to make the business more sustainable and competitive. Hourly usage rate varies between Rp 2500-15000 ($0,27 - 1,60)

Japan[edit]

Japan has a strong Internet cafe culture, with most serving a dual purpose as joint Internet-manga cafes. Most chains (like Media Cafe Popeye and Jiyū Kūkan) allow offer customers a variety of seating options, including normal chair, massage chair, couch, and flat mat. Customers are then typically given unlimited access to soft drinks, manga, magazines, Internet, online video games, and online pornography. Most offer food and shower services for an additional fee. In fact, many purchase 'night packs' and shower/sleep in the cafes, giving rise to a phenomenon known as 'net cafe refugee' or 'net cafe homeless'.^[19]

Kenya[edit]

Internet cafés are prevalent in the city of Mombasa, as poverty and unreliable infrastructure do not make personal Internet a viable option for many citizens. The cafés are often combined with a variety of other businesses, such as chemists, manicurists, repair shops, and convenience stores. Video gaming has become particularly profitable in Internet cafés in Kenya in recent years.

Philippines[edit]

In the Philippines, Internet cafés or better known as computer shops are found on every street in major cities and there is at least one of which in most municipalities or towns. There are also Internet cafés in coffee shops and malls. High-end restaurants and fast food chains also provide free broadband to diners. Rates range from P10 ($0.20) on streets, up to P100 ($2) in malls.In some major cities with existing ordinances regulating Internet cafés (e.g. Valenzuela, Marikina, Davao, Lapu-lapu and Zamboanga), students who are below 18 years of age are prohibited from playing computer games during regular class hours. Depending on the city, regulations varies on their exact details and implementation.^[20] Such city ordinances usually also requires Internet café owners to:

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• Install filtering software to block adult oriented sites
• Prohibit the sales of alcoholic drinks and cigarettes inside their establishment
• Allow open view of rented computers (i.e. no closed cubicles)
• Front wall panel is 50% transparent to allow a clear view of the interior of the establishment
• Adequate lighting both inside and outside of the establishment to allow a clear view of the interior at all times

Poland[edit]

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The first Internet café in Poland was opened in 1996. Such establishments soon became very popular among the Polish population, especially young people, who at the time still rarely had access to computers with high-speed Internet at home. They were commonly used to play games like Icy Tower or Counter-Strike, as well as for instant messaging on the Gadu-Gadu client. Internet cafés began losing popularity after Telekomunikacja Polska launched the ADSL Neostrada service in 2001, providing home Internet access to many Poles, and most establishments were shut down by the 2010s.

Slovakia[edit]

In Slovakia, the first Internet café was opened officially in the city of Košice on July 17, 1996, providing services such as e-mail, Gopher, News, Telnet, WWW, Talk and others to the general public.^[21]

South Korea[edit]

In South Korea, Internet cafés are called PC bangs.^[22] They are ubiquitous in South Korean cities, numbering over 20,000.^[23] PC bangs mostly cater to online game playing for the younger generation. On average and mode, use of a PC bang computer is priced at around 1,000 won per hour (about $0.88 USD).

Taiwan[edit]

Internet cafés are omnipresent in Taiwan, and especially concentrated in major cities, namely Taipei and Kaohsiung.The Internet café is called a '網咖' (Wǎng kā) in traditional Chinese. The first character literally means 'net' and the second character is the first syllable of 'café.'The rate is consistent at about NT$10~20 in the most part, but prominent districts, such as the Eastern District of Taipei, can charge users up to NT$35 per hour. With the growth of smartphone ownership and free Wi-Fi networks in all major public attractions, the Internet cafés now primarily cater to gamers, and some even provide food and drinks.

Vietnam[edit]

In Vietnam, many people go to Internet cafés for $0.25 an hour, as it is very cheap for them.Internet café in Vietnamese is 'Quán Nét' or 'Tiệm Nét'. 'Quán', 'Tiệm' mean 'store' and 'Nét' means 'Net' (Internet).

