Goodbye Internet Cafes

[sheclown]

The battle over internet cafes is still on:

Wednesday, May 12, 2010

Councilman Gaffney:

As the political heat is turned up by the owner of Jacksonville’s dog tracks and poker rooms to put Allied Veterans out of business, I think it’s important that we understand exactly what’s going on here.

This isn’t a case of white hats vs. black hats as the lobbyists for the dog tracks and poker rooms want to paint it.  Instead, it’s all about the greed of the dog tracks and poker rooms who want to destroy a legitimate business, put 1,400 people out of work, and cut off a vital financial lifeline for local veterans’ organizations and charities that already struggle to survive.

After visiting Allied Veteran sites, meeting with its customers, and talking with Sheriff John Rutherford, I got involved with and was retained by Allied Veterans last November during a luncheon where Allied Veterans made huge donations to the Jacksonville Wounded Warriors Project, the Florida National Guard, Community Hospice of Northeast Florida, the Jacksonville National Cemetery Committee and others.

These financial gifts were part of what Allied Veterans has been doing in Jacksonville for two years:  providing over $1 million in donations to help veterans, victims of crime, law enforcement, and the needy.

If you want to know about Allied Veterans, don’t ask the owner of the dog tracks and poker rooms or his lobbyists.  Instead, ask the people who benefit from the great works of Allied Veterans such as Florida Fallen Heroes, Jacksonville USO, Florida Fallen Heroes, the Justice Coalition, the Fraternal Order of Police, and food banks throughout Northeast Florida.  Allied Veterans has supported these organizations and many others with hundreds of thousands of dollars in donations.

If you really want to know about Allied Veterans, talk to the hundreds of employees who work at the Allied Veterans Jacksonville sites; people who will lose their jobs and local families who will be devastated if the real gambling interests are successful in killing Allied Veterans.

The public shouldn’t be fooled by what’s really going on here.

There’s a much better way for the City Council to deal with this issue; a solution that’s reasonable and fair, and a solution that’s in the best interest of Jacksonville.  The Council should adopt legislation that will regulate Allied Veterans and other similar operations, as well as impose appropriate taxes or fees that will help fund the city’s devastated budget.

Jake M. Godbold
Former Mayor

The ordinance has passed to committee.

[Doug V]

My little speech to City Council Tuesday:

Hello.  My name is Doug Vanderlaan.  My address is 1453 Market Street North in Springfield.  I am the Chair of the Urban Core CPAC.

Our CPAC is made up of residents and representatives of neighborhood groups from Durkeeville, Myrtle Avenue, Springfield, the Eastside and Downtown.

Last summer I became aware of these so-called “internet cafes”.  I did my research my research and learned that these are actually small video gambling casinos.  I learned that these casinos try to tiptoe around state laws that regulate gambling, and thereby operated in a gray area that made it problematic for JSO to shut them down.

I read the book by Professor of Economics, Earl Grinols, from Baylor University, “Gambling in America: Costs and Benefits”.  In his book Professor Grinols discussed the connection between casino gambling and gambling addiction, crime, suicide, poverty, bankruptcy and corruption.  These are the effects of gambling.  They’ve been studied.  They are real.

Communities across the country sometimes chose to tolerate these known social problems with the expectation that casinos will generate revenue for schools and roads, and that it they can be regulated to keep them clean and honest.

Now along come “internet cafes”.  All the social and economic downside of casinos.  But are they honest?  We don’t know â€" they aren’t regulated.  Do they contribute to our schools and roads? No, they don’t.
I understand that the games available at these “internet cafes” are essentially the same as those available at home of anyone who has a PC and an internet connection.  So who forms the target market for these businesses?  It seems clear to me that the answer is, low income folks, like many residents of the Urban Core, who can’t afford these luxuries.  Their prey is the poor.

I brought these findings to the Urban Core CPAC.  In September we passed the following motion:

The Urban Core CPAC urges the Jacksonville City Council, Mayor, JSO and the State Attorney’s office to work together to establish and enforce regulations on the small unregulated casinos know as “internet cafes”. Considering the known harmful social effects of gambling, and the fact that Northeast Florida already offers dog racing and a state lottery, we advise the Jacksonville City Council to enact an ordinance to close the “internet cafes”.
So thank you Council Members Hyde, Redman, Holt, Bishop, Yarborough, Davis, Shad and Corrigan for taking the lead in introducing Ordinance 2010-326. Tolerating “internet cafes” is bad public policy. Jacksonville’s neighborhoods need this ordinance.

