Town posts moratorium on Internet gaming here

The Sparta Town Council opted to have a public hearing to discuss the possibility of the establishment of a moratorium for businesses under the category of Internet Sweepstakes Cafes. Councilman Robert Andrews was not at the meeting.

Town Manager Bryan Edwards told the council he received an inquiry about the possibility of a business license for a business under the category of Internet sweepstakes café, which are sometimes referred to as cyber cafes. At present, there is no zoning category for such a business in the town's zoning book.

"I'm finding that to be very typical across the state…it's relatively new, it's a business that has been around for a few years but within the past eight or nine months it seems to be proliferating around the state. Also, that business category is not listed in our…licensing book that we use…"

Because there is no category that "adequately" describes the business, Edwards has begun to do research on the topic.

Edwards read, "Proponents of the business and the gaming industry compare the process to no more than playing the Monopoly game sweepstakes at McDonald's; while opponents contend that this activity skirts N.C. gambling laws. I do not know enough about it at this time to offer an informed recommendation, so I think it is appropriate that the town council should have some time, and the opportunity for some public input and public comment about the Internet sweepstakes café business."

Edwards then touched on the spectrum about the activity.

First, the state law does not prohibit sweepstakes gaming parlors.

Edwards said, "Unlike the typical Internet café where most users check e-mail, do research or update their Facebook pages, visitors to the sweepstake gaming parlors spend most of their time playing games that they hope will win prizes."

Referring to the comparison of the gaming to a fast food restaurant game, Edwards pointed out, "There is a difference of opinion about that. North Carolina School of Government has issued a couple of documents that talk about the issue…"