Lakewood Eyes Extending Moratorium of Internet Gaming Establishments

No Internet gaming cafés, sweepstakes gaming cafés or computer game centers have opened in Lakewood.

And some city officials hope to keep it that way.

In October, with at least one Internet gaming café knocking on the door, passed a 6-month moratorium to sort out the issue — hoping that state legislation would be in place banning the establishments.

At Monday’s council meeting, officials discussed keeping businesses that feature computer games (billed as entertainment) from moving into the city — for at least another six months.

Lakewood Law Director Kevin Butler said he hopes the state has settled the issue — what he referred to as “an attempt at legalized gambling” — by then.

Here’s how it works: Customers pay per minute to use the Internet, and while online they earn credits to play games of chance. There are cash payouts for those who are successful.

“Essentially, they’re cast as loopholes to the prohibition against gambling in Ohio,” said Butler. “And since there’s been enough of a question of law in the state whether they’re permissible, the law needs to be developed further.”

Neighboring communities such as Brook Park and Parma Heights have approved the establishments, but Lakewood hopes to keep them out. Other communities, such as Strongsville, .

And others, like Berea, have drafted regulations that allow the businesses to operate only in certain sections of the city and between certain hours.

“It’s a very big issue,” said Council President Mary Louise Madigan. “It affects every part of the city, but it particularly affects my ward in the East End, so I am very relieved that we’re going to consider it again.”

In 2009, a municipal court judge in Toledo ruled that Internet sweepstakes operations were not gambling and fall outside state gambling laws, because sweepstakes winnings are predetermined by computer and not by games of skill or chance, according to a story last year in cleveland.com.

But around the state, more and more courts are coming down in favor of municipalities who don’t want the gaming establishments — most recently in Columbus.

“Relying on this kind of case, the state legislature is eventually going to weigh in on this legislation. We’re hearing that the legislature may move soon on this very issue.”

The city’s proposal was referred to the council’s next committee of the whole meeting.