[urbanlibertarian]

Another view from John Stossel:

Leave the Gamblers Alone
Why can't adults be left to do what we want to do?

John Stossel | May 13, 2010

"Some of us like to gamble. Americans bet a hundred million dollars every day, and that's just at legal places like Las Vegas and Indian reservations. Much more is bet illegally.

So authorities crack down. They raided a VFW branch that ran a poker game for charity. They ban lotteries, political futures markets, and sports betting. They raid truck stops to confiscate video poker machines. Why?

On my Fox Business News show tonight, Chad Hills of Focus on the Family says: "These machines have been shown to be extremely addictive. That's a huge concern, primarily for kids, because it's hard to keep them away."

Well, I certainly agree kids shouldn't gamble, and some people do wreck their lives. But why can't adults be left to do what we want to do?"

Whole article here: http://reason.com/archives/2010/05/13/leave-the-gamblers-alone

[Ernest Street]

Yep...this will siphon money off potential "State Lottery Players" (the scratch off Lottery loiterers)...The alarms are going off in Tallahassee.

[sheclown]

I am not a fan of gambling and was sorry when state lotteries started popping up all around the country.  

That being said, it is ridiculous to oppose internet cafes on moral grounds because we condone and promote this from the state.

More appropriately, internet cafes need to be regulated and taxed accordingly, understanding that we opened this door with government running their own versions of "internet cafes."

After all, if the state can make money on gambling, why can't the city do the same?

(And btw  Doug, I appreciate you so much and the work that you do for the community.  You are a tireless advocate for downtown, Springfield and Durkeville.  You represent with integrity and courage -- what a rare quality!)

[Bativac]

...it is ridiculous to oppose internet cafes on moral grounds because we condone and promote this from the state.

Have to agree with you on this. I think the so-called "internet cafes" are pretty seedy-looking joints and I don't want to see them on every corner... but at the same time, we have a state lottery, we allow the dog track - how can the state or the city oppose these places on any grounds other than "we aren't getting a cut"?

And unlike the dog track, at least the internet cafes don't involve participating in the large-scale mistreatment of animals.

[sheclown]

Have to agree with you on this. I think the so-called "internet cafes" are pretty seedy-looking joints and I don't want to see them on every corner... but at the same time, we have a state lottery, we allow the dog track - how can the state or the city oppose these places on any grounds other than "we aren't getting a cut"?

And unlike the dog track, at least the internet cafes don't involve participating in the large-scale mistreatment of animals.

So, the solution is...take a cut.  Make the internet cafes less seedy.

[sheclown]

COJ internet cafe tax. 

Maybe we could keep the libraries open.

[fieldafm]

The whole 'charity' aspect is such a shameful distraction in the debate.  Allied is not the VFW.  It is not the American Legion.  It's not any number of Title 36 U.S.C. entities that honor our country and our honorable veterans.  It is a money-making business that as an ancillery matter of its business operations also happens to donate a smitten(~5%) of their profits to various veteran's organizations.  I could name about 50 companies in Jacksonville off the top of my head that donate a significantly more amount of money to various charities in town than Allied does.  It's a distraction to spin people away from what they really are... for-profit gambling insitutions. 
Big deal if they give some of their money away to someone else.  I can give 5% of my crack dealings to charity.  But in the end, Im still selling crack.

The Allied coporate entity(who does not pay federal taxes as a 501C not-for-profit corporation) owns 6 luxury cars that the Allied 'Commander' can choose to drive around and spend his half million dollar compensation.  I can tell you, being represented by Kelly Madden is not cheap.  That sure does sound like charity doesn't it?

The bottom line is, these establishments need to abide by the rules and constructs set forth by the FL Dept of Agriculture.  Believe me, when they are treated like legitimate gambling establishments they will dwindle in numbers now that they actually have to play the game like everyone else legitamately does(regular inspections of odds making, taxes, etc).

[copperfiend]

I would never set foot in one of those crapholes. The people running these joints are the lowest of the low.

