10/4/2011 Internet Café Internet Cafés in in Florida Florida � Presented by: David G. Shields Assistant County Attorney Seminole County Attorney’s Office 1101 East First St. Sanford, FL 32771 (407) 665-7254 dshields@seminolecountyfl.gov � Part I Part I Internet Cafés Internet Cafés � 1
10/4/2011 What Are Internet Cafés? What Are Internet Cafés? Facilities Facilities which which ostensibly ostensibly offer offer public public access access to to the the Internet, Internet, or or in in some some cases cases telephone telephone access access cards, cards, using using claimed claimed “sweepstakes” to “sweepstakes” to promote promote customer customer use use of of the the facility facility. The economic The economic reality reality appears appears to to be be that that the the claimed claimed “sweepstakes” “sweepstakes” are are the the real real business, business, not not the the Internet Internet or telephone or telephone access access. . � Problems with Internet Cafés Problems with Internet Cafés They generally They generally operate operate exclusively exclusively in in cash cash and and at at all all hours hours of of the the night, night, making making them them prime prime targets targets for for armed armed robbery robbery. They generally They generally operate operate 24 24/7, making making them them nuisances, nuisances, particularly particularly where where located located next next to to residential residential neighborhoods, neighborhoods, and and also also to to adjacent adjacent businesses businesses. . � Problems with Internet Cafés Problems with Internet Cafés They have They have the the same same secondary secondary effects effects as as conventional conventional gambling, gambling, regardless regardless of of whether whether their their activities activities technically technically constitute gambling constitute gambling under under Florida Florida law law. They They are are not not regulated regulated by by the the Florida Florida Division of Division of Pari Pari-Mutuel Mutuel Wagering Wagering. � 2
10/4/2011 Problems with Internet Cafés Problems with Internet Cafés They They generally generally resist resist providing providing detailed detailed information information to to evaluate evaluate their their activities activities. . At best, At best, they they operate operate in in a legal legal grey grey area area and more and more than than likely likely they they violate violate existing existing Florida Florida law law. � Problems with Internet Cafés Problems with Internet Cafés Instead Instead of of watching watching out out for for compulsive compulsive gamblers, at gamblers, at least least some some of of them them have have a practice practice of of having having their their customers customers sign sign a statement statement acknowledging acknowledging they they are are not not gambling gambling. � Part II Part II Seminole County Ordinance Seminole County Ordinance 2011 2011-1 � 3
10/4/2011 Seminole County Ordinance Seminole County Ordinance On On January January 11 11, 2011 2011, Seminole Seminole County County adopted adopted Ordinance Ordinance 2011 2011-1, banning banning “simulated “simulated gambling gambling devices devices. .” The The Ordinance Ordinance definition definition of of “simulated “simulated gambling gambling device” device” is is extended extended and and detailed detailed in in order order to to target target precisely precisely the the devices devices used used in in the the prohibited prohibited activity activity. �� Exemptions from the Exemptions from the Ordinance Ordinance Devices Devices for for personal, personal, recreational recreational and and non non-commercial commercial use use. Devices Devices or or activity activity permitted permitted by by the the Florida Florida Statutes Statutes. . Florida Florida Statutes Statutes control control over over the the Ordinance Ordinance where where there there is is conflict conflict. �� Part III Part III The Federal Litigation The Federal Litigation �� 4
10/4/2011 The Federal Litigation The Federal Litigation On On February February 1, 2011 2011, a federal federal lawsuit lawsuit was was filed filed against against Seminole Seminole County County seeking seeking to to enjoin enjoin enforcement enforcement of of the the Ordinance Ordinance. The The plaintiffs plaintiffs were were able able to to obtain obtain a temporary temporary restraining restraining order order when when they they filed filed the the lawsuit lawsuit. �� The Federal Litigation The Federal Litigation The plaintiffs’ The plaintiffs’ principal principal theory theory seems seems to to be be that that banning banning simulated simulated gambling devices gambling devices violates violates the the First First Amendment Amendment right right of of free free speech speech and and the Ordinance the Ordinance is is overbroad overbroad. �� The Federal Litigation The Federal Litigation On On May May 6, 2011 2011, the the Federal Federal District District Court entered Court entered an an Order Order denying denying the the plaintiffs’ plaintiffs’ motion motion for for a preliminary preliminary injunction. injunction �� 5
10/4/2011 The Court’s May 6, 2011 Order The Court’s May 6, 2011 Order “The “The Temporary Temporary Restraining Restraining Order Order issued issued on on February February 1 1, 2011 2011 concluded concluded that that at at least least some some video games video games constitute constitute protected protected speech speech and and that that Plaintiffs Plaintiffs therefore therefore had had made made a showing showing that that they they were were entitled entitled to to a temporary temporary restraining restraining order. order �� The Court’s May 6, 2011 Order The Court’s May 6, 2011 Order “ Although Although the the Order Order correctly correctly determined determined that that video video games games can can constitute constitute protected protected speech, speech, a thorough thorough examination examination of of the the parties’ parties’ arguments arguments and and of of the the Ordinance Ordinance yields yields the conclusion the conclusion that that the the Ordinance Ordinance does does not not prohibit prohibit that that protected protected speech speech. . Instead, Instead, the the Ordinance Ordinance prohibits prohibits only only conduct conduct. .” May May 6 6, , 2011 2011 Order Order at at 6 6. �� The Federal Litigation The Federal Litigation On On May May 12 12, 2011 2011, the the plaintiffs plaintiffs filed filed an an interlocutory interlocutory appeal appeal with with the the Eleventh Eleventh Circuit Circuit Court Court of of Appeals Appeals. . The The plaintiffs plaintiffs also also filed filed a motion motion to to stay stay proceedings proceedings below below pending pending appeal appeal and and to to reimpose reimpose the the temporary temporary restraining restraining order order against the against the County County pending pending appeal appeal. �� 6
10/4/2011 The Federal Litigation The Federal Litigation On On September September 8, 2011 2011, both both of of the the plaintiffs’ plaintiffs’ motions motions were were denied denied. The The case case continues continues in in the the trial trial court court and and on appeal on appeal. �� Part IV Part IV Are Internet Are Internet Cafés Cafés Already Already Illegal Illegal in in Florida? Florida? �� The The Florida Florida Constitution Constitution Prohibits Prohibits Lotteries Lotteries Subject Subject to to Only Only a Few Few Exceptions Exceptions �� 7
10/4/2011 Article X, Section 7 of the 1968 Article X, Section 7 of the 1968 Florida Constitution provides: Florida Constitution provides: Lotteries Lotteries - Lotteries, other than the Lotteries, other than the types of pari-mutuel pools authorized types of pari mutuel pools authorized by law as of the effective date of this by law as of the effective date of this constitution, are hereby prohibited in constitution, are hereby prohibited in this state. this state. �� The Exceptions: The Exceptions: Pari-mutuel Pari mutuel pools pools that that existed existed in in 1968: horse 1968 horse racing, racing, dog dog racing, racing, jai jai- alai, alai, and and bingo bingo. The state The state lottery lottery under under Article Article X, X, Section Section 15 15 of of the the Florida Florida Constitution Constitution. �� The Exceptions (Cont’) The Exceptions (Cont’) Slot Slot machines machines at at pari pari-mutuel mutuel facilities facilities only only in in Miami Miami-Dade Dade and and Broward Broward County under County under Article Article X, X, Section Section 23 23 of of the Florida the Florida Constitution Constitution. �� 8
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