Online Gaming Business Owner Defends 'Internet Sweepstakes'
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OAKLAND: Two Internet Cafes Agree To Close Temporarily After Illegal Gambling Allegations
Updated on: 2010-10-22 04:01:04
On Thursday, the owner of one store-front internet gambling operation defended the legality of her business and let KTVU inside to see what it was all about.
Outside T's Internet Cafe in Antioch features big signs advertising the possibility of big cash winnings. Inside the establishment's room full of computers on Thursday, many people were playing games that -- to some -- might appear to be illegal computer gambling.
For 25 cents a minute, customers to log on to the computers; for $20 they get 13 minutes. They can surf the internet or use the computer to play one of several games that pay out winnings in cash.
One customer who didn't want to be identified spoke to KTVU.
"I've seen people walk out with $500 to $600," said the man. "In just one sitting, a friend of mine put $20 in it and hit $200 in about five minutes."
But the question remained whether such online game is legal.
Outside T's Internet Cafe owner Patricia Simmons said the games were legal and the their rules follow California laws.
"It's a sweepstakes just like McDonald's monopoly. McDonald's Monopoly is done the same way," said Simmons. "When I go buy my large coke at McDonald's and I rip off my tag. If I win a Big Mac, I walk in and get my Big Mac. Same here."
But instead of burgers, prizes at the business come in payouts of up to $1,000 dollars.
This week, KTVU uncovered similar operations in Oakland attached to bingo parlors. One was at Foothill Square and another at Durant Square, where some customers claimed they had lost thousands of dollars.
The Durant location received a cease and desist order last month from the city. On Thursday, city officials met with the owners and said they're investigating whether the establishments were legal.
"We're going to talk to law enforcement agencies, the District Attorney, the State Attorney General, to find out what the rules are here," said Oakland City Attorney's Office spokesman Alex Katz.
The two Oakland businesses have agreed to shut down for a week while officials investigate. These type of gaming operations have been met with regulations and restrictions in other parts of the country.
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Víctor Lei
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