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Florida legislators have passed a bill to ban Internet cafes and Governor Rick Scott said he would sign the measure into law. He has until April 12 to ink the bill. The Florida Senate voted 36-4 on Thursday in favor of the ban that has already been approved by the Florida House of Representatives.

Once the law is signed, two Internet cafes in Live Oak will be forced to close its doors for good.

“This is very bad,” said Vipul Patel, owner of Gambo’s Internet Cafe located in the Walmart shopping plaza. 
Patel said his business sees about 300 customers per day and he expects a significant financial impact when he has to close the doors.  

“We have four employees. When we’re forced to close, they will lose their job. When we hand the keys over to the building owner, he’s left with an empty building and no one paying rent,” said Patel. “This is not good for anyone.”

Patel said the effects of this ban will not only be felt locally, but statewide.

“Across the state, about 20,000 people are going to be out of a job,” said Patel. “The software people have technicians. They’re going to be out of a job as well.”

The other Internet Cafe is Internet Royale Cafe.

One Live Oak Internet cafe was shut down as a result of a raid last month that led to the resignation of Lt. Governor Jennifer Carroll.

On March 13, Live Oak Internet Services, LLC, located at 1525 Ohio Ave. North, Live Oak, was a part of a raid of Internet cafes associated with Allied Veterans of the World. The six-year long investigation has resulted in the charging of 57 individuals involved in the $300 million conspiracy. 
The Live Oak center was named in a lengthy search warrant that was issued in Oklahoma and listed 50 others including one in Lake City which was also shut down the same day.

The Florida Department of Law Enforcement said Allied Veterans of the World was led by four co-conspirators: Johnny Duncan, 62, of Boiling Springs, S.C.; Jerry Bass, 62, of Jacksonville; Chase Burns, 37, of Fort Cobb, Okla. and Kelly Mathis, 49, also of Jacksonville. Duncan serves as the former national commander of the organization, Bass is the current commander, and Mathis is the organization’s attorney. 
According to the Florida Department of State Division of Corporations, Live Oak Internet Services filed as a Florida limited liability company on Feb. 25, 2010. The registered agent for the company is Kelly Mathis, Esq., 1200 Riverplace, Blvd., Jacksonville, who was among those arrested and incarcerated at the Seminole County Jail. Business managers listed on the document are Michael Graham and Joseph Harrington, both of JM Land Investments LLC, 103 North Main Street, Tabor City, N.C. Harrington has been arrested and was transported to the Florence County Detention Center in Longs, S.C. Graham remains wanted.

According to the FDLE, Operation “Reveal the Deal” uncovered a sophisticated racketeering and money laundering scheme stemming from 49 illegal gambling centers operating under the guise of “Internet cafes.” The organization falsely claimed to be a charitable veterans’ organization, but instead deceived the public and government while lining the pockets of its operators.

Internet Cafes have experienced rapid growth within the past six years despite open criticism about their legality.

When a customer enters an Internet cafe, they can buy Internet or phone time on a card and can surf the web or check email on any of the computers. However, customers play games such as “Captain Cash” and are encouraged to spend more money for a chance to win more money. Game makers argue the games are legal because there are a predetermined number of winners, much like the game Monopoly hosted by McDonald’s, however, the operations of the gambling devices were not heavily regulated.

The proposed bill will also place limits on sweepstakes and says arcades will be prohibited from offering gift cards or cash as prizes. It also mentions that arcades should be using coin-operated machines that involve an element of skill to win, not casino-style games.