Local leaders extend moratoriums blocking new Internet cafes

MIAMISBURG -- Miamisburg City Council is expected to extend a 90-day temporary moratorium against the opening of Internet cafes inthe city while officials develop regulations to control thebusinesses.

The city in December passed a temporary moratorium against theissuance of permits for Internet cafes and is expected to pass a 120-day extension during tonight's council meeting, said Chris Fine,Miamis-burg director of planning and development. The currentmoratorium expires Thursday.

"Right now, they fall under our regulations for video arcades,"Fine said, noting that legislation specifically addressing Internetcafes does not exist.

Internet cafes are small, online gaming businesses alreadyoperating in Ohio. Authorities say the online games of skill playedat the establishments resemble slot machines and are sanctionedthrough a loophole in Ohio gambling laws.

To play, customers purchase prepaid cards, then collect winningspreset by the computer that generated the prepaid card.

"It's a new use, one we've never had before," Fine said.

Without updated regulations, Fine said the city has little say inapplying restrictions on Internet cafes.

"They can be grandfathered in," he said.

During the extension of the temporary moratorium, Fine said thecity can develop new regulations that place tighter restrictions onInternet cafes, such as where they can be located, includingproximity to schools, as well as hours of operation, licensing andparking requirements.

Fine said the city likely will allocate the cafes to within thecity's highway service district, which runs along the Ohio 741corridor and part of Ohio 725, near the Dayton Mall.

Buying time

Miamisburg is one of several communities buying time to iron outnew rules through extended moratoriums.

In Springboro, officials adopted a 60-day moratorium on Feb. 3,and Trot-wood City Council passed a 180-day moratorium on Feb. 7.

Springboro City Manager Christine Thompson said draft regulationson Internet cafes are in final review and City Council is expectedto approve an extension before it expires on April 3.

West Carrollton and Springfield passed temporary moratoriums onJan. 11 -- 90-day and six months, respectively -- and Centervillepassed a six-month moratorium Jan. 24.

West Carrollton City Manager Brad Townsend said he expects cityleaders to extend by another 90 days the city's moratorium, set toexpire April 11.

"Our law director is monitoring various lawsuits on the topic andawaiting guidance from the attorney general," Townsend said. "Inaddition, the staff has been researching some new city regulationsfor adoption if the courts and/or state do not deal with the issue."

In Butler County, officials of both West Chester and Libertytownships passed six-month moratoriums in early February.

State guidelines

Prior to taking office as Ohio attorney general, Mike DeWine inJanuary said he was aware of the growing number of Internet cafes inthe state and shared the same concerns as others regarding theirregulation.

DeWine spokeswoman Lisa Peterson Hackley said the attorneygeneral is planning soon to release regulation guidelines addressing"parts of Ohio's gambling law."

"We're working on that actively," she said.

Contact this reporter at (937) 225-9338 or kmcallister@DaytonDailyNews.com.