Roanoke Rapids will begin looking at Internet sweepstakes cafes from a zoning standpoint, City Manager Paul Sabiston said today.
While it is not a new issue across the state, it is a relatively new one in Roanoke Rapids, with several of the businesses opening in the city since the summer.
The planning board will tackle the matter at its March 18 meeting, which starts at 5:30 p.m.
“We’re going to go through that process,” the city manager said. “We’ve got some drafts.”
Sabiston said matters such as zoning and setback requirements are the only issues the city will study. “We’re not trying to snuff them out. We’re looking at parking and setbacks. They fell in between the areas we do have.”
Most towns and cities did not have recommendations until the cafes start locating in areas throughout the state. “We want to be fair like looking at the ratio of parking for the number of machines being used by the patrons. All we’re doing is trying to be fair.”
State Alcohol Law Enforcement, which normally has jurisdiction over businesses like these cafes, cannot comment on them because of a court injunction which forbids the agency from investigating them or offering an opinion on their legalities, said Assistant Special Agent in Charge Brent Massey.
The order stems from an opinion issued by the State Court of Appeals on a complaint filed by Hest Technologies.
In a successful Wake County court case the company argued it developed a prepaid sweepstakes system which does not simulate games typically played on slot or video poker machines.
The Roanoke-Chowan News-Herald reported this week Ahoskie town officials learned there were no ordinances on the books to regulate such entities. On Tuesday, members of the Ahoskie Town Council unanimously approved a zoning ordinance and business fee schedule for those operating an Internet café.
Most of the town council members said they were unclear of how an Internet café operates. Their questions appeared to be answered by Neil Hoover of High Point, who represents H&L Enterprises, a firm that operates 140 Internet cafes across the state. He added that his company plans to open one in Ahoskie.
Hoover said his business charges 20 cents per minute for computer access. The business also sells office supplies.
There was much discussion over the “sweepstakes” offered by Internet cafes. Hoover explained a sweepstakes, one that offers cash prizes, is used to promote the business. He compared it to similar promotions operated by McDonald’s.
Ahoskie amended the town ordinance where an Internet café can operate.
Adding Internet Sweepstakes and Gaming Cafes to Section 202 of the Ahoskie Zoning Ordinance, the town limited the operation of such businesses to between the hours of 8 a.m. until 2 a.m. Such an establishment must be a minimum of 500 feet away from any building used as a dwelling and 1,000 feet away from any church, synagogue or temple; a public or private daycare center; nonprofit clubs; or any public or private school.
Additionally, these types of business would be prohibited from opening within 1,000 feet of each other. They are also required to provide parking and the windows of such businesses are required to be unobtrusive.
Electronic gaming operations, which includes Internet cafes, cyber cafes and electronic game parlors, are required to pay, as a Privilege License, a minimum of $5,000 per year or $500 per machine, whichever is greater.