United States[edit]

Reputedly, the first kosher cybercafe was the IDT Cafe in New York City's diamond district, opened in the spring of 1997.^{[24][25][26][27][28]}

See also[edit]

Notes[edit]

1. ^'Cyber Internet History Museum'. Eng.i-museum.or.kr. 2009-09-24. Archived from the original on 2015-01-09. Retrieved 2013-11-02.
2. ^'SFnet Archive Coffee Bar Network'. Sfnet.org. Retrieved 2012-02-04.
3. ^'Tällainen oli Helsingin CompuCafé, 'maailman ensimmäinen nettikahvila', jota esittelevää videota ihastellaan nyt ulkomaillakin' (in Finnish). Nyt. 2016-09-28. Retrieved 2016-09-28.
4. ^Paul Mulvey (1994-12-06). 'Coffee and a byte?'. The Bulletin (Australian periodical). Archived from the original on 2008-03-08. Retrieved 2010-06-20.
5. ^Lewis, Peter H. (1994-08-27). 'Here's to the Techies Who Lunch'. The New York Times. Retrieved 2007-11-17.
6. ^'New York's Latest Virtual Trend: Hip Cybercafes on the Infobahn'. Los Angeles Times. 1995-06-29. Retrieved 2009-08-12.
7. ^'Internet Web Stations'. Archived from the original on 2007-10-13. Retrieved 2007-12-03.
8. ^Eder, Steve (August 22, 2012). 'Gambling Raids Hit Cafes'. Wall Street Journal. Retrieved 10 January 2013.
9. ^Gillette, Felix (April 21, 2011). 'The Casino Next Door'. Bloomberg Businessweek. Retrieved 10 January 2013.
10. ^Saulny, Susan (May 6, 2010). ''Sweepstakes' Cafes Thrive, Despite Police Misgivings'. The New York Times. Retrieved 10 January 2013.
11. ^Tim Richardson (28 Jan 2003). 'EasyInternetcafe loses CD burning court battle'. Retrieved 2015-09-05.
12. ^Sofia Celeste (October 4, 2005). 'Want to check your e-mail in Italy? Bring your passport'. Retrieved 2015-09-05.
13. ^'The @ Game'. Taglan.blogspot.com. 2011-07-19. Retrieved 2012-02-04.
14. ^'Home of APWKOMITEL'. Apwkomitel.org. Archived from the original on 2012-01-26. Retrieved 2012-02-04.
15. ^'Warnet di Sumatra'. Apwkomitel. Archived from the original on 2012-02-17. Retrieved 2012-02-04.
16. ^[1]Archived August 9, 2007, at the Wayback Machine
17. ^'wsis-online.org'. wsis-online.org. Archived from the original on 2012-02-17. Retrieved 2012-02-04.
18. ^WSIS Webmaster. 'World Summit on the Information Society'. Itu.int. Retrieved 2012-02-04.
19. ^'Japan homeless living in internet cafes'. news.bbc.co.uk. BBC. 21 March 2009. Retrieved 16 August 2013.
20. ^'Internet Cafe City Ordinance - Philippines'. iCafeProject. 2012-06-19. Retrieved 2012-06-20.
21. ^a.s., Petit Press. 'V Košiciach oficiálne otvorili Internet Café s prístupom do celosvetovej počítačovej siete'. www.sme.sk (in Slovak). Retrieved 2018-08-10.
22. ^In Korean, 'bang' (Hangeul: 방; Hanja: 房) means 'room', so the term literally means PC room.
23. ^Taylor, Chris (2006-06-14). 'The future is in South Korea'. CNN. Retrieved 2007-12-21.
24. ^Chen, David W. (20 February 1997). 'First, there was the cybercafe. Now, the kosher cybercafe'. The New York Times. New York: Sociology 265 – Religion, Culture and Society. Archived from the original on 24 August 2012. Retrieved 20 June 2013.
25. ^'Food Timeline, Food & the Internet'. 28 May 2013. Retrieved 20 June 2013.
26. ^'Kosher cafe makes itself into a cybercafe'. Ocala Star-Banner. February 16, 1997. Retrieved June 21, 2013.
27. ^Gardiner, Beth (March 23, 1997). 'Kosher cybercafe'(PDF). Retrieved June 21, 2013.^{[permanent dead link]}
28. ^Chen, David W. (February 13, 1997). 'Food Megabite, Anyone? This Cybercafe Is Kosher'. The New York Times. New York. Retrieved 21 June 2013.

