State house passes bill on sweepstakes parlors

March 14, 2013 at 12:02a.m.

COLUMBUS

The Ohio House moved legislation Wednesday that likely would lead to the shuttering of sweepstakes parlors across the state.

But House Bill 7 faces an uncertain future in the Ohio Senate, where comparable law changes stalled last session as GOP members questioned their impact businesses and jobs.

HB 7 passed the House on a vote of 66-29, with bipartisan support and opposition.

The legislation focuses on what have commonly been called Internet cafes, though the businesses are not the typical coffee shops where customers go to read email or browse websites.

Generally, patrons purchase phone cards upon entering, buying a chance to win sweepstakes prizes and using computers that resemble slot machines.

More than 800 of the businesses have registered with the state to date, though a moratorium on new storefront openings is currently in place.

HB 7 would require sweepstakes parlors to register with the attorney general’s office. The storefronts would be banned from offering cash payouts or merchandise-prizes worth more than $10. There would be criminal penalties against those that violate the law.

Additional language would ensure other businesses could continue to offer sweepstakes contests, including the oft-mentioned Monopoly promotion by McDonald’s.

Supporters of the law changes, including Republican Attorney General Mike DeWine, said the legislation is needed to stop unregulated gambling and the potential illicit activities that sometimes come with such establishments.

But parlor owners and others say lawmakers are closing legitimate enter- prises and potentially will cost the state thousands of jobs.

The bill survived an attempt to re-refer it to committee for further consideration — a move its sponsor said was unnecessary.