Colorado's Attorney General Declares Sweepstakes Cafes Illegal
Swipe cards in Colorado cafés are considered illegal gambling, as per the state's Attorney General's office. The opinion signifies that these establishments are not sweepstakes operations, but they are gambling operations. They would need to be legalized by state voters via constitutional amendments.
Sweepstakes cafés are effectively gaming hubs and require legal approval through constitutional amendments to become legal. According to industry insiders, there are around forty of these venues functioning in the state. Former Pueblo County Sheriff Dan Corsentino, a consultant for Cyber GT Systems (owner of seven such businesses), believes they aren't gambling spots. Instead, he argues that these cafés just provide customers with alternative ways to enjoy gaming and win prizes, available through various means outside of these cafés.
Despite this stance, sweepstakes cafés have failed legal challenges in multiple states like Florida, California, and Mississippi. Corsentino suggests a different approach and a more reasonable solution, where regulation is preferred over an outright ban.
He proposes that cafés could conform to regulations by enhancing the retail element of their business model. They can sell more merchandise, resembling traditional retail stores, and remain in areas free from casino gambling.
However, legislators find this improbable. State Rep. Polly Lawrence (R-Roxborough Park), a lawmaker who supported an earlier attempt to ban these cafés, states that AG's verdict is substantial. She believes that many cafés primarily focus on the poor and the elderly demographic and lack the established regulations and oversight observed in the state's casinos.
The ruling from the Attorney General's office may not immediately shut down or raid these venues. As of now, local law enforcement officials are contemplating their actions. Some communities have already begun taking steps to limit cafés. For instance, the Lakewood City Council introduced a one-year ban on licensing these establishments, watching how this industry will be regulated statewide. The sweeping cafés have fairly solely stirred legal issues in various states, where they're inevitably challenged. The method they employ hinges on consumers exchanging products like phone cards or internet time for sweepstakes entries, leading to cash rewards. Nonetheless, officials contend that customers mostly go to these venues for gambling, with no actual intent of using purchased products.
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