State Attorney General Martha Coakley says the cafes purport to sell Internet access or phone cards, but those sales are just a pretext to allow people to play online slots or other games.
BOSTON – A public hearing is set for a bill to ban Internet slot cafes, possibly jump-starting a proposal that has languished for months.
The legislation, submitted in July by House Speaker Robert A. DeLeo and Attorney General Martha M. Coakley, is scheduled to be aired by the Joint Committee on the Judiciary at 1 p.m. on March 6 at the Statehouse.
According to Coakley, the cafes purport to sell goods and services such as Internet access or phone cards, but those sales are just a pretext to allow people to play online slots, sweepstakes or other games.
“The proposed legislation will increase penalties for illegal cyber cafes in Massachusetts and is an important step toward protecting consumers," Brad Puffer, director of communications for the attorney general's office, said on Tuesday. "We have always maintained that these ‘cyber cafés’ are really ‘cyber scams’, with no posted odds, minimum odds, or guarantee of pay outs for patrons. This bill will help us enforce illegal gaming, ensuring that companies cannot skirt our laws.”
Gamblers win “points” in the online games which can be redeemed for cash at the cyber café, according to DeLeo.
Beverly Baker, an owner of the Boston Road Cyber Center at 1295 Boston Road in Springfield, said she is concerned about the bill. She also said she is awaiting the outcome of criminal charges pending against the owner of a closed cyber cafe in Chicopee and his business partner. Baker said the eventual resolution of those charges could possibly help determine if cyber cafes can continue to operate in Massachusetts.
A statewide grand jury indicted a Westfield man and his business partner on Nov. 10 on charges of running an illegal gambling operation at a now-closed Internet cafe in Chicopee.
Steven Sheldon, 48, of Westfield, owner of the cafe, and his business partner, Steven Megliola, 52, of Longmeadow, were indicted on charges of organizing or promoting gambling services and operating an illegal lottery, the attorney general said in a statement. Their business – Cafeno's Cyber Cafe at 76 Main St. in Chicopee – closed in March of last year after it was raided by state police.
Sheldon and Megliola denied the charges at their arraignments in Hampden Superior Court early last month.
Sheldon was also indicted for allowing lotteries in a building and the sale and advertising of lottery tickets. Their corporation, Cafeno's Inc., faces the same charges, the attorney general has said.
Baker said she has investments in her business on the line.
"This is bread and butter for your family," Baker said on Tuesday. "What can you do?"
Baker said she believes her cafe is operating legally.
"The people ... enjoy coming here," she said. "They come for relaxation. It's a family atmosphere."
Thomas Lesser, a lawyer for Sheldon and Cafeno's Inc., said after the Jan. 4 arraignment, "In our opinion Cafeno's was a legal Internet cafe, it is protected by Massachusetts law with regard to Internet cafes, with regard to sweepstakes events. There are any number of cafes which are still operating throughout the commonwealth at this point in time, and we're going to litigate this strenuously. We expect to be found not guilty at the end of the day."
"They were operating in the open, everybody knew that they were operating, the state police were advised that they were operating, at no point during all the months of operation did anyone suggest anything illegal was being done here," Lesser said. "They never received a notice from the attorney general saying, 'Wait a second, stop doing what you're doing, it's illegal.' "
Rep. Sean F. Curran, a Springfield Democrat and member of the Judiciary Committee, said he believed the bill probably has a good chance of passing.
"It's good public policy to ban gambling that isn't regulated by the state," Curran said.
The legislation would ban the cafes by making it a crime to conduct or promote a sweepstakes with an electronic machine. People who violate the law could be fined up to $250,000 per machine or sentenced to as many as 15 years in state prison.
The bill exempts the state lottery and betting on horse races, bingo and charitable gambling events.