Internet Casino Cafes Exposed

You’ve probably walked into a gas station and seen a bank of 3-5 video gambling machines along one wall.

If you’re like anything like me you were probably curious but recognized them for what they are.

Let’s face it, though. Those machines are a complete sham.

I’ve never seen one in a 7-11, Racetrac, a QT, or any reputable convenience store.

I can’t even imagine seeing one in a Buc-ee’s.

If Buc-ee’s had one, though, I’d be there right now.

But they don’t, and that has me thinking:

Why not?

This post explores what these casino cafes are, how they operate, and what you should avoid.

The Basics of Casino Cafes

Casino cafes are also sometimes called sweepstakes cafes. These businesses allow customers the chance to buy their products for the opportunity to win prizes.

Usually, these “products” are in the form of internet access or calling cards. These casino cafes began showing up in the early 2000s mostly in the South and rapidly grew their territory. They spread like weeds through certain areas across the United States.

When you buy these services from a casino cafe you’ll receive entries. The entries can then be used to play slots or video poker style games to win prizes not much different than a brick and mortar casino.

The logic here is that you may feel more comfortable buying a service than traditional gambling.

What does that sound like to you?

It’s a slippery slope and a business model that mirrors legitimate casinos.

Some players quickly become hooked on buying more of the service to win prizes.

It’s not exactly gambling though, right?

Wrong.

As casino cafes have blossomed in popularity over the past 2 decades, they’ve also drawn the presumably unwanted attention of the governing bodies — not to mention a ton of side-eye from the gambling community.

Legal Controversies and Online Casino Cafes

Casino cafes have found themselves in the crosshairs of local and state gaming commissions and lawmakers. The legality of these cafes has been through the wringer.

In fact, about 20 states have created criminal charges and all-out bans on the cafes.

The casino cafe industry has built a lobbying force with the sole purpose of protecting its business and legal rights. The industry maintains that its business model and technologies do not meet the legal definition of gambling.

Most of these casino cafes have succeeded in proving their case.

3 concepts are used in defining gambling in the United States:

• Opportunity
• Recognition
• Award

The industry contends that even if you disregard the purchase of their services, options are given, and the definition of what constitutes gambling aren’t met.

Casino cafes took some major blows in 2013. These hardships include:

• Ohio, Florida, and many areas of California outlawed the cafes
• State supreme courts cases were filed on North Carolina and Alabama
• The case in Alabama claimed the casino cafes were a blatant disregard of the states’ gambling laws.
• The North Carolina case found the cafe casinos claiming their first amendment rights were being violated. The court disagreed and upheld a ban on the internet cafe casinos.

Court Fallout

Not easily discouraged, casino cafes continued their attempts to do business despite the mounting legal pressure.

Their solution?

Completely overhaul their games and how they play.

Savvy online casino cafes in North Carolina introduced software that showed players the award before the game started. This brought the games in line with some of the new restrictions.

To avoid being shut down for good, some internet casino cafes in Florida rebranded as charity bingo cafes in 2013. This rebranding included the addition of digital pulls or instant bingo.

Following an article that ran in the Sarasota Herald in December of the same year, law enforcement executed search warrants on the businesses. Clearly not wanting to hand over financial statements, the businesses closed on their own volition.

In 2015, a federal court chose to ban 5 casino cafe software companies from operating in North Carolina. This action nearly killed the entire industry.

Community Outcry Regarding Casino Cafes

Advocates for legal gambling are staunchly opposed to internet casino cafes. They contend that these cafes are largely unregulated by existing laws.

Possibly their chief complaint is that these cafe casinos lure customers away from state owned lotteries and legitimate brick and mortar casinos.

Gambling advocates suggest that internet casino cafes siphon revenue from government programs that are funded by money received from legal gambling.

Florida’s ban on casino cafes had an apocalyptic impact on the arcade industry. The law effectively banned any machine traditionally labeled as a “betting machine” from awarding cards or bills.

The gambling laws in Florida does allow concessions for restored arcade games. The legislation has caught the attention of the huge amusement industry. Their primary concern is Florida’s law being bent to be enforced at their attractions.

Amusement parks rely heavily on the installation and implementation of card-based credit rather than token payout for their games.

Disney Parks is Florida’s most visited and most profitable amusement park. In 2015, the park removed all claw and other extraction games from all their Floridian properties, fearing legal action.

Disney has been vocal about their desires to further clarify the way the current laws are written. They aim to mitigate any future unnecessary losses to the arcade or amusement industry.

Where Do Internet Casino Cafes Stand Now?

Almost immediately following Florida’s legislation banning the internet casino cafes, slightly altered versions of cafes started popping up around the state. The casino cafe industry had found a loophole in the law and aimed to exploit it.

This rebranding as arcade gaming parlors or generic office services, while getting an “A” for effort, ultimately failed.

The state finally banned the cafes in any capacity. In a joint effort between local, state, and federal agencies, they managed to halt operations of over 50 casino cafes.

These were owned by Allied Veterans of the World. This was not good news for then Lt. Governor Jennifer Carroll. Her ties to the group caught the eye of law enforcement officials, and she was unceremoniously forced out of her position.

If Florida cleaned house, then Ohio burned it to the ground. Over 800 casino cafes were shut down in the state.

However, many businesses have rebranded as “skill game” parlors and continue to payout in cash.

As has been shown repeatedly, these types of shadowy businesses get shut down and right away pop up as something else. They nearly always come back in some form.

North Carolina has passed nearly identical laws to Ohio with the clear objective of putting the casino cafes down for good.

Like Ohio casino cafes, the NC cafes have become more creative with their business models, constantly staying one step ahead of the latest legislation.

The only gambling options in North Carolina are 2 casinos and the state lottery. The internet casino cafes understand the simple laws of supply and demand.

There’s simply too much money to tuck tail and run.

State officials are continuing to work closely with the locals to indict a handful of casino cafe proprietors. Of course, with all that money pouring in, the owners have circled the wagons and hired some of the best legal defense available.

Conclusion

That’s a clear picture of what these businesses are all about. There’s a lot of money to be made through these casino cafes.

And they’ll continue to pop up under the clever veil of other businesses.

I believe in liberty. If you want to go down to Johnny Joe’s gas station and spend your money on these games, that’s between you and your wallet. So, please don’t assume I’m calling people that play these games criminals or stupid.

Here’s the truth:

It’s none of my business.

I’m just here to share the type of business that’s being run and recommend you play at the best online casino sites instead.

Yes, I question businesses that work so hard to skirt the law. But I don’t skip the important step of questioning the laws they choose to skirt – you shouldn’t skip that step, either.