References[edit]

• China Tightening Control Over Internet Cafes, 2003. Reuters, June 10.
• Hong, J. and L. Huang (2006). 'A split and swaying approach to building information society: The case of Internet cafes in China.' Telematics and Informatics 22(4): 377-393.
• John Flinn (1991). 'High-Tech Small Talk at City's cafes', The San Francisco Examiner, Front Page.
• Katherine Bishop (1992). 'The Electronic Coffeehouse', New York Times.
• John Boudreau (1993). 'A Cuppa and a Computer', Washington Post, Front Page.
• Marian Salzman (1995). 'SFnet Leads Cyber Revolution', San Francisco Examiner.
• SFnet.org, Press Archive.
• 'Stewart (2000). Cafematics: the Cybercafe and the Community, in Community Informatics: Enabling Communities with Information and Communications Technologies. ed M. Gurstein. Idea Group, Toronto'(PDF).(202 KB)
• 'Sonia Liff and Anne Sofie Laegran (2003) Cybercafés: debating the meaning and significance of Internet access in a café environment, New Media & Society Vol 5 (3)'(PDF).
• 'Anne-Sofie Lagran and James Stewart(2003), Nerdy, trendy or healthy? Configuring the Internet cafe, New Media & Society Vol 5 (3) 35'(PDF).
• Xiao, Q., 2003. China's Internet Revolution. USC Annenberg Online Journalism Review.

External links[edit]

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• Cybercafes at Curlie

A sweepstakes parlor (or sweepstakes café) is an establishment that gives away chances to win prizes with the purchase of a product or service, typically internet access or telephone cards. They began to appear in the Southern United States some time around 2005, and quickly proliferated.^[1] Purchased entries are redeemed using computers at the establishment, which contain specialized software that presents whether a participant has won a prize. Results are often presented using mechanisms that resemble casino games, such as slots, and the facility itself may contain casino motifs in their overall decor.

There is controversy associated with the operation of such businesses and whether or not they violate anti-gambling laws. Operators and the companies that provide the systems used maintain that they operate in accordance with laws governing promotions and sweepstakes, but critics of sweepstakes parlors have argued that these establishments are designed to exploit technicalities to skirt gambling laws, and that their patrons are more interested in using the facilities for gambling than actually using the services that they had purchased. Multiple U.S. states have enacted laws designed to ban or restrict the operations of sweepstakes parlors.

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Business model[edit]

A sweepstakes parlor sells a service or product, usually internet access or telephone cards. When a purchase is made, a number of chances to win prizes are given to the consumer. Proponents compare this practice to similar promotional giveaways by other businesses, such as McDonald's' Monopoly promotion, which are legal in most areas.^[2] In one example of a sweepstakes parlor that sells phone cards, the operator gives away 100 chances for every dollar spent on a phone card.^[3] Chances may also be given without a purchase just for coming into the establishment.^[1]

Sweepstakes parlors are most often located in or adjacent to strip malls.^[4][a] Computer terminals are set up inside the parlors, where patrons can see if they have won a prize by playing a casino-style game, similar to a video slot machine. The decor of the cafes may also include casino-inspired elements and motifs.^[1]

The software necessary to operate a sweepstakes parlor may be obtained from one of a number of companies; in return for providing the software, a percentage of the profits is typically paid. There are also installation companies that provide assistance in setting up cafes.^[1]

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Legal challenges[edit]

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Sweepstakes parlors have attracted scrutiny from law enforcement, and local and state legislators. In at least 20 states, the legality of the cafes has faced challenges in the form of criminal complaints, lawsuits, and bans.^[2] The industry formed lobbies to protect and promote their legal interests.^[1][6] The industry has maintained, at times successfully, that the business model and the systems used do not meet the legal definition of gambling in the US. The federal definition characterizes gambling as meeting three criteria: consideration, prize, and chance.^[7] Sweepstakes parlor operators have contended that the prizes are predetermined, and therefore the system does not meet the criterion of chance. They have also held that chances are given even without purchase, and therefore the criterion of consideration is not met.^[1]

