These business establishments are popping up in every
Michigan community. They offer
sweepstake games. A Google search turns
up 2,000,000 results for “internet café Michigan”. Customers purchase internet time to play
games and the shop pays cash for the “winnings”.
Attorney General Bill Schuette, has opined that these cafes
are gaming.
Flint Business Center is an internet cafe that sells
internet access and long distance phone cards.
With each purchase, the customer receives free sweepstakes entries to
play casino-style computer games for cash prizes. Schuette has sent cease and desist letters to
a dozen of these internet sweepstakes cafes.
After receiving the cease and desist order, Flint Business
Center sought a preliminary injunction allowing them to stay in operation. The cafe argued that the games aren’t illegal
gambling activities, but more similar to a McDonald’s Monopoly
sweepstakes.
The Genesee County Circuit Court didn’t buy it and denied the
cafe’s request. This may be the first
state court decision on this issue.
The Flint Business Center has shut its doors rather than
face potential prosecution.
If you have questions on legal issues, contact Mark Mandell
or Matt Worley at (248) 380-9976.
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