PZ 04/13/2011 Minutes - Laserfiche WebLink

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i I r Chief Planner 95 Triplet Lake Drive, Casselberry, Florida 32707 • Telephone (407) 262-7700, Ext. 1108 Fax (407) 262-7763 • Email: ssmith(c~casselberry.orq T0: Planning and Zoning Commission FROM: Sandra J. Smith, AICP, Chief Planner DATE: April 13, 2011 RE: LPA 11-10: Amend the City Code to provide criteria for Simulated Gambling Devices The City Commission placed a 180-day moratorium on the issuance of permits and licenses for the operation of certain businesses within the City of Casselberry related to game rooms, arcades, internet cafes, sweepstakes redemption centers, and similar indoor entertainment and amusement activities in May of 2010. The moratorium was extended several times and will expire on May 4, 2011. This moratorium was based on the proliferation of "Internet Cafe" type uses that have lottery games and other vehicles for gambling that skate a fine line between what is legal and what is illegal. Internet Cafes provide access to a gambling website based on the purchase of internet or telephone time and the provision of a "free" sweepstakes ticket to the patron as a bonus for buying the computer or telephone time. The outcome (win or loss) of the sweepstakes ticket requires access to a dedicated site maintained by the "Internet Cafe". On January 10~, Seminole County adopted legislation prohibiting the use of simulated gambling devices. The effect is to eliminate the use of the machines that display casino type games that result in winning money or losing the money you paid to access the games. The business use may stay in operation offering the use of computers for actual Internet use. The need for this prohibition was based on an analysis by the Florida Council on Compulsive Gambling, an Economic Impact Statement developed by the Seminole County Fiscal Services Division, and complaints from law enforcement. The FCCG report finds that these "gaming" centers are attracting. mostly low income women who are the least able to sustain a loss of income and the negative effects are similar to those caused by "gambling" casinos. The Seminole County Impact Statement finds that "lawful gambling operations are required by law to have safeguards to deal with problem gamblers while the establishments that would be affected by the prohibitions contained within the (Seminole County) ordinance do not." A "simulated gambling device" is defined by Seminole County as "any device that when connected with an object is available to play or operate a computer simulation of any game, and which may deliver or entitle the person or persons playing or operating the device to a payoff." That legislation was immediately challenged by Allied Veterans of the World, Inc. and a Temporary Restraining Order was handed down by the U.S. District Court for the Middle District of Florida (U.S. District Case No. 6;11-cv-155-Or1-28DAB). The 2011 Florida Legislature is now attempting to address the issue House Bill 217 and the companion Senate Bill 576. This legislation would prohibit establishments such as the "Internet Cafes" from using computers that provide casino games by creating the "Electronic Machines and Devices for Sweepstakes Prohibited Act." The legislation is proceeding "favorably" through committee review. It is difficult to predict the outcome of the challenge to the Seminole County prohibition or the possible implementation of legislation by the State. It is; therefore, necessary for the City to take action to provide regulations for such uses in the City. Legislation initially proposed by staff dealt with the location of the business use - be it an internet cafe, sweepstake redemption center, or similar use. The legislation proposed by staff at this time is similar to that the State is proposing in HB 217 and SB 576. This legislation deals with the type of machine that is being used by a business.