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HomeMy WebLinkAboutOrd 01-14 Internet Sweepstakes Cafes ORDINANCE NO. 1 - 14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * ADDING CHAPTER 5.50 TO THE DUBLIN MUNICIPAL CODE RELATING TO INTERNET SWEEPSTAKES CAFES WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City may make and enforce within its limits all local police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, the City has received inquiries regarding the establishment, and operation of an internet sweepstakes cafe (as defined herein) within the City; and WHEREAS, internet sweepstakes cafes are operations that rent time on computer terminals and in conjunction therewith provide free entries into sweepstakes, with prizes typically, but not always, distributed based on the results of customers' operation of games on the computer terminals; and WHEREAS, operators of internet sweepstakes cafes assert that their operations do not violate state gambling laws because customers pay for the right to use computer terminals and not for the privilege of entering the sweepstakes; and WHEREAS, even if the operations of internet sweepstakes cafes do not constitute illegal gambling under state law, customers of internet sweepstakes cafes experience an atmosphere that is similar to the experience that is offered on slot machines and other electronic gambling devices legally operated in the State of Nevada, and the operations therefore have the same potential to generate deleterious effects that legal gambling operations do; and WHEREAS, it is within the City's police power authority to regulate gambling activities that are not regulated by state law; and WHEREAS, the City Council finds that internet sweepstakes cafes, like legal gambling operations, must be appropriately regulated to ensure both that the internet sweepstakes cafes do not cross the line between a legal sweepstakes program and an illegal lottery or gambling establishment and that the public can have confidence and trust in the credibility and integrity of the operations; and WHEREAS, the City Council finds that the development, establishment and operation of internet sweepstakes cafes without adequate regulation has the potential to result in associated crime such as check and credit card fraud, loan sharking, robbery, and money laundering; and WHEREAS, City Council further finds that the City at present does not have the financial and technical resources to appropriately regulate internet sweepstakes cafes; and WHEREAS, the City Council believes, for all the foregoing reasons, that it is in the public interest to prohibit the operation internet sweepstakes cafes in the City. Ord.No 1-14,Adopted 1/21/14,Item 4.2 Page 1 of 3 NOW, THEREFORE, the City Council of the City of Dublin does hereby ordain as follows: Section 1. Chapter 5.50 is hereby added to the Dublin Municipal Code to read as follows: Chapter 5.50 INTERNET SWEEPSTAKES CAFES Sections: 5.50.010 Definitions. 5.50.020 Prohibitions. 5.50.030 Violations. 5.50.040 Exceptions. 5.50.010 Definitions A. "Computerized sweepstakes device" shall mean any computer, machine, game or apparatus which upon insertion of a coin, token, access number, magnetic card or similar object, or upon payment of anything of value, may be operated by the public generally for use in a contest of skill, entertainment, amusement or chance whether or not registering a score, and which provides the user with a chance to win anything of value or any cash payout or anything that could be redeemed, directly or indirectly for any cash payout and which is not regulated as gambling, a lottery or as a gaming device under state or local law. B. "Internet sweepstakes cafe" shall mean any premises upon which a computerized sweepstakes device is located for the use or entertainment of the public, whether or not such premises has other business purposes of any nature whatsoever. 5.50.020 Prohibitions. A. Internet sweepstakes cafes are prohibited within the City. B. It is unlawful for any person to establish, manage or otherwise engage in the business of operating an internet sweepstakes cafe. C. It is unlawful for any person, either as owner, lessee, agent, employee, mortgagor, or otherwise, to knowingly permit any room, building or premises, or any furniture, fixtures, equipment or other article or anything of value to be used in the City for or in connection with any internet sweepstakes cafe. D. The operation, conduct or maintenance of an internet sweepstakes cafe is a public nuisance. 5.50.030 Violations. Any person violating, or causing or permitting to be violated, any of the provisions of this Chapter shall be deemed guilty of a misdemeanor. Ord.No 1-14,Adopted 1/21/14,Item 4.2 Page 2 of 3 5.50.040 Exceptions. Nothing in this chapter includes or applies to any act which is made a public offense by any section of the California Penal Code or by any other law of the state of California. Section 2. This Ordinance shall supersede any previously adopted urgency ordinance adding Chapter 5.50 to the Dublin Municipal Code. Section 3. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances. Section 4. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following its adoption. Section 5. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED this 21st day of January, 2014, by the following vote: AYES: Councilmembers Biddle, Gupta, Hart, Haubert, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None Mayor ATTEST: , )/17f7 City Clerk Ord.No 1-14,Adopted 1/21/14,Item 4.2 Page 3 of 3