The state’s attorney general this week announced his support of legislation that could mean the end of the many Internet sweepstakes cafes that have been popping up locally.
Though he wrote an opinion last summer that declared the practice legal, Attorney General Ken Cuccinelli said three bills recently introduced in the General Assembly will clarify Virginia’s gambling laws and if passed could make the practices used by many of these Internet sweepstakes businesses illegal.
The bills would change the state’s definition of illegal gambling to include “the purchase of a product or other thing of value as a condition for an opportunity to receive a benefit through a game of chance.
Internet sweepstakes cafes, of which there are now several in the Richmond region, operate by selling a product, typically Internet time on computer stations, that allows the user to receive points or credits that are then used to play, in many instances, casino-like computer games to potentially win more points redeemable for cash.
BizSense has recently run several stories about the rise of these establishments around region. Read the most recent report here.
“Currently, some local jurisdictions are wrongly led by gambling advocates to believe that if any product, no matter how inconsequential, is offered along with an opportunity to gamble, Virginia’s gambling statute has been legally circumvented,” Cuccinelli’s release stated.
“The bills provide clarification as well as a solid affirmation that this form of gambling has always constituted illegal gambling and is subject to prosecution under existing Virginia law,” he said in the release.
Cuccinelli’s current stance differs however from an official opinion he issued on the matter in July in which he argued that establishments engaged in this business were legal.
“You ask whether prizes offered by a retail provider of internet and computer services are permissible or whether they constitute illegal gambling under the laws of Virginia when entries to win prizes are available to persons who purchase computer time as well as to those who do not,” his July 2010 opinion stated.
“It is my opinion that the element of consideration is missing, and therefore no illegal gambling occurs, when the opportunity to win a prize is offered both with a purchase and without the requirement of a purchase.”
According to the AG’s office, Internet sweepstakes cafes are operating in 14 localities across the state including Richmond, Chesterfield and Petersburg.
The three identical bills were introduced by Sen. Mark Obenshain (R-Harrisonburg), Del. Clay Athey (R-Front Royal), and Del. Glenn Oder (R-Newport News).
In statements included in the AG’s release, Obenshain and Athey made it clear where they stand on the issue.
“These stores are introducing video gambling to Virginia under the guise of operating legal sweepstakes. Everyone sees through the gaming industry’s ruse, and Senate Bill 1195 will make clear that casino gambling is neither welcome nor legal in Virginia,” Obenshain was quoted as saying in Cuccinelli’s press release.
“As the saying goes, ‘What happens in Vegas stays in Vegas.’ We don’t want Las Vegas crime here in Virginia,” said Athey in his statement.
The state’s attorney general this week announced his support of legislation that could mean the end of the many Internet sweepstakes cafes that have been popping up locally.
Though he wrote an opinion last summer that declared the practice legal, Attorney General Ken Cuccinelli said three bills recently introduced in the General Assembly will clarify Virginia’s gambling laws and if passed could make the practices used by many of these Internet sweepstakes businesses illegal.
The bills would change the state’s definition of illegal gambling to include “the purchase of a product or other thing of value as a condition for an opportunity to receive a benefit through a game of chance.
Internet sweepstakes cafes, of which there are now several in the Richmond region, operate by selling a product, typically Internet time on computer stations, that allows the user to receive points or credits that are then used to play, in many instances, casino-like computer games to potentially win more points redeemable for cash.
BizSense has recently run several stories about the rise of these establishments around region. Read the most recent report here.
“Currently, some local jurisdictions are wrongly led by gambling advocates to believe that if any product, no matter how inconsequential, is offered along with an opportunity to gamble, Virginia’s gambling statute has been legally circumvented,” Cuccinelli’s release stated.
“The bills provide clarification as well as a solid affirmation that this form of gambling has always constituted illegal gambling and is subject to prosecution under existing Virginia law,” he said in the release.
Cuccinelli’s current stance differs however from an official opinion he issued on the matter in July in which he argued that establishments engaged in this business were legal.
“You ask whether prizes offered by a retail provider of internet and computer services are permissible or whether they constitute illegal gambling under the laws of Virginia when entries to win prizes are available to persons who purchase computer time as well as to those who do not,” his July 2010 opinion stated.
“It is my opinion that the element of consideration is missing, and therefore no illegal gambling occurs, when the opportunity to win a prize is offered both with a purchase and without the requirement of a purchase.”
According to the AG’s office, Internet sweepstakes cafes are operating in 14 localities across the state including Richmond, Chesterfield and Petersburg.
The three identical bills were introduced by Sen. Mark Obenshain (R-Harrisonburg), Del. Clay Athey (R-Front Royal), and Del. Glenn Oder (R-Newport News).
In statements included in the AG’s release, Obenshain and Athey made it clear where they stand on the issue.
“These stores are introducing video gambling to Virginia under the guise of operating legal sweepstakes. Everyone sees through the gaming industry’s ruse, and Senate Bill 1195 will make clear that casino gambling is neither welcome nor legal in Virginia,” Obenshain was quoted as saying in Cuccinelli’s press release.
“As the saying goes, ‘What happens in Vegas stays in Vegas.’ We don’t want Las Vegas crime here in Virginia,” said Athey in his statement.
Please…….. Someone explain (in English) the difference between this and the lottery. You pay, you take a chance, and you might win. Potato/Potatoe.
Looks like the politicians just don’t want any competition with the lottery. They don’t make anything off of internet gambling, but they make plenty off of lottery gambling.
lol. another way to NOT make any money or bring more jobs to the richmond area. can’t you rent computer time at kinkos and pretty much do whatever you want, including online casinos? and seriously—Vegas Crime??? lol. doesn’t richmond have it’s own brand of murder and mayhem? one of the highest crime rates in the nation…these lawmakers are clowns.
When did Cuccinelli change from saying these internet services were legal to being illegal? Maybe he’s not getting a cut from them so now they have to go!!!!Do you not take a game of chance when you buy a ticket on the horses and if you picked right receive more back than you invested, but I guess that that’s not gambing.
How about letting these Internet Services run their business and find something else to make your laws on?
What about all the jobs these stores have created? With the economy and job search slim to none, more people will be out of work.People really need to think outside of the box and not only in their pockets. People have families and need to feed them. SMH!! Talk about real issues!! Create more job opportunites instead of taking jobs away from people!!!