Dallas Council To Mull Moratorium on ‘Sweepstakes Cafes’

Members of the tonight will consider a temporary moratorium on the establishment or expansion of any “internet sweepstakes cafés” or “phone card sweepstakes cafés.”

The proposed ordinance to establish the moratorium, as provided by Lori Morris of the city of Dallas, states that “there is a growing problem in communities throughout the country with businesses which are often classified as ‘internet sweepstakes cafés’ or ‘phone card sweepstakes cafés’, whereby businesses circumvent state gaming laws by using advances in electronic, mechanical, and computer technology to allow customers to gamble using veiled schemes.”

(Attached to this article, in PDF form, are the draft of the ordinance and the full meeting agenda.)

The ordinance also says that the businesses oftentimes require additional parking, operate for extended hours or cause increased traffic at time periods that do not necessarily experience high volumes of pedestrian or vehicle traffic. Such issues, the ordinance says, could be “potentially injurious to health, safety and welfare” of city residents, and officials are seeking the moratorium to study the potential impact of such businesses.

“The devices used in ‘internet sweepstakes cafés’ or ‘phone card sweepstakes cafés’ or any variation thereof which shall fall under this moratorium shall be labeled ‘Sweepstakes Devices’ and shall be defined, but not limited to, computers, mechanical devices or electronic devices which may be operated by the public generally for gaming purposes using no skill and include anything that uses energy and is capable of displaying information on a screen or other mechanism that can be viewed by a person in order to enter a sweepstakes, or like contest, and engage in any activity or process associated with the sweepstakes, or like contest, including viewing information which would notify the person that the person is eligible, will receive, or is entitled to receive a prize. Machines designated for use by the State Lottery Commission and machines falling under the definition of ‘bona fide coin operated amusement machines’ under state law shall not fall under the definition of ‘Sweepstakes Devices,’” the ordinance says.

Councilmen also will consider amendments to ordinances dealing with junk vehicles, alcoholic beverage establishments, animals, business licensing and health and sanitation. The amendments, according to Morris, will add language to give the newly created Marshal’s Department the power to enforce the ordinances.

In other business, the council will consider:

• An ordinance to annex and zone a parcel of land purchased by the city from the estate of Scott Smith. The measure would amend the property’s zoning from county R-1 to city R-1, which would allow for “municipal, county, state, federal and other uses, including parks and playgrounds,” according to the meeting agenda. The property, which consists of two tracts, is adjacent to Sara Babb Park.

• An application from Southern Taxi LLC to create a taxi service.

The council will hold its work session at 5 p.m. and business session at 7. A public hearing on the annexation and zoning request will commence at 7 before the start of the business session.