[sheclown]

The bottom line is, these establishments need to abide by the rules and constructs set forth by the FL Dept of Agriculture.  Believe me, when they are treated like legitimate gambling establishments they will dwindle in numbers now that they actually have to play the game like everyone else legitamately does(regular inspections of odds making, taxes, etc).

Seems simple to me.

[ONESTOP THRIFTSHOP]

I have not been in one of these places.  But I do agree that if the adults wants to spend there money that way then let them.

If you think about it: playing the Lottery, cash 3, powerball and buying the scratch off tickets falls under gambling too.

Adults choose to spend there money this way. Let them be and let them have fun at doing it.

Just to let you know you can by slot machines and set them up in your home for entertainment and they don't say nothing about that.  So what is the difference for having a slot machine in a business location it is considered  entertainment to the adults that play them.  Especially if they have no other entertainment to go too.

[Coolyfett]

Competent adults should be free to voluntarily gamble with other adults and not be treated like children by the government.

I kinda agree with this. Gambling is just like Cigarettes, Alcohol & Tattoos....If people want to do it let them.

[sheclown]

anything new on internet cafes?

[fieldafm]

http://jacksonville.com/news/crime/2010-09-07/story/jacksonville-children%E2%80%99s-charity-was-front-gaming-proceeds-secret-service

Jacksonville children’s charity was front for gaming proceeds, Secret Service says

By Paul Pinkham
The couple who ran the Compass Foundation described it as a Jacksonville children’s charity.


But federal agents say the overwhelming majority of the tax-exempt foundation’s funds went to a company that owned Internet sweepstakes machines at the couple’s Beach Boulevard pool hall.


Deposits to the foundation’s accounts, which came from those machines, were structured in amounts less than $10,000 to avoid detection by authorities, according to the U.S. Secret Service.


No criminal charges have been filed, but agents obtained a warrant to seize $14,700 remaining in Compass Foundation’s credit union account. Now federal prosecutors have asked a judge to permanently forfeit the amount to the government.


The foundation has no connection to BBVA Compass bank. Instead it was run by Kevin and Sharon Allen,  owners of Six Pockets pool hall.


They couldn’t be located for comment Tuesday, and the pool hall has closed. But Kevin Allen told a Secret Service agent in June that Compass Foundation was founded to provide financial assistance to disadvantaged youth in the Jacksonville area.


“He stated they were finding it difficult to obtain referrals of disadvantaged youth to provide financial assistance,” Special Agent Colin Upson  wrote in a declaration filed in court.


In fact, Upson’s declaration said, during the foundation’s year of existence he was able to find just three checks totaling about $3,000 for children’s charities. The checks were for Toys for Tots, the Daniel Foundation  and the Alex Ross Fund, named for a Jacksonville teenager injured after being shot in the head.


In contrast, the declaration says, other expenditures from the account totaled $476,000 and were paid to four companies that supply vending and Internet sweepstakes machines.


Quick Vending Service got the lion’s share of that amount â€" about $427,000 â€" and Upson said the foundation wrote checks several times a month to the company.


His declaration says the owner of one of the companies told him Compass Foundation was formed in order to link the use of Internet sweepstakes machines with a charity.


The owner said a Quick Vending employee, identified as Shorty, would collect cash from the company’s machines and deposit the entire amount in the foundation’s account. Compass would then issue a check back to Quick Vending for the entire amount minus 3 percent, which was to be used for operating costs and charitable causes.


The owner of another vending company told Upson that Gator Coin II also had an agreement involving proceeds collected from its machines at Pot of Gold on Lane Avenue. He said 50 percent would go to Pot of Gold and the rest would be deposited by Quick Vending’s representative into Compass Foundation’s account.


Upson wrote that the witness told him the foundation would then write a check to Gator Coin for 90 percent and retain the rest as a charitable deduction. The witness said Gator Coin has requested but not received a list of charitable contributions made by the foundation.


“All cash deposits made to the Compass Foundation were proceeds derived from the use of the Internet sweepstakes machines,” Upson wrote.


He said they were structured in amounts less than $10,000 so the credit union would not file currency transaction reports, a violation of federal laws designed to help authorities uncover money laundering and currency violations. Evidence of structuring includes deposits of just under $10,000 on successive days, Upson said.


Allen declined to discuss with Upson how collections and deposits were made for the foundation or what local business he partnered with. He denied purposely splitting the deposits over successive days.