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In 2013, sweepstakes parlors were banned in Florida, Ohio and several California municipalities.^[8] Cases pertaining to the parlors reached the state supreme courts of both Alabama and North Carolina. In Alabama, one operator's sweepstakes model was found to be in violation of state gambling laws; the court agreed with District Attorney Barber that the system used fit the description of a slot machine, that chance occurred at the point of sale, and that consideration was not negated even though it was possible to obtain free chances.^[9] In North Carolina, the industry argued that a statute prohibiting sweepstakes from using an 'entertaining display' violated their First Amendment rights, but the North Carolina Supreme Court disagreed and upheld the ban.^[10]

The sweepstakes industry however, attempted to work around these restrictions by restyling their games; in North Carolina, sweepstakes software providers implemented 'pre-reveal' mechanisms, which attempted to comply with the prohibition of 'entertaining displays' by revealing the player's prize in plain text before the game is played.^[11][12] In October 2013, two Florida sweepstakes parlors reopened as charity bingo parlors (which are legal under state law), but also offering electronic pull-tabs ('instant bingo'). In December 2013, following a report on them by the Sarasota Herald-Tribune, the two locations were issued subpoenas by police requesting access to their financial records. Rather than comply, the two locations voluntarily shuttered instead.^[13][14]

In May 2015, federal prosecutors announced that they had agreed to a settlement with five sweepstakes software providers, under which they would stop doing business in North Carolina by July 1, 2015.^[15]

Other opposition[edit]

Advocates for legal gaming also object to the parlors on the grounds that they are unregulated. They argue, among other things, that the sweepstakes parlors encroach on the business of state-run lotteries and licensed gambling, thus reducing the alleged benefits to public programs that get a portion of funds from legal gambling.^[16] In addition, in states where a compact exists under the Indian Gaming Regulatory Act, if sweepstakes parlors are not made illegal they may continue to conflict with the compact.^[1]

Florida's sweepstakes parlor ban also had a chilling effect on arcades; the law prohibits devices defined as 'gambling machines' from awarding prizes more than $0.75 in value and accepting cards or bills as payment. Although the law does contain specific distinctions meant to exclude arcade redemption games from its scope, the law attracted concern from the arcade industry, who felt that it could be interpreted to ban their operation—especially at facilities that use card-based systems for credits rather than tokens.^[17][18] In January 2015, as a cautionary measure, Disney Parks removed redemption and claw machines from the arcades of its Florida resorts: representatives of the company have supported attempts to clarify the wording of the sweepstakes parlor ban to reduce its potential effects on arcades.^[19]

See also[edit]

Notes[edit]

1. ^The website for the promoter SweepsCoach spells it out: 'Look for a place near your customers. Lower to middle income spots are great. Strip malls are great. The kinds of businesses you may want to be near include Wal-Mart, check cashing businesses, pawn shops, maybe slightly seedy but still safe.'^[5]

References[edit]

1. ^ ^abcdefgGillette, Felix (April 21, 2011). 'The Casino Next Door'. Bloomberg Businessweek. Retrieved 10 January 2013.
2. ^ ^abEder, Steve (August 22, 2012). 'Gambling Raids Hit Cafes'. Wall Street Journal. Retrieved 10 January 2013.
3. ^Saulny, Susan (May 6, 2010). ''Sweepstakes' Cafes Thrive, Despite Police Misgivings'. The New York Times. Retrieved 10 January 2013.
4. ^Kelley, Dan (May 13, 2012). 'Gambling on a Loophole'. The Daily. Retrieved 10 January 2013.
5. ^'Getting Started: A-Z'. SweepsCoach. Retrieved 9 March 2013.
6. ^Poirier, Ray (January 7, 2013). 'Casino Insider'. GamingToday. Retrieved 11 January 2013.
7. ^Thompson, William N. (2001). Gambling in America: an Encyclopedia of History, Issues, and Society. Santa Barbara, Calif. [u.a.]: ABC-CLIO. pp. 416, 421. ISBN1576071596.
8. ^'Ohio bans those dangerous dens of iniquity, Internet cafes'. Ars Technica. Retrieved 24 May 2013.
9. ^Alabama Supreme Court (December 1, 2006). 'Barber v. Jefferson County Racing Association'. FindLaw. Retrieved 11 January 2013.
10. ^North Carolina Supreme Court (December 14, 2012). 'No. 170A11-2: Sandhill Amusements Inc., etc. v. State of North Carolina, etc'. Justia.com. Retrieved 9 January 2013.
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